VEDA BOARD APPROVES $4.9 MILLION IN DEVELOPMENT FINANCING

New Yogurt Manufacturer to Construct Plant in Brattleboro

November 10, 2009

BURLINGTON, VT – Manufacturing, small business and agricultural financings of $4.9 million were approved by the Vermont Economic Development Authority (VEDA) to support business development projects totaling $33 million. 

 
“VEDA financing will help an exciting new manufacturing venture in Brattleboro get off the ground, creating new jobs in the process,” said Jo Bradley, the Authority’s Chief Executive Officer.  “Additionally, a number of agricultural and small business projects will receive VEDA’s help, as will several drinking water improvement and business energy conservation projects.” 

 
Financing approved by VEDA:

 
·        Commonwealth Dairy, LLC, Brattleboro  – This an exciting startup joint venture between Erhmann, AG, a well-established German yogurt manufacturer and several U.S. investors with experience in American dairy production industries and markets.  The new company is being formed in Brattleboro to produce yogurt using primarily Vermont milk.  VEDA approved a $1.3 million loan as part of a $26.3 million financing package utilizing the U.S. Treasury Department’s New Market Tax Credits to provide a portion of the equity funding.  Also participating in the project are Wainwright Bank and U.S. Bankcorp.  Commonwealth Dairy plans to construct a 39,000 square foot yogurt production facility on 5.9 acres of land in the Delta Campus at the southern end of Brattleboro.  When it reaches production capacity, the new facility is projected to purchase approximately 30 million pounds of Vermont milk annually and produce over 50 million pounds of yogurt each year.  Within three years of startup, it is projected that Commonwealth Dairy will create 24 jobs at the plant. 

 
In addition, VEDA approved:

 
·        $436,730 in direct financing to several commercial projects;

·        $1.5 million in financing to Vermont farmers through the Authority’s agricultural loan program, the Vermont Agricultural Credit Corporation (VACC);

·        $1.1 million to support small business development projects through the Vermont Small Business Loan Program;

·        $279,391 to repair or improve existing privately-owned drinking water systems through the Drinking Water State Revolving Loan Fund; and

·        $253,205 through the Vermont Business Energy Conservation Loan Program to help small businesses make energy efficiency and conservation improvements.

 
 
VEDA’s mission is to promote economic prosperity in Vermont by providing financial assistance to eligible businesses, including manufacturing, agricultural, and travel and tourism enterprises.  Since its inception in 1974, VEDA has made financing commitments totaling over $1.5 billion.  For more information about VEDA, visit www.veda.org or call 802-828-5627.
 
 
-30-