The Rural Industry Development Program (RIDP) is designed to respond to a lack of available industrial space in areas that can accommodate business growth. RIDP provides grant funding through local development corporations to support business relocation and expansion efforts. Eligible uses include the purchase, demolition, building and/or renovation of property for industrial use.
RIDP is expected to mitigate the timeline risk of permitting and building delays that businesses confront when they express interest in moving to, or relocating or expanding within, the State by having space readily available. This program is intended to increase Vermont’s competitive advantage in the region by having available land and/or facilities for businesses that express interest in relocating, growing, and remaining in the state.
RIDP requires the formation of a Rural Industry and Development Fund (RIDF). DED intends to manage RIDF as a revolving fund. That means if an industrial property that benefitted from RIDP is later sold, the awardee will return the amount of the total principle of the grant plus 2.5% compounded annually, not to exceed $250,000. That money will then be used to make more RIDP grants possible.
This intent is described in Vermont ACT 78, Sec. F.8 RURAL INDUSTRY DEVELOPMENT GRANT PROGRAM as follows:
A Rural Industry Development Grant Program is created within ACCD to provide grant funding through local development corporations to support business relocation and expansion efforts, eligible uses shall include the purchase, demolition, and renovation of property for industrial use (the Project Property). To the extent funding is appropriated, ACCD shall make grants through the Program to assist local development corporations with the development of industrial real estate that can support business relocation and expansion efforts throughout Vermont.
Rural Industry Development Program Guidelines
Eligible Applicants
Regional/local non-profit development corporations (Applicants) will be eligible to apply for the grant program. Local development corporation means any nonprofit organization incorporated in the state for the purpose of fostering, encouraging, and assisting the physical location of business enterprises in Vermont and having as its principal purpose the industrial and economic development of one or more political subdivisions.
If the Applicant plans to own or develop the real estate through a separate legal entity, it must demonstrate that the Applicant is the parent organization for any real estate holding company or Limited Liability Company, or other entities that will be acquiring property or completing the project.
Eligible Projects
An Applicant may use an award to support business relocation and expansion efforts by constructing or improving industrial property including the following:
- for the purchase, demolition, and/or renovation of property for industrial use.
- for the costs of site development, permitting, or providing infrastructure for property the recipient owns (or controls).
- for the equity investment required for a loan transaction through the Vermont Economic Development Authority under 10 V.S.A. chapter 12, subchapter 3 (or other loans).
- for the matching requirement of another State or federal grant for the eligible purposes.
Award Amount
An award shall not exceed the lesser of $1,000,000 or 20 percent of the total eligible project costs.
Application Review Criteria
Applications will be evaluated on criteria that will include:
- An applicant shall include in its application a local and regional market assessment that demonstrates reasonable need for the proposed development and identifies imminent, potential, or existing business growth opportunities.
- Regional and local support for the project
- The readiness of the proposed project to move forward, including evidence that the grant funding is necessary to complete the project as well as the availability, eligibility, and progress in securing other sources of funding.
- The Applicant’s ability to demonstrate their ability to manage including requisite experience, a plan for fiscal viability, ability to complete and find occupants for the proposed project.
- A description of the permitting required to complete the proposed project and a plan for securing them.
Application Process
Applicants are required to:
- Submit a local and/or regional market assessment demonstrating the need for the Project Property
- Submit a property appraisal of real property to be purchased or constructed performed by an appraiser acceptable to the Agency of Commerce and Community Development.
- Fill out the project budget form included in the application form.
- Provide a worksheet outlining the sources and uses of the funds needed for the proposed project.
- Demonstrate community support for the project.
- Clearly demonstrate institutional capacity and project readiness.
- Provide permits acquired, needed and
- Submit project timeline.
All applicants will be required to submit a completed application, attached with any supplemental documents required through this form instrument. Please note that all uploaded documents must be submitted in a PDF format. Photos of documents (.jpg, .img, .png formats) will not be accepted.
Applications for the first round of funding will be accepted until March 15, 2024.
For support, including language translation assistance, please email ACCD.RIDPteam@vermont.gov