Two lending agencies are offering a special loan program for the building subcontractors who have not been paid for work at Jay Peak and Burke Mountain ski areas.
About $4.6 million is owed to subcontractors that worked at the two resorts, according to documents filed with the U.S. District Court of Southern Florida.
Vermont Economic Development Authority and the Northern Community Investment Corp. have teamed up to give subcontractors access to working capital for up to a six-year period, according to a press release. Loans are available immediately. The first year is interest only at a rate of 4 percent. The maximum amount that can be borrowed is $500,000.
The Jay/Burke Contractor Assistance Loan Program is funded through VEDA’s small business loan program. No state funding will be used.
Jon Freeman, president of NCIC, says the two lenders will consider the needs of each business on a case-by-case basis. “We support the situation,” Freeman said. “The main thing is to keep employment levels up and get businesses through this challenging time.”
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