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Career Tech Ed Loan

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Our Career Technical Education (CTE) Construction & Rehabilitation Revolving Loan Fund is an innovative approach to bolstering Vermont's building trades workforce while creating affordable housing and uplifting our communities.

The fund offers zero-fee, zero-interest, partially forgivable loans to any of Vermont's 17 career technical education centers or their partners.

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  • Expanding affordable housing access through new residential construction or rehabilitation of blighted properties 

  • Improving land to meet critical community needs

  • Providing substantial community benefit through commercial construction

Funded projects give high school and adult CTE students hands-on experience while accomplishing at least one of these goals:

Loan Guidelines

  • Eligible projects must:

    • Expand affordable housing access through new residential construction or rehabilitation of blighted properties, or 

    • Improve land to meet critical community needs, or

    • Provide substantial community benefit through commercial construction 

  • Whether led by the CTE or the partner, each project must offer a substantial educational experience for students enrolled in construction, electrical, plumbing, design, business management or other CTE programs.

    Eligible CTE partners may include:

    • Housing or community organizations

    • Nonprofits

    • Town government

    • Private businesses

    • Loans up to $650,000 at 0% interest for a term of up to seven years 

    • No loan payments for the duration of the project 

    • Loans repaid in full (lump sum) at project completion or loan maturity, whichever is sooner 

    • Larger loans, supplemental loans, and term extensions may be considered 

    • Security will include a mortgage on the property and other possible collateral 

    • Loan may support property acquisition, predevelopment, construction or bridge financing 

    • Housing projects may involve rehabilitation or new construction of buildings not to exceed four residential units 

    • Housing must be energy efficient and include a weatherization component 

    • Applicants may include an administrative or development fee (capped at 10 percent of total project cost, with a cap on total allowable fee)

    • Applicants may include contingency costs (ex: 10 percent of construction costs)

    • Loans may be partially forgivable for projects that create permanently affordable housing

  • Working closely with applicants, VCLF will define two areas for partial loan forgiveness. These include: 

    • For all projects: Instructor and student wages outside of normal school hours (afternoons, vacations, summer) 

    • For projects that create permanently affordable housing: The identified gap between the total project cost and the takeout financing (i.e., other sources of funds, sale price) when the property will be sold or rented to Vermonters with low or moderate incomes (less than 120 percent of HUD area median income; see guidelines here). Gap forgiveness is capped at 30 percent of the loan amount.

    • VCLF will estimate potential loan forgiveness during the application process. But the final forgiven amount is not calculated until loan payoff, after all project sources and uses are final.

    • The current maximum loan amount is $650,000.

  • The best first step is to reach out to your local CTE center to discuss a potential partnership. Visit Vermont CTE to find a CTE near you.

    Then connect with us to brainstorm ideas, learn more, or to discuss a project. Complete the form below, email CTE project manager Kathleen James (kath@vclf.org), or call her at 802-223-4439.

This fund was made possible by foundational support from the Vermont Legislature and in partnership with the Vermont Housing & Conservation Board.

Interested in our CTE loan program, have questions, or just want to learn more? Fill out this form and we’ll be in touch!

Get In Touch

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Kath James

Career Technical Education Loan Program Manager

Vermont is committed to building a thriving workforce, solving its housing crisis, and uplifting communities all across the state and our career technical education centers have an important role to play in the process.