Financing for Vermont Businesses and Farms

Commercial Financing

VEDA offers innovative, low-interest loan programs that often fill the financing gap for a commercial start-up or expansion project. Working either directly with a business, or in partnership with a commercial lender, VEDA customizes financing solutions to fit the unique needs of business projects, large or small, utilizing a number of innovative loan programs.  Please call VEDA at 802-828-5627 or contact us here if you have any questions about which loan program would be best for your project. 

Program Title Program Details
Direct Loan Program
  • Loans up to $1.5 million (or 40% of a project, whichever is less) to finance construction or renovation of real estate and/or purchase and installation of machinery and equipment, and furniture and fixtures;
  • Eligible businesses include manufacturing, processing, warehousing, research and development, travel and tourism, information technology, certain energy-related projects, and others as defined in statute;
  • Project must involve private (i.e., bank or credit union) financing for some portion of project and at least 10% equity contribution by borrower;
  • VEDA may also purchase a portion of an eligible loan made by a bank or credit union.
Small Business Loan Program
  • Maximum loan $500,000;
  • Eligible borrowers must be U.S. citizens or 51% owned by U.S. citizens and unable to access adequate conventional credit;
  • Loans may be for fixed assets (up to 40% of project or working capital (up to 50% of project);
  • Financing may be up to 75% for loans under $50,000;
  • Eligible businesses include manufacturing, processing, warehousing, research and development, travel and tourism, information technology, certain energy generation or efficiency projects, and retail and service businesses.
Entrepreneurial Loan Program
  • Up to a maximum of $350,000 in loans outstanding to any one borrower at any one point in time;
  • Loans may be made for working capital or fixed assets;
  • Eligible borrowers include businesses in seed, start-up or early growth stages unable to access adequate capital from other public and private financing sources.
Local Development Corporation Program
  • Loans to nonprofit local and regional development corporations for land for industrial parks, industrial park planning and development, construction or improvement of “spec” buildings or small business incubator facilities.
Revenue Bond Program
  • Tax-Exempt Bonds may be issued for certain manufacturing or 501(c)(3) entities, or certain “exempt facilities;"
  • Best utilized for projects over $1 million; limit is $10 million per Federal statute;
  • Bonds do not carry guarantee of VEDA or the State of Vermont;
  • Marketability and rate based on creditworthiness of borrower;
  • Rate set by Bond Purchaser.
SBA 504 Program
  • Financing up to 40% of a project (up to $5.5 million) for acquisition of land and buildings, improvements, or for the purchase of machinery and equipment; and
  • Eligibility requirements per SBA regulations;
  • Certain refinancing allowed.
Vermont Capital Access Program
  • Designed to encourage the extension of credit to businesses which might otherwise have difficulty accessing credit. Establishes a pooled portfolio cash reserve with participating banks, which is available to cover losses on enrolled loans;
  • See your bank or credit union for more information.
Brownfields Revitalization Program
  • Loans to assist in the redevelopment of eligible contaminated properties that meet the EPA definition of ‘Brownfields’; and available to for-profit, not-for-profit and municipal entities deemed eligible under State’s Redevelopment of Contaminated Properties Program (RCPP).
State Infrastructure Bank Program
  • Loans for construction or reconstruction of highways, roads and bridges or certain rail transit facilities, and electric vehicle charging stations;
  • Eligible entities include municipalities, regional development corporations or political subdivisions of the state. Private sector companies entering into a contract with a public authority to carry out a qualified project are also eligible.
State Drinking Water Program
  • Privately-owned community and privately-owned nonprofit, non-community public water systems are eligible;
  • Loans to plan, permit, design, construct, repair or improve an existing eligible water system to comply with federal and state standards;
  • Projects must be reviewed and recommended by the Agency of Natural Resources.
Export Assistance
  • As the Regional Export Promotion Program (REPP) Partner of the United States Export-Import (Ex-Im) Bank, VEDA provides loan packaging and is the Vermont liaison with the Ex-Im Bank in Washington, D.C.;
  • VEDA may also provide a direct source of financing for support of export sales through Ex-Im Bank’s working capital guarantee and insurance programs.