EDA Business Recovery Fund Loan Program


  • Must be unable to access adequate conventional credit and must have sustained direct physical damage, economic injury or some ancillary damage from the 2011 spring floods, Tropical Storm Irene or the lack of snow during the 2011-2012 winter.
  • Most kinds of businesses are eligible except those engaged in gambling or speculative or illegal activities.

Use of Proceeds

  • Acquisition of machinery and equipment or working capital;
  • Loan proceeds generally may not be used for refinancing existing debt unless a “sound economic justification” is presented. Sound economic justification generally does not include refinancing to lower debt service costs, but could include refinancing to support additional capital investment intended to increase business activities.

Loan Rates and Terms

  • Please click here for current interest rates;
  • Loan term generally between 3-5 years.


  • 1.00% commitment fee ($250 minimum and $2,000 maximum);
  • $50 credit report fee;
  • $18 flood insurance certificate (if required);
  • Document recording/discharge fees; and
  • No application fee.

Application Process

  • Loans may be approved internally by VEDA Staff;
  • Applicants are advised to discuss their proposed project with VEDA Staff prior to submitting the application;
  • Loan applications may be downloaded or obtained from VEDA’s office; and
  • The Vermont Small Business Development Center will provide no-cost responsive technical assistance advice during the pre-loan, loan application preparation and post-loan stages to applicants seeking financing from the program.

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