- Vermont-located businesses (sole proprietorships, partnerships, corporations, LLC’s).
- Businesses in seed, start-up or early growth stage who do not meet the underwriting criteria of other public and private entrepreneurial financing sources.
- Businesses with innovative products or services that have the potential for long-term organic
- Businesses unable to access adequate capital because the primary assets used to secure loans are typically intellectual property or similar nontangible assets.
- Businesses must demonstrate potential to create/retain employment opportunities for
Use of Proceeds
- Purchase of capital assets and/or working capital; and
- Refinance existing company debt in early stage companies in certain cases.
Loan Rates and Terms
- Term of loan is based on assets being financed.
- The Authority may collateralize its loans with mortgages on real estate and/or security interests in Project machinery and equipment, an assignment of customer contracts, and/or a security interest in the company’s proprietary technology. Flexibility with regard to collateral will be considered if adequate debt service cash flow coverage can be demonstrated.
- Loans also will generally be guaranteed by any entity or individual who owns or controls 20% or more of the company.
- VEDA’s interest rate will be based on VEDA’s Base Rate Index, as adjusted from time to time,
Special Consideration will be Given To
- Businesses that create jobs in strategic sectors, such as the knowledge- based economy,
renewable energy, advanced manufacturing, wood products manufacturing, and value-added
- Businesses located in a designated downtown, village center, growth center, industrial park or
other significant geographic location recognized by the State.
- Businesses that adopt energy and thermal efficiency practices in their operations or otherwise
operate in a way that reflects a commitment to green energy principles.
- Businesses that will create jobs that pay a livable wage and significant benefits to employees.
- VEDA may not fund more than ninety percent (90%) of the cost of the Project. Typically, the borrower will be required to provide the remaining ten percent (10%) of the total Project costs.
- The amount of loan oustandings under the ELP program to any one borrower at any one time may not exceed $350,000.
- Borrowers must maintain operations within the State of Vermont for a minimum of five years from the date the loan is funded, or borrower will be required to repay the loan in full.
- 1.25% commitment fee ($250 minimum and $2,000 maximum).
- $50 credit report fee.
- $18 flood insurance certification (if required).
- Appraisal reimbursement (if applicable).
- Document recording / discharge fees.
- Document recording/discharge fees.
- $100 application fee.
Entrepreneurial Lending Program: Application Process
- Applicants are advised to discuss their proposed project with VEDA Staff prior to submitting the application.
- Loans may be approved internally by VEDA Staff.
- ELP applications may be downloaded here or obtained from VEDA’s office.