Small Business Loan Program

As a general rule, a small business working capital loan may not exceed 50% of the project cost, and a fixed asset loan may not exceed 40% of project cost. However, in certain instances small business loans (not to exceed $50,000) may be made for up to 75% of the cost of a project. Borrowers are required to provide at least 10% of the project cost in the form of equity capital.

Vermont Small Business Loan Program: Eligibility

  • Eligible borrowers must be U.S. citizens or 51%-owned by U.S. citizens, and unable to access conventional credit; and
  • Applicants must demonstrate potential to create/retain employment opportunities for Vermonters.

Vermont Small Business Loan Program: Use of Proceeds

  • Fixed asset acquisition (land, buildings, machinery and equipment);
  • Working capital; and
  • Proceeds may not be used for refinancing existing debt or for lines of credit.

Vermont Small Business Loan Rates and Terms

  • Please click here for current interest rates;
  • Loan term of between five and seven years for machinery and equipment;
  • Loan term of up to ten years (generally with a 15-year amortization) for real estate; and
  • Maximum term for working capital loan is three years.


  • 1.25% commitment fee;
  • $250 minimum to $2,000 maximum;
  • $50 credit report fee;
  • $18 flood insurance certification (if required);
  • Document recording/discharge fees; and
  • $100 application fee.

Vermont Small Business Loan Program: 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; and
  • Vermont Small Business Loan Program applications may be downloaded or obtained from VEDA’s office.
  • Note:  Loan terms, rates, fees and conditions may vary from those shown above if the loan is enrolled in a government guaranteed loan program.


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