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 (1% for TLP with no min/max.);
- $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.