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Financial Access Program (FAP)This program utilizes a pooled reserve concept and is designed to enable small businesses to access commercial credit.
A bank may participate in this program by signing a "Master Agreement" with VEDA. A Reserve Fund, established with premiums paid by the borrower and matched by VEDA, is set up for each bank to insure loans enrolled in the program. This Fund is available to cover losses incurred by the lender on any of its enrolled loans.
Eligibility
- Corporation, partnership, joint venture, sole proprietorship, cooperative, or other entity, whether profit or nonprofit, duly authorized to conduct business in the State of Vermont.
- Borrower's gross annual sales must be less than $5 million.
Use of Proceeds
- Proceeds cannot be used for the construction or purchase of residential housing or to finance passive real estate ownership.
- Proceeds cannot be used to refinance a loan made by the same bank not previously enrolled in the program.
Loan Rates and Terms
- Interest rate, term, down payment, collateral, etc. are determined by the participating lender.
- The loan must have a principal balance of $200,000 or less.
Fee Structure
- The lender may charge the borrower a premium between 1.5% and 7.0% of the loan amount.
To find out more about the Financial Access Program talk to your lender.
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