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Vermont Small Business Loan ProgramThis program may make loans up to $150,000. As a general rule, loans are made for a maximum of 50% of the project costs. However, in certain instances loans may be made for up to 75% of the cost of a project. Borrowers are required to provide at least 10% of the project in the form of equity capital.
Eligibility
- Eligible borrowers must be US citizens and unable to access conventional credit;
- Applicants must demonstrate potential to create/retain employment opportunities for Vermonters.
Use of Proceeds
- Fixed asset acquisition (land, buildings, machinery and equipment);
- Working capital;
- Proceeds may not be used for refinancing existing debt, or for lines of credit.
Loan Rates and Terms
- Prime, less 1%, fixed at closing;
- Loan term of between five and seven years for machinery & equipment;
- Loan term of up to ten years (generally with a 15-year amortization) for real estate;
- Maximum term for working capital loan is three years.
Fees
- Loans up to $50,000, application fee of $50;
- Loans over $50,000, application fee of $100;
- A 1% commitment fee is charged on all loans at the time of closing.
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;
- Vermont Small Business Loan Program Applications may be downloaded or obtained from VEDA's office.
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