Frequently Asked Questions 

Please note, we are updating this page as information becomes available and you should refresh your browser to ensure you are viewing the current version. 

  1. Can a business be headquartered outside of Vermont?
    Yes, provided the business has operations and employees in Vermont and the Vermont operations have separate financial statements which will be used to calculate eligibility and the loan amount.

  2. Can an applicant use a different year than 2019 as the base-year?
    Potentially yes. However, in most situations, we expect the applicant to use 2019 as the base year. In the rare cases that the 2019 financial results do not represent a typical year, the applicant will be required to: 1) provide a written explanation for why 2019 was not a typical year; and 2) provide 2017, 2018, and 2019 tax returns for VEDA’s review and determination of an appropriate base year to input.

  3. What should the applicant use for the 2019 base year if the business was purchased or started during 2019, or if the business was purchased or started in 2020 before 3/13/2020?
    This will vary depending on the circumstances. A good starting point is the original financial projections contained in the initial business plan. Please seek help from a Technical Assistance (TA) provider or reach out to VEDA at: flp@veda.org for these situations.

  4. Is an applicant eligible if they either purchased or started the business after 3/13/2020?
    In most situations, no. However, if the applicant took significant steps towards opening prior to 3/13/2020, the business MIGHT be eligible for the program. See below on how “significant steps” are defined.

    If the applicant believes that they qualify, Question #3 above should be followed for directions on how to determine the 2019 base-year.

  5. What constitutes “significant steps” taken toward becoming operational prior to 3/13/2020?
    The applicant will need to prove that steps were taken prior to the start of the pandemic that show a significant financial investment and time investment in opening or purchasing the business. Examples include but are not limited to: signing a lease; making a deposit on equipment or lease; expending funds on tenant improvements; expending funds on equipment; or signing a non-cancelable purchase & sale agreement.

  6. What is meant by “seasonal business” and how will an applicant know when to include and input the first 6 months of 2019 financials?
    A business is considered seasonal if it has seasonal influences on its revenues and expenses. While some seasonal businesses are closed for certain months every year, many seasonal businesses remain open year-round but have peak and off-peak periods which are generally consistent from year to year. For example, most lodging facilities in Vermont have seasonal peak and off-peak periods and should expect that VEDA will require the applicant to provide (and input into the FLP Calculator Tool) the first 6 months of 2019. If you are not sure your business experiences seasonality, please provide the 2019 first 6 months financial data to enable VEDA to make the determination.

  7. The application asks for a UEI number. What is it and how do I obtain one?
    Unique Employer Identification numbers replaced DUNS numbers in April 2022. The instructions for obtaining a UEI are linked next to the field that solicits the UEI number on the application.

    Note that a DUNS number is not necessary to obtain a UEI number. However, if the applicant is already in the government site SAM.gov and already has a DUNS number, a UEI number has been issued and the applicant should get a quick turnaround. If the applicant is new to SAM.gov and never had a DUNS number, it will take more time to obtain the UEI number. However, this will not hold up processing of your application provided you take a screen shot of your UEI application and send along with your FLP Application.

  8. How does an applicant input the numbers in the FLP Calculator Tool if their fiscal year end is not a calendar year end?
    Your TA provider or VEDA staff processor will help determine the best solution. In most instances you will be required to input financial data based on a calendar year end and provide the tax returns based on fiscal year end to validate the information. Please reach out to the TA providers or send us a note in our dedicated email box: flp@veda.org

  9. Why does the estimated loan amount show as $0 when the box above it shows that the applicant is eligible?
    The intent of the program is to help businesses which continue to experience working capital shortfalls due to the pandemic. Eligibility is based on the economic harm the applicant experienced in 2020 and 2021 compared with 2019. However, the estimated loan amount is based on the applicant’s financial results during the 2020 – YTD 2022 period, with more weight given to the 2021 and 2022 data. If the applicant has substantially improved during the more recent periods, the estimated loan can calculate a $0 loan amount.

  10. When does the 12-month period to apply for forgiveness start?
    The 12-month period starts the day the loan is funded. Borrowers may apply for forgiveness any time after the loan is funded, but no later than the end of the 12-months after funding.

  11. How long will it take for my application to be decisioned?
    Applications are reviewed on a rolling basis. VEDA will strive to decision applications within two weeks of submission, however actual time between submission and decision may be longer or shorter, depending on the volume and completeness of applications submitted during a given time period.

  12. If my business pays rent to a real estate holding company that I also fully or partially own, what additional information is needed?
    To gain a full understanding of the business’ working capital and cash flows, you will need to provide the tax returns for both the real estate holding company and the operating business. Please input the financial information from the operating business only and your VEDA staff processor will adjust the FLP Calculator Tool if necessary, based on review of the Real Estate Holding company’s tax returns.

  13. What businesses are included in “Tourism” for determination of a priority sector?
    The tourism industry supports a traveler’s need for transportation, food, lodging, amusement, events, weddings, and entertainment. However, businesses involved in the transportation, amusement, events, weddings, and entertainment sectors require the business to generate at least 50% of their revenues from out of state visitors. Tourism does not include retail businesses.

  14. When will the program open to businesses not in the priority sectors?
    VEDA will announce on October 15th if the program will be opened to non-priority sector businesses. The decision will be based on the level of volume from priority businesses and the amount of funding remaining. Please check back here.

  15. What if I do not have Excel?
    If you do not have access to Excel, you can use Google Sheets when accessing the FLP Calculator Tool. From within Google Sheets, you can download your work as an .xlsx to submit with the following steps. A Mac user can save a Numbers file to xlsx in a similiar way.
    1. Select File
    2. Download
    3. Microsoft Excel (.xlsx)
  16. Is the VEDA Short-Term Forgivable Loan considered taxable income?
    In general, the IRS treats debt that is forgiven as taxable income and you must report the forgiven debt on your tax return for the year forgiveness is granted. The State of Vermont generally follows IRS guidance. Please note: VEDA does not give tax advice and you are encouraged to speak with your tax advisor concerning the tax implications of the VEDA Short Term Forgivable Loan.