Northeast Kingdom Special Loan Program

VEDA’s NEK Special Loan Program offers low interest loans under its Small Business Program to growing, qualified businesses in Essex, Caledonia and Orleans counties. VEDA has received $500,000 in low-cost funding from USDA's Rural Development to support this low interest financing. 

The NEK Program may make loans of up to $150,000 for fixed asset acquisition or for working capital purposes.

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, financing up to 90% of the total project cost when partnered with another lender. 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.

 

EligibilitY

  • Business must operate within Essex, Caledonia or Orleans counties;
  • If a farm, over 50% of household income must come from sale of Agricultural products.

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

  • Fixed 3.5% interest rate for five years;
  • Loan size is 40% of project up to $150,000, financing up to 90% of project (when partnered with another lender);
  • Loan term based on useful life of assets and cash flow; 
  • No closing fees, reimbursement for out-of-pocket costs;
  • Rapid loan approval and quick closing, provided projects meet USDA requirements.

Application Process