Vermont Small Business Loan Program

VEDA’s Vermont Small Business Loan Program is available to assist growing Vermont small businesses that are unable to access adequate sources of conventional financing. This program may make loans of up to $500,000 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. 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

  • Eligible borrowers must be U.S. citizens or 51%-owned by U.S. 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

  • 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; 
  • Maximum term for working capital loan is three years;
  • Click here for current rates and fees.

Application Process

  • Applicants are advised to discuss their proposed project with VEDA Staff prior to submitting the application; 
  • Certain loans may be approved internally; other loans must be presented to the VEDA Board at their semi-monthly meetings;
  • To complete the application, click here to download and print the application or right click to "Save Link As..." to utilize the fillable application.  If you can’t open this application, download the free Adobe PDF Reader.
  • Applications may also be obtained at the VEDA offices in Montpelier, Burlington, and Middlebury.
Note:  Loan terms, rates, fees and conditions may vary from those shown above if the loan is enrolled in a government guaranteed loan program.

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