Entrepreneurial Loan Program

VEDA recognizes that Vermont-based businesses in seed, start-up and growth stages are a vital source of innovation, employment, and economic growth in Vermont. This program provides financing to meet the working capital and capital-asset financing needs of Vermont-based businesses that may not have access to conventional means of financing.

Eligibility

  • Sole proprietorships, partnerships, corporations, LLC’s located in Vermont;
  • Businesses in seed, start-up or early growth stage who do not meet the underwriting criteria of other public and private entrepreneurial financing sources;
  • Businesses with innovative products or services that have the potential for long-term organic growth;
  • Businesses unable to access adequate capital because the primary assets used to secure loans are typically intellectual property or similar nontangible assets;
  • Businesses must demonstrate potential to create/retain employment opportunities for
    Vermonters.

Use of Proceeds

  • Purchase of capital assets and/or working capital; 
  • Refinance existing company debt in early stage companies in certain cases.

Loan Rates and Terms

  • Term of loan is based on assets being financed;
  • The Authority may collateralize its loans with mortgages on real estate and/or security interests in Project machinery and equipment, an assignment of customer contracts, and/or a security interest in the company’s proprietary technology. Flexibility with regard to collateral will be considered if adequate debt service cash flow coverage can be demonstrated;
  • Loans also will generally be guaranteed by any entity or individual who owns or controls 20% or more of the company;
  • VEDA may request an SBA guarantee at its discretion;
  • Click here for current rates and fees.

Special Consideration Will Be Given To:

  • Businesses that create jobs in strategic sectors, such as the knowledge-based economy,
    renewable energy, advanced manufacturing, wood products manufacturing, and value-added agriculture;
  • Businesses located in a designated downtown, village center, growth center, industrial park or other significant geographic location recognized by the State;
  • Businesses that adopt energy and thermal efficiency practices in their operations or otherwise operate in a way that reflects a commitment to green energy principles;
  • Businesses that will create jobs that pay a livable wage and significant benefits to employees.

Borrowing Parameters

  • VEDA may not fund more than ninety percent (90%) of the cost of the Project. Typically, the borrower will be required to provide the remaining ten percent (10%) of the total Project costs;
  • The amount of loan oustandings under the ELP program to any one borrower at any one time may not exceed $350,000;
  • Borrowers must maintain operations within the State of Vermont for a minimum of five years from the date the loan is funded, or borrower will be required to repay the loan in full.

Entrepreneurial Lending Program: 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.