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.


  • 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 intangible assets;
  • Businesses must demonstrate potential to create/retain employment opportunities for Vermonters.

Use of Proceeds

  • Purchase of capital assets and/or working capital; 

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 any individual who owns or controls 20% or more of the company. A pledge of personal assets may be required if business assets are deemed not sufficient collateral;
  • 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 maximum loan amount is $350,000 and the amount of loan oustandings under the ELP program, to any one borrower, at any one time, may not exceed $500,000;
  • 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

Note:  Loan terms, rates, fees and conditions may vary from those shown above if the loan is enrolled in a government guaranteed loan program.