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Vermont Small Business Loan ProgramVEDA’s Vermont Small Business Loan Program is available to assist growing Vermont small businesses that are unable to access adequate sources of conventional financing, specifically targeting those that are creating or retaining jobs. This program may make loans of up to $200,000 for fixed asset acquisition. If a loan will be used for working capital purposes, the maximum loan amount is $150,000. As a general rule, a 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 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 US 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
- Please click here for current interest rates;
- Loan term of between five and seven years for machinery & 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.
Fees
- Loan application fee is $100;
- A 1.25% commitment fee is charged on all loans at the time of closing. The commitment fee is capped at $2,000, with a $250 minimum.
Application Process
- Loans may be approved internally by VEDA Staff;
- Applicants are advised to discuss their proposed project with VEDA Staff prior to submitting the application;
- Vermont Small Business Loan Program Applications may be downloaded or obtained from VEDA's office.
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