About this programme
The Entrepreneurial Loan Program (ELP) is run by the Vermont Economic Development Authority (VEDA) for Vermont-based sole proprietorships, partnerships, corporations and LLCs in the seed, start-up and growth stages. It targets businesses that lean on intellectual property rather than tangible assets, which typically struggle to meet conventional bank underwriting.
The loan can fund the purchase of capital assets, working capital, or both, for companies developing an innovative product or service that will create or keep jobs in Vermont.
How it works
VEDA can finance up to 90% of project cost, with the borrower expected to contribute at least 10%. The maximum loan amount, and the maximum aggregate outstanding balance per borrower, is $500,000. Where the loan carries an SBA guarantee, the SBA-guaranteed portion is capped at $350,000.
Loan term is set based on the assets being financed. On the unguaranteed side, VEDA offers a fixed interest rate for 5 years, which can be re-fixed for another 5-year period at the rates prevailing at that time, or converted to VEDA's variable rate. SBA-guaranteed loans price off either the WSJ Prime variable rate or VEDA's 5-year fixed rate. Interest rates move with the market, so VEDA recommends calling for a current quote.
VEDA takes collateral where available: mortgages on real estate, security interests in equipment, assignment of customer contracts, and pledges of proprietary technology. Owners holding 20% or more equity in the business must give a personal guarantee.
Fees include a 1% commitment fee (minimum $250) and a $30 credit report fee. Where an SBA Community Advantage guaranty applies, the borrower is normally responsible for an up-front guaranty fee that scales with loan size and term, though SBA is currently waiving these fees.
Who can apply
Business must be a sole proprietorship, partnership, corporation or LLC located in Vermont.
Business must be in an early stage of development and unable to access conventional financing.
Business must be capable of creating or retaining employment in Vermont and be developing an innovative product or service.
How to apply
- Contact VEDA staff to discuss your project.
- Download the application package from VEDA's site.
- Submit the application to any VEDA office: Montpelier, Burlington or Middlebury.
Documents you’ll typically need
- Completed commercial application package (downloadable as a zip file from VEDA's site)
Frequently asked
How much can I borrow through the Entrepreneurial Loan Program?
Up to $500,000 per borrower, with VEDA financing up to 90% of project cost. If the loan carries an SBA guarantee, that guaranteed portion is capped at $350,000.
What can the loan be used for?
Purchase of capital assets, working capital, or both.
What does it cost to close the loan?
A 1% commitment fee (minimum $250) plus a $30 credit report fee, and, where applicable, an SBA guaranty fee that VEDA says the SBA is currently waiving.
Do I need to put up a personal guarantee?
Owners with 20% or more equity in the business are required to give a personal guarantee.
Where do I apply?
At any of VEDA's three offices, in Montpelier, Burlington or Middlebury, after first discussing the project with VEDA staff and downloading the application package.
More funding in Vermont
Elevate Vermont SBIR/STTR Matching Grant
Vermont Department of Economic Development (Agency of Commerce and Community Development) · Vermont
A non-competitive $50,000 state match for Vermont businesses that already won a federal SBIR or STTR award, to help commercialize their technology.
Fresh Tracks Capital
Fresh Tracks Capital · Vermont
A Vermont venture capital fund investing roughly $600,000 on average in Vermont-based companies across manufacturing, tech, food, and more.
Loan Participation Program (SSBCI)
Vermont Economic Development Authority (VEDA) · Vermont
VEDA co-lends alongside a bank on loans up to $20 million total project size, often at a lower rate, for Vermont businesses under 750 employees.
UVMVentures Fund
University of Vermont, Office of the Vice President for Research (OVPR) · Vermont
A competitive UVM fund, backed by $100,000 a year from the State of Vermont, to help faculty discoveries reach commercialization.
Vermont Community Loan Fund — Business Loans
Vermont Community Loan Fund · Vermont
A Vermont CDFI lending to businesses at any stage that conventional banks turn down, with two dedicated farm, food, and forestry loan tracks.
Vermont Seed Capital Fund
Vermont Center for Emerging Technologies (VCET) · Vermont
VCET's evergreen seed fund makes equity investments in early-stage Vermont tech and scalable companies, most sectors welcome.
All 12 programmes in Vermont →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.