About this programme
The Vermont Small Business Loan Program is run by the Vermont Economic Development Authority (VEDA) for growing Vermont small businesses that cannot get conventional financing. It lends up to $1,000,000 for fixed asset purchases or working capital.
The program is built for businesses that have moved past the earliest start-up stage and now need capital to buy equipment, real estate, or fund working capital, but can show they still can't secure a conventional bank loan on their own.
How it works
VEDA caps working capital loans at 50% of project cost and fixed asset loans at 40% of project cost, with the borrower expected to put in at least 10% equity. Loans of $100,000 or less can reach a higher 75% of project cost.
Loan proceeds cannot be used to refinance existing debt or to fund a line of credit.
Terms run 5 to 7 years for machinery and equipment, up to 10 years for real estate (generally amortized over 20 years), and a maximum of 3 years for working capital loans.
Smaller loans can be approved internally by VEDA; larger ones go to VEDA's Board, which meets twice a month.
Who can apply
Borrower must be a U.S. citizen, or the business must be 51% or more owned by U.S. citizens.
Business must be unable to access conventional credit on its own.
Business must show potential to create or retain employment in Vermont.
How to apply
- Consult VEDA staff before submitting an application.
- Download the application package, or obtain the forms at a VEDA office.
- Submit the completed application; smaller loans can be approved internally, larger ones go before VEDA's Board at its semi-monthly meetings.
Documents you’ll typically need
- Completed VEDA commercial loan application package
Frequently asked
How much can a Vermont small business borrow?
Up to $1,000,000, for fixed assets or working capital.
Can the loan be used to pay off existing debt?
No. Proceeds cannot be used for refinancing existing debt or for lines of credit.
How much of the project does VEDA cover?
Working capital loans are capped at 50% of project cost and fixed asset loans at 40%, though loans of $100,000 or less can reach 75%. The borrower puts in at least 10% equity.
How long do I have to repay?
5 to 7 years for machinery and equipment, up to 10 years for real estate (usually amortized over 20 years), and a maximum of 3 years for working capital.
Who approves the loan?
Smaller loans can be approved internally at VEDA; larger loans go before VEDA's Board, which meets twice a month.
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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.