About this programme
The Vermont Loan Participation Program gives small businesses, nonprofits and agricultural enterprises in Vermont access to capital by having VEDA co-lend alongside a bank or other lending institution. It is funded with $29 million from the State Small Business Credit Initiative (SSBCI), a program run by the U.S. Treasury.
The program is meant to help businesses recover from the pandemic, build out Vermont's entrepreneurial ecosystem, and create quality jobs across the state. It works by strengthening VEDA's existing commercial, agricultural, forestry and energy lending, rather than as a standalone application track.
How it works
VEDA partners with a bank or other lender on the deal, often taking a subordinate position, to provide the financing a borrower needs beyond what the primary lender can offer alone.
These are loans, not grants, and are repaid under standard repayment terms like any commercial loan.
Total project financing must stay under $20 million per transaction. The loan cannot be combined with an SBA or USDA Rural Development loan for the same purpose, though refinancing is permitted under specific conditions.
Who can apply
Business must have fewer than 750 employees worldwide.
Financing must be for business purposes, not for passive real estate investment.
Loan cannot fund speculative activities, gambling, pyramid sales, or any activity prohibited by federal or state law.
How to apply
- Contact VEDA at 802.828.JOBS (5627) or through VEDA.org/contact-us to discuss the project, typically alongside your bank or lender.
Frequently asked
Is this a grant or a loan?
A loan. It must be repaid under standard repayment terms, not treated as a grant.
How does VEDA get involved in my loan?
VEDA partners with your lending institution, often in a subordinate position, to add the financing needed to meet the full amount you require.
Is there a size limit on the business or the deal?
The business must have fewer than 750 employees worldwide, and total project financing must be under $20 million per transaction.
Can I use this alongside an SBA loan?
No. The program cannot be combined with an SBA or USDA Rural Development loan for the same purpose.
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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.