VEDA Vermont Small Business Loan Program
Vermont Economic Development Authority (VEDA)
Up to $1,000,000
Researched for this program: 5 rejection traps · 6 required documentsWhat decides this award ↓
Vermont gap-financing loan
A direct gap-financing loan from the Vermont Economic Development Authority for growing Vermont small businesses that cannot access adequate conventional financing. VEDA makes loans of up to $1,000,000 for fixed-asset acquisition (land, buildings, machinery, equipment) or working capital. A fixed-asset loan may finance up to 40% of project cost and a working-capital loan up to 50%; smaller loans of $100,000 or less may finance up to 75% of project cost. Borrowers must contribute at least 10% equity, must be U.S. citizens or 51%-owned by U.S. citizens, and must show potential to create or retain jobs for Vermonters. Refinancing existing debt and lines of credit are not eligible.
- Funding type
- Loan
- Level
- State
- Amount range
- Up to $1,000,000
- Realistic amount
- VEDA participates alongside a bank rather than financing the whole project, so a typical small-business loan covers a 40–50% slice of a project and commonly lands in the tens of thousands to a few hundred thousand dollars rather than the $1M cap.
- Deadline
- Rolling — applications accepted year-round; loans are approved internally or at VEDA Board meetings held roughly twice monthly.
- Status
- active
- States
- Vermont
- Payment model
- loan
Who qualifies
- Vermont small business
- Unable to access adequate conventional financing
- U.S. citizen or 51%-or-more owned by U.S. citizens
- At least 10% equity capital from the borrower
- Demonstrated potential to create or retain employment for Vermonters
- Not for refinancing existing debt or lines of credit
What it covers
Eligible expenses
- Land acquisition
- Buildings and real estate
- Machinery and equipment
- Working capital
Ineligible expenses
- Refinancing existing debt
- Lines of credit
- Project costs above the program's percent-of-cost caps
- Projects with no Vermont employment impact
How to apply
-
1
Contact VEDA staff
Reach out to a VEDA loan officer (Montpelier, Burlington, or Middlebury) to discuss the project, eligibility, and whether VEDA or a bank-plus-VEDA structure fits.
~3 hrs
-
2
Assemble the loan application
Complete VEDA's application with project description, cost breakdown, the 10% equity contribution, financial statements/projections, and evidence of the employment impact for Vermonters.
~12 hrs
-
3
Underwriting and approval
VEDA underwrites the loan. Smaller loans are approved internally; larger loans go to the VEDA Board at its semi-monthly meeting.
~4 hrs
-
4
Close and draw funds
Execute loan documents and draw funds for the approved fixed-asset purchase or working-capital purpose.
~3 hrs
VEDA is explicitly a gap lender — it fills the slice a bank won't cover, so come with a participating bank already at the table and your 10% equity documented. Keeping the request at or under $100,000 unlocks the higher 75%-of-project financing percentage, which can rescue a deal a bank only partly funds.
Deadline & timing
Contact VEDA staff before applying. Smaller loans receive internal approval; larger loans require VEDA Board approval at its semi-monthly meetings.
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