Resource Guide for Chittenden County Employers & Employees - Business Financing

Northern Vermont Lending Partners, a Small Business Administration (SBA) authorized, banks-supported revolving loan fund, is managed by EDCNV to provide short term, fixed rate loans of $35,000 or less to eligible small businesses.  All NVLP borrowers are eligible to receive technical assistance at no charge.  This assistance is available in the following areas:

• business plan development
• financial analysis
• marketing
• management
• product development
• advertising
• distribution
• operational planning
• inventory management

This MicroLoan Program can be accessed by businesses:

• located in the EDCNV operating area
• employing fewer than 10 full time employees
• having annual business receipts of less than $500,000
• seeking funding of $35,000 or less

EPSCoR connects Vermont's higher education community, the science and technology based private sector, and State government to couple high quality science and engineering in Vermont with the type of economic development that provides maximum benefit to the people of Vermont.

Small Business Innovation Research (SBIR)
Look for upcoming announcements of EPSCoR's Small Business Innovation Research (SBIR) Phase 0 program and other funding opportunities on the Web.

The Vermont EPSCoR SBIR Phase 0 program has generated impressive results for Vermont's science and technology entrepreneurs.  This program, which provides seed funds to make Vermont companies more competitive for federal research and development projects through the SBIR program, originating in Vermont and is now replicated in all the other EPSCoR states.

In 2001, 7 (78%) of the 9 SBIR Phase I (up to $100K/yr) and Phase II (up to 750K/yr) awards given to Vermont investigators went to companies which had received Phase 0 awards in previous years.  The Phase 0 program has resulted in over $8M in follow-up activity through October, 2001.

Grant Opportunities for Academic Liaison with Industry (GOALI)
The GOALI initiative funds a mix of industry-university linkages, particularly 1)  academic conducting research and gaining experience with production processes in industrial settings;  2)  industrial scientists and engineers bringing industry perspective and integrative skills to academe, and 3)  interdisciplinary university-industry teams conducting long-term projects.  GOALI targets high-risk/high-gain research, new approaches to solving generic problems, development of innovative industry-university educational programs, and knowledge transfer between academe and industry.

The GOALI program provides seed funding for faculty, post-doctoral fellows, and students to develop creative modes of collaborative interactions with industry through individual or small-group projects, and industry-based fellowships for graduate students and post-doctoral fellows.  A follow up proposal to the National Science Foundation GOALI program is required.

• Promoting financing for projects which create and retain jobs;
• Attreacting new businesses to the area, retaining, and assisting in the expansions of existing businesses;
• Benefitting all people expecially low to moderate income households;
• Providing funding needs that cannot be obtained solely from commercial lending sources.

Loan Guarantees
USDA provides loan guarantees to businesses typically seeking loans of $500,000 to $5 million dollars.  All Vermont businesses that are 51% owned by U.S. citizens are eligible to participate in the program.  A loan guarantee typically provides a business with a lower interest rate and longer loan term.  Interest rates can be fixed, variable or a combination.  USDA loan guarantees can be blended with other programs offered by other lenders such as:  Vermont Economic Development Authority, Small Business Administration and locally-based revolving loan funds.

Intermediary Relending Program (IRP)
The Intermediary Relending Program lends money to local and statewide non-profit and municipal revolving loan funds for the purpose of making small business loans.  With the exception of the City of Burlington, businesses located in all other Vermont communities that are at least 51% owned by U.S. citizens are eligible for loans in this program.  Please contact Rural Development for a current listing of organizations that provide IRP small business loans.

Rural Business Enterprise Grants
Grants can be made to cities, towns and local development organizations to provide technical assistance to small businesses or to create a revolving loan fund.  Businesses can not directly apply for grants.  All Vermont businesses are eligible for assistance in the program.  The program has financed feasibility studies, engineering studies, business planning assistance, marketing assistance and revolving loan funds for micro-business development.

Rural Business Opportunity Grants
Grants can pay for the costs of providing economic planning for rural communities, technical assistance for rural businesses, or training for rural entrepreneurs or economic development officials.  All Vermont communities are eligible to apply for assistance.  The program has financed regional economic planning studies, technical assistance for agricultural businesses and curriculum development for workforce training.

Value Added Development Grants
Grants can pay for feasibility studies or working capital to support the development of new value-added agricultural products.  Eligible applicants include independent producers, producer groups or cooperatives.  Grants are awarded annually and applications are typically solicited in June.

Programs include the 7(a) Guarantee Program, short-term financing, international trade financing, minority- and women-owned business loans, and the 504 Certified Development Company Program.

Business Lending Program
The Vermont Community Loan Fund has financed a wide variety of businesses.  Some examples of our loans include production agriculture, specialty foods, wood products, child care, and retail stores and restaurants in downtowns.  Our loans are aimed at those businesses providing benefits to low income Vermonters through livable wage jobs and revitalized communities.  Our objective is to save and create jobs through business development.

Child Care Loan Program
The Vermont Community Loan Fund has a loan program for private childcare providers in Vermont and has closed the first 21 loans.  The loans generally range from under $2,000 to $15,000 and typically carry below-market interest rates.  Loans are available, at sliding scale rates of interest, for providers who cannot obtain financing at reasonable rates and terms for:
1.  Improvements needed to meet Vermont' s Core Standard for Early Childhood Programs;
2.  Licensing requirements;
3.  Improvements to meet accessibility requirements of ADA;
4.  Renovations or additions to improve child care delivery;
5.  Purchase of equipment and materials to improve quality of service.

VDLF received operating support from the Child Care Fund of Vermont, the O.P. Edwards Foundation, and the Vermont Agency of Human Services to help launch this new initiative.  Child care grants are available on a need basis to help applicants with loan fees and to subsidize the loan interest rate.

Vermont Agritourism Loan Program
The Vermont Agritourism Program is a statewide program focused on supporting existing and new agricultural enterprises who want to invite visitors to their farm operation and, through fees and services, to add value to their farming businesses.  The program provides farmers with the skills, networks, markets and low interest loan support to be successful in adapting to this emerging opportunity.  The program has two major components:  technical assistance and a revolving loan fund.

Areas in which VDED can assist Vermont businesses include:

• exporting
• government contracting
• tax incentives for industries
• international trade
• technical assistance and permits
• training and marketing

Small Business Loan Program
VDCU offers a wide range of small business loan products, from small "microloans" of several hundred dollars to larger loans of $100,000 and more.  Loan proceeds can be used for inventory, working capital, equipment or vehicle purchase, start-up needs, or seasonal lines of credit.

The Tracker Loan Program
Some people have credit problems that prevent them from initially qualifying for a small business loan.  A VDCU lender can work with the member to develop an action plan to overcome his or her credit challenges.  VDCU can help members negotiate workouts and payment arrangements with creditors.  Once the member has demonstrated a commitment to addressing financial problems, VDCU can help them resolve delinquent credit accounts and establish or reestablish positive credit through a Tracker loan.

VEDA offers numerous programs to support its mission, including low-interest loans and loan guarantees, export finance assistance, and loans specifically tailored for farm enterprises.

Ed Delhagen, (802) 828-0040