Resource Guide for Chittenden County Employers & Employees - Business Financing

Northern Vermont Lending Partners (NVLP), 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.

USDA, Rural Development business programs help fund projects that create or preserve quality jobs and promote a healthy rural environment.

Loan Guarantees
USDA provides loan guarantees to businesses up to $25 million dollars. Local approval up to $7.5 million insures timely turn- around. All Vermont businesses that are 51% owned by U.S. citizens (or permanent resident aliens) are eligible to participate in the program. Equity and collateral requirements do apply. A loan guarantee typically provides a business with a lower interest rate and longer term thereby providing more free cash flow. Rates can be fixed or variable. Fully amortizing loans (no balloon-payments) reduces risk and costs for business that might have to face refinancing. USDA guarantees leverage with programs offered by the Vermont Economic Development Authority, the US Small Business Administration and locally-based revolving loan funds.

Rural Business Enterprise Grants
Grants can be made to cities, towns and local development organizations (like CEDO) to fund problem-solving activities (technical assistance) for small businesses. Examples include: Funding feasibility studies, providing specialized training to business owners and studying new product and market opportunities. In some cases, funds can also be used to establish revolving loan funds.

Value Added Producer Grants
Grants can be awarded directly to farmers, independent producers, cooperatives and ag producer groups to fund planning activities (business plans, feasibility studies) or to fund working capital to launch the development of new value-added agricultural products. Grants are awarded annually and applications are typically solicited in March.

9006 Renewable Energy and Energy Efficiency Grants
Grants can be awarded directly to small business owners and farmers to assist in funding eligible project costs related to the purchase and installation of qualified renewable energy systems (solar, wind, bio-gas, geothermal, wind) and energy efficiency improvements (lighting, HVAC, refrigeration plus others). Renewable energy grants can pay for up to 25% of eligible project costs or $500,000, whichever is less. Energy efficiency grants can pay for up to 25% of eligible project costs or $250,000, whichever is less. USDA grants can be combined with other State, local or Federal programs to provide even greater savings and payback.

9006 Renewable Energy and Energy Efficiency Loan Guarantees
Loan guarantees can be issued to banks to pay for up to 50% of total qualified project costs. The maximum loan guarantee is $25 million, and local approval authority of $7.5 million insures timely approval. Loan guarantees can be combined with the 9006 grant program to fund up to 50% of total project costs.

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 and business development center for childcare providers in Vermont. The loans generally range from under $25,000 to $75,000 and typically carry below-market interest rates. Loans are available for providers who cannot obtain financing at reasonable rates and terms for:
1. Improvements needed to meet Vermont’s Core Standards for Early Childhood Programs;
2. State regulatory requirements;
3. Improvements to meet accessibility requirements of ADA;
4. Facility purchases, renovations or additions to improve programs or increase capacity;
5. Purchase of equipment and materials to improve quality of service.

Vermont Agritourism Loan Program
The Vermont Agritourism Program is a statewide program focused on supporting existing and new agriculture enterprises who want to invite visitors to their farm, and through fees and services, to add value to their farming businesses. The program provides farmers with low-interest loan support, helping them adapt to this emerging opportunity. Loan rates are between 3-5%.

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
OPPSVT offers a wide range of small business loan products, from small “micro-loans” 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. An OPPSVT lender can work with the member to develop an action plan to overcome his or her credit challenges. OPPSVT can help members negotiate workouts and payment arrangements with creditors. Once the member has demonstrated a commitment to addressing financial problems, OPPSVT 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.

The staff is interested in meeting and talking with anyone who has an idea that may create opportunities for Vermont businesses. If an idea meets the above criteria, the Fund’s staff will work with the applicant to prepare an application. The Board of Directors is the final approval authority.

The Jobs Fund is also interested in partnering with other businesses and organizations to develop new products, value-added markets, and better business practices to give Vermont businesses competitive advantages in the global marketplace.