Vermont Small Business Loan Programs in 2026: What's Available

Vermont's main state business lender is the Vermont Economic Development Authority (VEDA), which offers the Direct Loan Program (up to $5 million), the Small Business Loan Program (up to $1,000,000) and the Entrepreneurial Loan Program for start-up and early-stage companies. Vermont businesses can also get SBA-backed 7(a), 504 and microloans through local lenders, with help from the SBA Vermont District Office.

$5 millionIts Direct Loan Program lends up to $5 million for real estate and equipment, its Small Business Loan Program lends up to $1,000,000 to growing small businesses that can't get enough conventional financing, and its Entrepreneurial Loan Program serves businesses in the seed, start-up and early growth stages.
$1,000,000Its Direct Loan Program lends up to $5 million for real estate and equipment, its Small Business Loan Program lends up to $1,000,000 to growing small businesses that can't get enough conventional financing, and its Entrepreneurial Loan Program serves businesses in the seed, start-up and early growth stages.
10%Your own money in the deal: the Direct Loan and Small Business Loan programs require the borrower to put in at least 10% of the project cost.

Vermont doesn't have one single small business loan. The main state lender is the Vermont Economic Development Authority (VEDA), which lends directly to businesses and also works alongside banks and credit unions. Its Direct Loan Program lends up to $5 million for real estate and equipment, its Small Business Loan Program lends up to $1,000,000 to growing small businesses that can't get enough conventional financing, and its Entrepreneurial Loan Program serves businesses in the seed, start-up and early growth stages. Federal SBA loans are also available through Vermont lenders, and the SBA Vermont District Office serves all 14 counties.

Last checked: November 2, 2026. This page explains the rules only. It is general information, not legal, tax, or financial advice.

The short version

Direct Loan Program	for buying land and buildings, new construction or renovation, and machinery, equipment, furniture and fixtures. It's used together with bank financing.
Small Business Loan Program	for fixed assets or working capital, for small businesses that are unable to get adequate conventional financing.
Entrepreneurial Loan Program	for working capital and capital assets of Vermont-based businesses in seed, start-up or early growth stages that can't get conventional financing.
Vermont Capital Access Program (VCAP)	your bank makes the loan and enrolls it in a loss reserve fund matched by VEDA. The bank sets the rate and terms.
Vermont Loan Participation Program	funded by the federal State Small Business Credit Initiative (SSBCI). VEDA works with lending partners, often in a subordinate position.
Farms and forestry	the Vermont Agricultural Credit Corporation (VACC), a program of VEDA, makes farm ownership and farm operating loans.
Your own money in the deal	the Direct Loan and Small Business Loan programs require the borrower to put in at least 10% of the project cost.
SBA loans	7(a), 504 and microloans are made through lenders, not by the SBA directly.

Who qualifies

Direct Loan Program: individuals, partnerships, corporations or LLCs in manufacturing, processing, warehousing, research and development, recycling, travel and tourism, information technology, multi-unit housing construction (at least five units) and other businesses defined in Vermont law.
Small Business Loan Program: owners must meet a U.S. citizen ownership rule (see the FAQ), be unable to access conventional credit, and show potential to create or keep jobs for Vermonters.
Entrepreneurial Loan Program: sole proprietorships, partnerships, corporations and LLCs located in Vermont, in seed, start-up or early growth stage, that don't meet the underwriting criteria of other financing sources.
Vermont Capital Access Program: a corporation, partnership, joint venture, sole proprietorship, cooperative or other entity, for-profit or nonprofit, authorized to do business in Vermont, borrowing through a participating bank.
VACC: Vermont residents engaged in agriculture or forest products businesses in the state, including beginning farmers.

What the money can't be used for

Direct Loan Program	VEDA can't finance or refinance existing company assets or debt.
Small Business Loan Program	proceeds can't be used to refinance existing debt or for lines of credit.
Vermont Capital Access Program	not for building or buying residential housing, passive real estate ownership, or refinancing a loan from the same bank that wasn't already enrolled.
Vermont Loan Participation Program	not for passive real estate investment, speculative activities, gambling or pyramid sales.

How to get it

How to get started

Decide what the money is for: real estate, equipment, working capital or a start-up. Each VEDA program has its own uses and limits.
Talk to your bank or credit union. VEDA's Direct Loan Program works alongside bank financing, and VCAP and SBA loans are made by lenders. SBA's Lender Match tool can connect you with a participating SBA lender.
Call VEDA at 802-828-5627 before you apply. VEDA advises applicants to discuss their project with its staff before submitting an application.
Apply online or download the application from VEDA's website. Applications are also available at VEDA's offices in Montpelier, Burlington and Middlebury.
Plan for the review. Some VEDA loans are approved by staff, and others go to the VEDA Board at its regular meetings.
Ask the SBA Vermont District Office for free help. It can connect you with its partner organizations, lenders and community groups.

Programs that may match

Look beyond Vermont's state programs

SBA microloans for smaller amountssee SBA microloan requirements.Buying real estate or major equipmentsee how much down payment an SBA 504 loan needs.Buying an existing businesssee using an SBA loan to buy a business.Find other programs you may qualify for with FundPlenty's free match at fundplenty.com.

FAQ

What is VEDA?

The Vermont Economic Development Authority. It offers low-interest loan programs that often fill the financing gap for a commercial start-up or expansion project, working either directly with a business or with a commercial lender.

How much can I borrow from VEDA's Small Business Loan Program?

Up to $1,000,000 for fixed assets or working capital. As a general rule, a working capital loan may not exceed 50% of the project cost and a fixed asset loan may not exceed 40%, but loans of $100,000 or less may cover up to 75%. Borrowers must be U.S. citizens or 51%-owned by U.S. citizens and must put in at least 10% of the project cost as equity.

Does Vermont offer start-up business loans?

Yes. VEDA's Entrepreneurial Loan Program page lists a maximum loan of $500,000 ($350,000 for loans that need an SBA guarantee). VEDA may fund up to 90% of the project cost, and the borrower must keep operating in Vermont for at least five years after funding or repay the loan in full.

How big can a VEDA Direct Loan be?

Up to $5 million, or $6 million for certain energy-related projects. VEDA may not fund more than 40% of the project cost. Typically a bank lends 50% and the borrower provides the remaining 10%.

What fees does VEDA charge?

For its commercial loan programs, VEDA lists a 1% commitment fee on loans of $1,000,000 or less (maximum $5,000), a 0.5% commitment fee with no cap on larger loans, a minimum commitment fee of $250 and a $30 credit report fee. Interest rates change with the market, so call VEDA for current rates.

How does the Vermont Capital Access Program work?

Your bank makes the loan and enrolls it in a reserve fund paid for by premiums from the borrower and/or the bank and matched by VEDA. The loan must have a principal balance of $500,000 or less, and the bank sets the rate, term, down payment and collateral.

Who qualifies for the Vermont Loan Participation Program?

Businesses with fewer than 750 employees worldwide, total project financing under $20 million, and a business-purpose loan that isn't for passive real estate investment. The program is funded with $29 million from the U.S. Treasury's State Small Business Credit Initiative.

What SBA loans can Vermont businesses get?

SBA 7(a) loans up to $5 million, 504 loans up to $5.5 million for major fixed assets, and microloans up to $50,000. You apply through a lender, and the SBA Vermont District Office can help you find one.