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The Vermont Community Loan Fund believes that our local businesses are the key to our continued economic recovery.
Yes, they provide goods and services and yes, they keep our downtowns and countryside vibrant and thriving, but the most important product of any small business is quality jobs. It's a goal shared by employers and employees alike, and one we help them to achieve.
VCLF finances a wide variety of businesses ranging from production agriculture to specialty foods, energy and high-tech companies, retail stores and wood products manufacturers. VCLF loans are aimed at businesses that provide benefits to low-to-moderate-income Vermonters through livable-wage jobs and revitalized communities. Our objective is to save and create jobs through business development.
Eligibility
- Support sustainable local economies
- Conserve or expand economically viable uses of Vermont's working landscape and/or natural resources
- Increase economic opportunities for low-income, disenfranchised or underemployed Vermonters through the creation of livable-wage jobs and quality workplaces
Acceptable Uses
- Real estate mortgages
- Fixed-asset financing
- Permanent working capital
- Line of credit
- Purchase order financing
- Restructured debt
- Subordinated Debt
Rates and Terms
- The current average rate is 7%; rates are determined on a case-by-case basis.
- Terms range from several months up to 20 years, and are typically fully amortized.
- Flexibility in term, rate and repayment schedule is project-specific and based on project need and strength of proposal.
- There is an application fee of $50. And origination fee of 1% of the total loan amount and a loan documentation fee of $125 are both due at closing. Expenses incurred for the recording of collateral documentation and anticipated discharge of such documentation are also due at closing.
Collateral
- Collateral is required to include a security interest in fixed assets, inventory and receivables. VCLF may also require security in the form of personal guarantees, collateral on personal assets or a cosigner.
Maximum Loan Amount
- The current maximum loan amount will not exceed $350,000.
How to Apply
We encourage you to speak to a loan officer before submitting a loan application.
Business Loan Application (Word)
Please contact Cindy Houston, Micro-Loan and Grant Portfolio Manager, at (802) 223-4424, or by email, for more information.
You may download a complete package of application forms here:
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