Vermont Forgivable Loan Program

The VEDA Short Term Forgivable Loan Program will provide financial assistance to businesses that continue to experience current and on-going economic harm due to the COVID-19 pandemic.

In accordance with guidelines developed by the State, VEDA will initially accept only applications from the following industry sectors and business owners:

• Travel & Tourism

• Restaurants and Eating Establishments

• Lodging

• Childcare

• Agriculture

• BIPOC owned businesses in all industry sectors

To be eligible for this program, applicants must meet all of the following criteria:

• Businesses located in Vermont with fewer than 500 employees (includes sole proprietors and not-for-profits).

• Businesses that were in operation (or had taken substantial steps toward becoming operational) as of March 13, 2020;

• Businesses that can demonstrate and attest to economic harm caused by or exacerbated by the pandemic and such economic harm is ongoing.

Determination of Loan Amount

• The FLP Calculator Tool will calculate an estimated loan amount. As directed by the legislative intent of this program, the FLP Calculator Tool places emphasis on current and on-going financial needs. Your business’ 2022 financial data is critical because the formula for the estimated loan amount places more weight on the most current financial data comparted to prior periods.

• In addition, the maximum loan will be the lesser of (1) $350,000; (2) six-months of operating expenses; or (3) the cumulative reduction in Adjusted Net Operating Income in years 2020 and 2021. 

• If a business has seasonal influences, please provide financial data from the first six-months of 2019 for a comparable period.

• Final Loan Amount will be determined by VEDA after taking all relevant information into consideration.

Loan Forgiveness

• Borrowers will have 12 months from the date of loan funding to apply for forgiveness.

• Loan Forgiveness will be determined based upon documentation submitted showing that the loan was used to pay for eligible operating expenses during the 12 months following the loan disbursement date.

• Application for loan forgiveness will be posted to this page at a later date. 

Loan Terms

• Collateral: None (Unsecured)

• Interest Rate: 0%

• Fees: None

• Personal Guarantees: Yes – from any 20% or more owner. (Does not apply to not-for-profit businesses.)

• Term: Up to 24 months with 1st 12 month no payments. If loan is not fully forgiven during initial 12 months, the loan converts to a 12-month, fully amortizing loan at 0% interest. 

• Expectation: Loan proceeds will used for eligible operating expenses, resulting in full forgiveness. 

Download a complete application package here. Submit your application and any questions to flp@veda.org.

Applicants are highly encouraged to seek technical assistance (TA) for determination of eligibility prior to applying. Information on TA provider(s) is available here.

• Application Package

• Frequently Asked Questions

• Instructional Video