Vermont may be one of the smallest states, but it has a strong and resilient small business community. From Burlington’s tech startups to family-owned farms and local shops in rural towns, entrepreneurs are the backbone of the Green Mountain State’s economy. To expand and thrive, many turn to Vermont small business loans to secure affordable and flexible financing.
This guide highlights SBA loan programs, state initiatives, and local funding opportunities for Vermont entrepreneurs.
Vermont is home to more than 77,000 small businesses, representing 99% of all companies in the state.
Agriculture, tourism, and manufacturing require significant capital investment.
SBA loans and state-backed programs help businesses grow, modernize, and recover.
Traditional Bank Loans
Vermont banks and credit unions—including Northfield Savings Bank, Community Bank, and Vermont Federal Credit Union—offer business loans with competitive rates. These generally require strong credit and financial documentation.
SBA Loans in Vermont
The U.S. Small Business Administration partners with lenders across the state. Programs include:
SBA 7(a) Loans: Up to $5 million for working capital, expansion, or refinancing.
SBA 504 Loans: Long-term fixed-rate loans for land, property, or heavy equipment.
SBA Microloans: Up to $50,000 for startups and small-town businesses.
SBA Disaster Loans: Available after flooding, storms, or other emergencies.
State and Local Financing Programs
Vermont Economic Development Authority (VEDA): Provides low-interest loans and loan guarantees for small businesses.
Vermont Agency of Commerce and Community Development (ACCD): Offers grants and support programs.
Local revolving loan funds managed by regional development corporations.
Alternative Financing Options
Business lines of credit for managing seasonal cash flow.
Equipment loans for farms, manufacturers, and tourism businesses.
Invoice factoring for businesses with long client payment cycles.
Online lenders offering fast but sometimes higher-cost financing.
Eligibility and Requirements
Most lenders in Vermont consider:
Personal and business credit history.
Tax returns and financial statements.
A business plan with revenue projections.
Collateral for larger loans.
Clear repayment strategy.
Review eligibility and credit score
Gather financial and tax documents
Write or update your business plan
Compare SBA, state, and local loan programs
Contact SBA-approved or Vermont-based lenders
Submit loan application with documentation
Await approval and funding
Agriculture and dairy farms financing equipment and land.
Tourism and hospitality businesses in ski towns and rural communities.
Manufacturers upgrading facilities through SBA 504 loans.
Local shops and restaurants leveraging SBA microloans.
SBA Vermont District Office (Montpelier) for SBA loans and guidance.
Vermont Economic Development Authority (VEDA) for state-backed loans.
Vermont Agency of Commerce and Community Development (ACCD) for grants and incentives.
Vermont SBDC network for consulting and loan preparation.
Applying without a detailed business plan.
Overlooking state programs like VEDA.
Borrowing more than projected cash flow allows.
Ignoring SBA disaster loans after floods or storms.
Expanded funding for green energy and sustainable businesses.
Growth in state programs for rural entrepreneurs.
More online SBA lending platforms for faster approvals.
From Burlington’s tech startups to family farms and tourism companies in rural towns, Vermont small businesses have access to diverse financing solutions. SBA loans, state programs like VEDA, and local revolving loan funds provide the capital needed for growth and resilience.
Ready to secure funding? Contact the SBA Vermont District Office, explore VEDA programs, and connect with your local SBDC. With the right strategy, your Vermont business can thrive.