Recognizing a lack of available financing for small businesses, the Economic Development Council established a microloan revolving fund, MicroBusiness Loan Program, to address these financing needs.

GOALS AND OBJECTIVES

• To assist entrepreneurs and businesses in operating successful business concerns.
• To make limited funding readily available to small businesses.
• To increase the number of quality job opportunities.
• To reduce the incidence of seasonal employment.
• To upgrade the region's labor force skills to meet the demands of technological changes.
• To be a resource for problem solving and analysis.

ELIGIBILITY REQUIREMENTS

• Businesses must be located within the Vermont counties of Caledonia, Essex, Franklin, Grand Isle, Lamoille or Orleans.
• Employ less than ten full-time employees.
• Gross annual receipts must be less than $500,000.

LOAN PURPOSES

The MicroBusiness Loan Program will assist in financing machinery, equipment and working capital (inventory, supplies, accounts receivable, advertising, marketing, product development) in the amount of $35,000 or less for projects that do not exceed a total of $105,000.

Funding is not available for the purchase of real estate, leasehold improvements and/or exisiting debt.

TERMS AND RATES

The maximum MicroBusiness Loan cannot exceed $35,000 and the total financing package is limited to $105,000. The minimum loan amount is $500. A fixed interest rate of 11% is charged on each loan. Terms are determined on a case-by-case basis and cannot exceed six years.

REQUIREMENTS

Each prospective applicant must submit a written business plan, and assistance is available at no charge.

A review of the applicant's personal and business credit is performed when applications are submitted. Personal guarantees from business owners are required for all loans.

Eligible applicants are required to pay a $100 non-refundable application fee.

TECHNICAL ASSISTANCE

As an integral part of this program, all borrowers the MicroBusiness Loan Program are eligible to receive technical assistance for the term of their loan. This is provided in such areas as:

• Business Planning
• Financial Analysis
• Marketing
• Management
• Product Development
• Advertising
• Distribution
• Operational Planning
• Inventory Control