The Economic Development Council of Northern Vermont, Inc., is a private, not-for-profit development corporation.  The Council is a U.S. Department of Commerce designated economic development district established in 1968.  Recognizing a lack of available financing for small businesses, the EDCNV established a microloan revolving fund, Northern Vermont Lending Partners (NVLP), to meet these financing needs.

GOALS AND OBJECTIVES

• To assist entrepreneurs and business owners in operating successful business concerns.
• To make limited funding more readily available to small businesses.
• To increase the number and quality of job opportunites.
• To reduce the incidence of seasonal employment.
• To upgrade labor force skills to meet the demands of technological changes.

ELIGIBILITY REQUIREMENTS

• Businesses must be located within the Vermont counties of Chittenden, Franklin, Grand Isle, Lamoille or Washington.
• Employ less than ten full-time employees.
• Gross annual receipts must be less than $500,000.
• Entire loan package cannot exceed $105,000.

LOAN PURPOSES

Northern Vermont Lending Partners will assist in the financing of machinery, equipment and working capital (inventory, supplies, accounts receivable, advertising, marketing, product development).  Funding is not available for the purchase of real estate, leasehold improvements and/or existing debt.

TERMS AND RATES

The maximum NVLP loan cannot exceed $35,000 and the total financing package cannot exceed $105,000.  The minimum loan amount is $500.  A fixed interest rate of 11% will be charged on each loan.  Terms are determined on a case-by-case basis and cannot exceed six years. A loan request of more than $15,000 requires written demonstration that financing cannot be obtained from another source.

REQUIREMENTS

Each prospective applicant must submit a written business plan.  Assistance with the development of a written business plan is available at no charge.

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

Eligible applicants pay a $100 non-refundable application fee, upon completion of a viable business plan and submission of a loan application.

TECHNICAL ASSISTANCE

As an integral part of this program, borrowers of Northern Vermont Lending Partners are eligible to receive technical assistance at no charge.  This may be provided in such areas as:

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

Northern Vermont Lending Partners is a subsidiary of the Economic Development Council of Northern Vermont, Inc.  The program is funded by the U.S. Small Business Administration in the form of a loan to the Economic Development Council of Northern Vermont, Inc. 

This microloan program is made possible, in part, through the financial participation and cooperation of:

TD Banknorth
Chittenden Bank
Citizens Bank
Community National Bank
KeyBank
Northfield Savings Bank
Peoples Trust Company
Union Bank