On September 22, 2022

State announces new aid for struggling businesses

Governor launches short-term forgivable loan program

Gov. Phil Scott, the Agency of Commerce and Community Development (ACCD), and the Vermont Economic Development Authority (VEDA) today announced the launch of the Short-Term Forgivable Loan Program designed to support Vermont businesses experiencing continued working capital shortfalls as a result of the pandemic.

“Supporting businesses in every region of the state to recover and rebuild remains a top priority of my administration, and that’s why we worked to secure this funding from the Legislature,” said Scott. “This will help those businesses disproportionately impacted by the pandemic remain in operation, preserve jobs, and strengthen the economy.”

S.11 (Act 183) appropriated $19 million of Vermont’s American Rescue Plan Act (ARPA) allocation to provide financial assistance to eligible businesses, including sole proprietors and not-for-profits, that continue to experience economic harm due to the pandemic, up to $350,000 per applicant. To be eligible, applicants must demonstrate a reduction in adjusted net operating income of at least 22.5% in 2020 and 2021 as compared to 2019, including any funding from prior programs that were not enough to weather the ongoing economic challenges.

The program is designed to ensure the loans will be forgiven if the proceeds are used to pay for eligible operating expenses. There are no restrictions to how the funds must be spent, only that the money be used for operating costs and not capital investments. Borrowers who use the loan to pay for operating expenses such as payroll, mortgage interest, rent, and utilities will have 12 months to apply for full forgiveness.
Priority will be given to applicants from the hardest hit sectors including travel and tourism, food service, lodging, childcare and agriculture. Applications from Black, Indigenous and People of Color (BIPOC) owned businesses in all industry sectors will also be prioritized. Non-priority industry sectors will be allowed to apply after the priority period ends.

Businesses working in the arts, culture, and creative economy sectors may be eligible for a Creative Futures Grant and should visit the Vermont Arts Council webpage for information.

“The health of Vermont’s economy is dependent on the health of the small business community and the intent of this program is to help businesses with their cash flow needs to get back on stable footing so they can thrive beyond the pandemic,” said VEDA’s Chief Executive Officer Cassie Polhemus. “VEDA’s expertise in small business financing combined with our previous work in administering similar programs such as the SBA Paycheck Protection Program (PPP) positions us well to help these businesses access this money so they can continue providing the goods and services that are vital to us as consumers and to fuel the Vermont economy.”

Applications are processed on a first come, first served basis. Applicants are highly encouraged to seek technical assistance for help determining eligibility prior to applying.

Technical assistance is available through the Vermont Small Business Development Center (VtSBDC) which may be contacted directly for assistance.

Businesses are encouraged to use the application checklist to start assembling the required supporting documentation, including tax returns and a profit and loss statement for the first six months of 2022, and the FLP calculator tool to determine eligibility and estimate loan amount prior to starting an application.

The FLP calculator tool can be found on the VEDA website: veda.org.

Do you want to submit feedback to the editor?

Send Us An Email!

Related Posts

Two members, including chair, resign from the Commission on the Future of Public Education in Vermont

June 25, 2025
By Corey McDonald/VTDigger Two members of the Commission on the Future of Public Education in Vermont, including the commission’s chair, announced last week they would be resigning, saying they no longer believed their efforts would make any impact. Meagan Roy, the chair of the commission, and Nicole Mace, the former representative of the Vermont School Boards…

Vt plastic bag use dropped 91% following ban, researchers find

June 25, 2025
In the midst of 2020 Covid measures, another change took place in Vermont: A law went into effect banning businesses from offering plastic bags to customers, with paper bags only available for a fee. A 2023 analysis of a survey of hundreds of Vermonters found the law appeared to have worked. Plastic bag use in…

A Roadmap

June 25, 2025
The Vermont Legislature adjourned Monday evening, June 16, following the passage of H.454, the education reform plan. I call it a roadmap as the legislation lays out a list of changes that will take place over the next few years. And as various studies and reports come back in, there will also likely be adjustments,…

Vermont to get over $21 million in nationwide settlement with Purdue Pharma and the Sacklers

June 25, 2025
Attorney General Charity Clark announced June 16 that all 55 attorneys general, representing all eligible states and U.S. territories, have agreed to sign on to a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. This settlement was reached after the previous settlement was rejected by the U.S. Supreme Court. It resolves…