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Low Interest loans with deferred payments now available

Low Interest loans with deferred payments now available

In an effort to deliver much needed resources, Central Vermont Economic Development Corporation (CVEDC) and Barre Town, in cooperation with Barre Area Development (BADC) and Vermont Community Loan Fund, have modified existing loan programs to support regional businesses. We are now accepting applications for loans to businesses impacted by the economic conditions we now face.  Technical assistance in preparing your loan application is available at no cost:

Barre Town:

Eligible Borrowers

  1. Businesses located in Barre Town and Barre City
  2. For profit or non-profit businesses with up to 20 employees and annual gross sales not to exceed $1,250,000.
  3. Borrowers must demonstrate a 50% loss of revenue in any one month in March, April or May of 2020 compared to the same period in 2019.

 Loan Terms

  1. Loans between $5,000 and $15,000
  2. 2% loan origination fee up to maximum of $300. No application fee.
  3. 1% fixed interest for the term of the loan, 6 months deferred payments, with up to 5 year amortization of the loan.
  4. Personal guarantee for loans of $5,000 or less. Personal guarantee and UCC lien for loans over $5,000

The total amount of funds available from this Covid-19 program is $75,000 and applications will be accepted until December 31st, 202. Additional terms and application information can be downloaded HERE.

CVEDC:

Eligible Borrowers

  1. For profit businesses located in Washington County or the Towns of Washington, Williamstown, and Orange in Orange County.
  2. Businesses with 10 or fewer employees (not including owners)
  3. Must have been in business for a minimum of 1 year at time of application.
  4. Be able to demonstrate ability to service the loan with a plan for business operations under an economic restart.

Loan Terms

  1. Loans between $5,000 to a maximum of $50,000
  2. 1% loan origination cost. Document preparation fees waived.  Loan Application fee waived.
  3. 2% fixed interest for 6 months, payments deferred, followed by up to a 5 year term at 3.5% fixed interest.
  4. Personal guarantee of principles (20% or more ownership stake), UCC lien on business assets ($35 cost paid by borrower)

Eligible Uses

Loans can be used for working capital, renovations to support safe operations for customers and staff, inventory, and marketing.  (CVEDC can help you create or expand your digital marketing efforts at no cost to eligible borrowers).  These loan funds are unrelated to the Federal and State response, so businesses having received prior assistance are still eligible for these loans.

Application is available on-line at https://cvedc.org/wp-content/uploads/2017/08/CVEDC-RLF.pdf.  Additional information is available by contacting CVEDC’s Executive Director at jstewart@cvedc.org, or by calling (802)223-4654.

Borrowers can apply for loans from either source described above or from both to meet their needs.

We anticipate additional loan programs will be activated in the region in the coming weeks.  Updates will be posted on CVEDC’s website under the resources section as they become available.  Central Vermont Economic Development Corporation and Barre Area Development stand ready to support your business with a variety of resources, information, and access to programs.  We are here to help.

 

Start A Business Relocate A Business Expand A Business
Your Vision Is Our Mission Contact Us Today (802) 476-0660