Business Loans


Addison County Economic Development Corporation operates several Revolving Loan Funds to help fulfill its mission of helping businesses in all stages of growth retain and create good paying jobs in Addison County. ACEDC provides fixed rate loans to businesses of between $5,000 – $100,000. As loans are repaid, they are reinvested in the community by ACEDC in the form of new loans to other businesses. 

 

ACEDC’s Revolving Loan Fund Application Package is available for downloading here.

ACEDC also works with other financial partners ranging from local banks to the Vermont Economic Development Authority (VEDA) as well as private and alternative lenders. For more information or assistance, contact Robin Scheu, Executive Director, at 802-388-7953.

Download our new business guide: Doing Business in Addison County: a guide to starting, expanding, or relocating your business

ACEDC Revolving Loan Funds

ACEDC’s revolving loan funds come primarily from the USDA Rural Development Intermediary Relending Program. ACEDC’s loan fund is different from conventional lending programs because it can finance businesses that are having difficulty obtaining traditional financing due to the unproven nature of their business, their small size, collateral situation, or unconventional product line.

Who Qualifies for ACEDC’s Revolving Loan Fund?

Funds are available for both existing and start-up businesses.  ACEDC works with local banks and other financial institutions, often serving as the “gap financing” piece to help meet the unmet funding needs of area businesses. Loans are available for a wide range of initiatives as described below. ACEDC is an equal opportunity lender, with funds available on a non-discriminatory basis.

What Can I Use ACEDC’s Revolving Loan Fund For?

Loans must be used for community development projects, the establishment of new businesses, expansion of existing business, creation of employment opportunities, or saving existing jobs.

Loans may be used for, but are not limited to:

  • Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities
  • Business construction, conversion, enlargement, repair, modernization, or development
  • Purchase and development of land, easements, rights-of-way, buildings, facilities, leases, or materials
  • Equipment purchases, leasehold improvements, machinery, or supplies
  • Pollution control and abatement.
  • Transportation services
  • Start-up operating costs
  • Feasibility studies
  • Working capital (long term)

What Are Ineligible Purposes for ACEDC’s Revolving Loan Fund?

Loans from ACEDC may not be used for:

  • Lines of credit
  • Agricultural production
  • Refinancing existing debt (except in limited circumstances)
  • Golf courses or race tracks

What Are The Rates and Terms of These Loans?

Interest rates are fixed for the term of the loan. The rate for each loan is set by the Loan Committee and based on consideration of such things as collateral coverage and other risk factors.

The term of a loan will vary depending upon the use of funds, but are typically 3-10 years in length. Loans for building or land purchase may have longer terms.

ACEDC will finance up to 40% of a project, not to exceed $100,000. Typically, a bank or other lender will finance 50% of the project and the remaining 10% will be in the form of owner equity.

A non-refundable $100 application fee is required at the time of application. If the loan is approved, a 1% commitment fee is required and additional closing costs may apply.

How Do I Apply for a Loan?

ACEDC’s Loan Application Package is available for downloading here.  Revolving Loan Fund Application Package.  A nonrefundable fee of $100 is due at the time of application. As with other lenders, ACEDC’s Revolving Loan Fund requires the development of a sound business plan clearly describing the business and the proposed use of the new funds. The plan should address the industry and its trends, the market, and the company’s management and operations. Historical financial information is also required along with projected operating results.

How Long Will It Take to Get A Loan?

Once your application is determined to be complete, a loan analysis is conducted and then the Loan Committee will meet to consider your request. If your loan is approved, a commitment letter will be sent to you that same day. Once we have received your signed commitment letter agreeing to the terms and conditions of your loan, our attorney will prepare closing documentation and we will arrange for your loan closing. Additional documents will be required of you prior to or at the closing, such as a Certificate of Good Standing and Insurance Binder. A relatively straightforward loan may take 2-3 weeks to close once we have your completed application. A more complex loan may take 3-6 weeks or more.

What If I Have More Questions?

If you have additional questions after you’ve reviewed the loan application, please contact Robin Scheu, Executive Director, at 802-388-7953.

 

ACEDC is an equal opportunity lender, with funds available on a non-discriminatory basis.

Funds for these loan programs have been provided by USDA Rural Development.

 

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