Vermont small business grants, loans and training funds (2026)

What each Vermont program actually pays

Before you apply, sort the program into one of these groups:

• Repayable credit from VEDA. The Vermont Loan Participation Program (SSBCI), the Vermont Small Business Loan Program, the Entrepreneurial Loan Program and the Vermont Capital Access Program ⁠²⁠⁴⁠⁵⁠⁶.
• Equity, not debt or grants. The Vermont Venture Capital Program invests SSBCI money through five private funds, and those funds take an ownership stake ⁠¹.
• Reimbursement grants for specific costs. The Vermont Training Program, STEP for exporters and the Elevate Vermont SBIR/STTR match ⁠⁷⁠⁸⁠⁹.
• Competitive grants for one sector. The Working Lands Enterprise Initiative funds farm, forest and some food businesses ⁠¹⁰.
• A performance incentive for expansions. The Vermont Employment Growth Incentive (VEGI) pays cash only after you hit job and payroll targets ⁠¹².

How VEDA uses Vermont’s $57.9 million in SSBCI money

Treasury’s SSBCI list (data current as of August 25, 2026) shows three Vermont programs, all with VEDA as the contact: the Vermont Loan Participation Program, the Vermont Equity Capital Program (Direct) and the Vermont Equity Capital Program (Funds) ⁠³. VEDA applied half of the $57.9 million to loans and half to venture capital ⁠¹.

The Loan Participation Program has $29 million. It is not a separate loan product you apply for. VEDA uses it to strengthen its regular commercial, agricultural, forestry and energy loans, often taking the subordinate position behind a bank so the deal works ⁠². VEDA states plainly that these are loans, not grants, and must be repaid on standard terms ⁠². To qualify for SSBCI:

• Total project financing must be under $20 million, and the borrower must have fewer than 750 employees worldwide ⁠².
• The loan must be for business purposes, not passive real estate investment. An owner-occupant may lease up to 49% of an existing building, or 40% of a new one, to tenants ⁠².
• Other financing for the same purpose cannot be an SBA-guaranteed, USDA Rural Development-guaranteed or SBA 504 loan. Those loans are allowed for other purposes ⁠².
• A refinance qualifies only if the new debt is at least 150% of the old balance and does not fund an extraordinary dividend ⁠².

The Vermont Venture Capital Program placed $28.9 million with five managers: FreshTracks Green Mountain Fund, Features Capital SSBCI Fund, Green Mountain Accelerator Fund, Hula Community Partners Fund and RDF Ventures ⁠¹. As of June 30, 2026, these funds had invested $6 million in 26 companies, an average of $232,404 each. That money drew in more than $40 million of private investment ⁠¹. VEDA announced the first round in 2024 and says the final round’s allocation will be announced later ⁠¹. You pitch a fund manager, not VEDA, and give up equity.

VEDA’s direct loans for businesses banks turn down

Scroll the table sideways to see every column.

Small Business Loan Program terms run five to seven years for equipment, up to ten years for real estate (usually on a 20-year amortization) and three years at most for working capital. Proceeds cannot refinance debt or fund lines of credit ⁠⁴. Borrowers must be U.S. citizens or 51% owned by U.S. citizens and show they will create or retain jobs for Vermonters ⁠⁴. For Entrepreneurial Loan Program loans, VEDA may take mortgages, equipment liens, customer contracts or a security interest in your technology. Anyone owning 20% or more usually signs a personal guarantee ⁠⁵. Under VCAP, your bank sets the rate, term and collateral. Only banks that have signed a master agreement with VEDA can enroll loans ⁠⁶.

The Vermont Training Program: half of the training bill

The Vermont Training Program (VTP), run by the Agency of Commerce and Community Development (ACCD), is the most widely usable grant for Vermont employers. It is open to every sector, with priority for target sectors such as advanced manufacturing, food systems, forest products, health care, software and clean energy ⁠⁷. VTP pays up to 50% of trainee wages for on-site training, or up to 50% of the trainer’s or vendor’s fees for classroom training. It does not pay for travel, materials, equipment, consulting or course development ⁠⁷.

The conditions are strict:

• Trainees must be full-time, permanent employees working in Vermont. Pre-employment training counts only with a guaranteed hire afterward ⁠⁷.
• At the end of training, each trainee must earn at least the livable wage set by the Legislative Joint Fiscal Office. The VTP page lists the 2024 figures: $19.53 an hour in Chittenden County and $17.68 an hour in all other counties ⁠⁷.
• Employees must get at least three benefits from a list that includes employer-paid health insurance (50% or more of the premium), dental, paid vacation, paid holidays, child care and retirement ⁠⁷.
• The grant agreement must be signed before training begins, and VTP money cannot replace training you would fund anyway or duplicate other state or federal training funds ⁠⁷.

Applications are rolling, and reviews usually take 18 business days ⁠⁷.

Targeted grants: Working Lands, Elevate Vermont and STEP

Working Lands Business Enhancement Grant. This grant is now open and pays $10,000 to $50,000 with no match requirement. The FY27 round has $508,000 available ⁠¹⁰. It covers farms producing food or fiber, logging and sawmill businesses, wood and farm product truckers, secondary wood businesses, and food businesses that source at least half their raw ingredients from Vermont ⁠¹⁰. You need at least one year of operating history and a 2025 profit-and-loss statement. Past grantees must sit out three fiscal years ⁠¹⁰. Applications are due in WebGrants by December 10, 2026 at 2:00 p.m. Decisions come in late February or early March 2027, and projects start in April 2027 ⁠¹⁰. Competition is heavy. In fiscal 2026, Working Lands received 169 applications asking for $6,098,779 and could fund 34 awards totaling $1,047,320 ⁠¹¹.

Elevate Vermont SBIR/STTR Matching Grant. Act 74, in effect since July 1, 2022, lets ACCD give non-competitive matching grants of up to $50,000 to Vermont-based for-profit firms that already hold a federal SBIR or STTR Phase I or Phase II award ⁠⁸. The money covers commercialization costs the federal award cannot pay for, such as marketing and sales materials. Projects run six months or less, and travel is capped at 10% of the budget ⁠⁸. Firms with more than three prior Phase II awards are not eligible, and no firm can receive more than five matching grants in its lifetime ⁠⁸. First-time SBIR/STTR applicants can also get free help from a specialist consultant through Elevate Vermont ⁠⁸.

STEP export grants. ACCD reimburses up to 75% of pre-approved export costs, up to $30,000 a year across as many as four activities. You put up a 25% cash match ⁠⁹. Eligible costs include trade show booths, foreign trade missions, ExporTech training, website localization and product certifications such as CE marking. Printing is not eligible ⁠⁹. You must have been in business at least one year, have employees in Vermont, sell products with at least 51% U.S. content and have an export plan ⁠⁹. ACCD pays only after it pre-approves the activity and only while funds last, so file Part A before you book anything ⁠⁹.

VEGI and other programs that are not startup money

• Vermont Employment Growth Incentive. VEGI pays cash, not a tax credit, to businesses that expand or relocate and add qualifying jobs, payroll and capital investment beyond normal growth ⁠¹². Payments come in five annual installments after you meet each year’s targets. You must apply before deciding to go ahead with the project, and the Vermont Economic Progress Council (VEPC) reviews applications on the last Thursday of each month ⁠¹².
• Closed flood and recovery grants. The Business Emergency Gap Assistance Program (BEGAP) for flood-damaged businesses has ended. So have ACCD’s ARPA-funded Capital Investment Program ($10,580,000) and the Community Recovery and Revitalization Program ($40,000,000) ⁠¹⁵. Lists that still show them are out of date.
• Farm & Forest Viability Program. The Vermont Housing & Conservation Board pairs farm, food and forest businesses with business advisors. The service is free after a $75 enrollment fee. Owners must be year-round Vermont residents with at least two years managing the business and $15,000 or more in gross sales ⁠¹⁴.

A working order for Vermont applicants

1. Book a VtSBDC advisor

   Advising is free and confidential. If you are still starting out, VtSBDC first asks you to attend its no-cost Starting Your Own Business workshop, held virtually each month, and answer a short intake ⁠¹³.

2. Call VEDA before filling out a loan form

   VEDA asks applicants to talk through the project with staff first (802-828-5627). Ask whether your bank loan can be paired with an SSBCI participation or enrolled in VCAP ⁠²⁠⁴⁠⁶. Some loans are approved internally; others go to VEDA’s board, which meets twice a month ⁠⁴.

3. If you hire or upskill, contact VTP before any training starts

   Have each trainee’s wage, full-time status and benefits ready, plus the training provider’s quote. Training that starts before the agreement is signed is not covered ⁠⁷.

4. Farm, forest or food businesses: apply for Working Lands by December 10, 2026

   Register in WebGrants now, since registration can take up to two business days. Ask Clare Salerno (802-917-2637) for a free planning session with a Viability Program advisor ⁠¹⁰.

5. Technology firms: line up Elevate Vermont

   Use the free SBIR/STTR technical assistance before you submit to a federal agency. After you win an award, file the matching grant application with your award notice, narrative, budget and timeline ⁠⁸.

6. Exporters: file STEP Part A first

   Send a W-9, your conflict-of-interest policy and proof of insurance. After the activity, file Part B with paid invoices ⁠⁹.

7. If you are turned down, adjust and try again

   A VEDA decision is a credit decision, so ask what would change it. A Working Lands applicant who loses can reapply in the next fall round. Grantees are the ones who must sit out three fiscal years ⁠¹⁰⁠¹¹.

For other Vermont assistance, see the Vermont overview, or compare states on the small business grants hub.