In addition to all the wonderful aspects of starting and running your own business - doing what you love; being your own boss; being an integral and giving member of your community - there are challenges and complicated decisions to make as well. How to finance your business is often times one of the more difficult and intimidating areas to negotiate.

In order to better help you navigate all the financial options available, we have compiled a "directory" of financial and lending institutions throughout the state of Vermont. For those of you not living in Vermont, it is likely several of these institutions exist in your own state, as well.

We wish you all the luck in your business endeavor!

FSA offers two loan programs - a Guaranteed Loan program and a Direct Loan program. Under the Guaranteed Loan program, FSA guarantees loans made by conventional agricultural lenders for up to 95 percent of principal. The lender is responsible for servicing the borrower's account for the life of the loan. All loans must meet certain qualifying criteria to be eligible for guarantees, and FSA has the right and responsibility to monitor the lender's servicing activities. Farmers interested in guaranteed loans must apply to a conventional lender, which then arranges for the FSA guarantee.

Farmers ineligible for a Guaranteed Loan may be eligible for the Direct Loan. Direct Loans are made and serviced by FSA, who also provide borrowers with supervision and credit counseling. Funding for direct loans is limited, and applicants sometimes have to wait for funds to become available. To qualify for a direct farm ownership or operating loan, the applicant must be able to show sufficient repayment ability and pledge enough collateral to fully secure the loan.

Click here to view the factsheet on FSA loan programs for beginning farmers.

Farm Service Agency - State Office
Executive Square Office Building
346 Shelburne Rd., Burlington, VT 05401-4995
Phone: (802) 658-2803

In order to be eligible for an SBA loan and other assistance, you must fall under their definition of a small business - one that is independently owned and operated and is not dominant in its field; and you must meet their size standards (over 98% of businesses are considered small businesses by SBA standards).

The Vermont District Office services all 14 counties in Vermont.
87 State Street, Room 205, PO Box 605
Montpelier, Vermont 05601
Phone: (802) 828-4422; Fax: (802) 828-4485

Click here to link to the U.S. Small Business Adminstration.

Regional Revolving Loan Funds:

Local Revolving Loan Funds:

To apply for capital through SJF you must 1) meet their investment criteria; and 2) submit a business plan. Their criteria is as follows:
1) Will your firm create entry-level jobs for low-income individuals?
2) Does your business need an investment or financing of $200,000 to
$1 million or more?
3) Do you have an experienced management team or are you recruiting one?
4) Do your company's products and services have proven markets?
5) Does your company have a business plan for sustained, profitable growth?

The Sustainable Jobs Fund
115 Market Street, Suite 211
Durham, NC 27701
Phone: (919) 530-1177; Fax: (919) 530-1178; acbroughton@sjfund.com

620 Chestnut Street, Suite 560
Philadelphia, PA 19106
Phone: (215) 923-8870; Fax: (215) 923-8871; lwaddell@sjfund.com

The VCLF's loan program offers assistance to businesses that:
- Support sustainable local economies that build on the resources of communities;
- Continue and expand economically viable uses of agricultural and forest resources;
- Promote exemplary practices in the areas of environment, work force, and resource management;
- Increase economic opportunities for lower-income and/or disenfranchised Vermonters;
- Are owned by women;
- Support and are part of downtowns.

VCLF focuses its financing towards selected economic sectors and/or communities with whom there is an alliance of mission, the ability to have an impact and the potential for strong partnerships. Initially, VCLF chose to focus on businesses that add value to Vermont's natural resources, particularly agriculture and wood products. We later added those businesses operating in Burlington's Old North End Enterprise Community and women-owned businesses and businesses that are part of a downtown.

Click here to check out VCLF's Vermont Agri-tourism loan program!

Vermont Community Loan Fund
7 Court Street, Post Office Box 827
Montpelier, Vermont 05601-0827
Phone: (802) 223-1448; Fax: (802) 223-1455

Vermont Development makes business loans of all sizes, from a few hundred dollars to $25,000, or even more.

They make loans to established businesses, new businesses, and start-ups.

They lend for:
- Working capital inventory
- Financing equipment purchase
- Vehicle purchase
- Debt restructuring
- Debt consolidation

Like all their loan programs, their Small Business lending is counseling-based. They don't just tell you IF you qualify, but HOW you can qualify. In addition, they will help you:
- Get training and technical assistance to assure your success
- Develop a strong business plan
- Structure the loan to meet the specific needs of your business
- Work toward establishing a good credit history or resolving past credit problems, if necessary.

You must be a member of Vermont Development to apply for a loan, however, anyone can join!

Vermont Development Credit Union
18 Pearl Street
Burlington, VT 05401-4330
Phone: (800) 865-8328; (802) 865-3404; Fax: (802) 862-8971

Currently agriculture-based endeavors are eligible for 2 of VEDA's loan programs: Vermont Job Start and Vermont Agricultural Credit Corporation (VACC).

Vermont Job Start helps develop self-employment opportunities for low and moderate income Vermonters. Eligible Borrowers for a Vermont Job Start loan must meet eligibility criteria designed to ensure that Vermont Job Start is meeting the financing needs of low and moderate income Vermonters. There are income guidelines, based on the HUD median income for a family of four, that cannot be exceeded. In addition, potential applicants must have exhausted any conventional sources of credit that may be available, and must not have sufficient personal assets to undertake their self-employment venture. A detailed listing of eligibility criteria may be obtained by contacting the Job Start offices. Vermont Job Start loans can be used to start, strengthen or expand small businesses in Vermont. Funds may be used to purchase equipment, inventory or for working capital.

Vermont Agricultural Credit Corporation (VACC) is non-profit corporation that provides an alternative source credit to farmers who are not having their credit needs fully met by conventional agricultural credit sources. Loans are available from VACC to strengthen existing farm operations, to encourage diversification, to assist beginning farmers and to encourage marketing and processing of Vermont Agricultural products. Eligible borrowers are Vermont residents who will be engaged in agriculture within the State, can demonstrate that they are creditworthy and that their operation can generate sufficient cash-flow to service a reasonable level of debt. Loan officers for the VACC program are Charlie Keeler (802) 828-5462 and Sarah Isham (802) 828-5463.

VEDA
58 East State Street, Suite 5
Montpelier, Vermont 05602
Phone: (802) 828-5627; Fax: (802) 828-5474; info@veda.state.vt.us

Yankee Farm Credit also has special loan programs for young, beginning, and small farmers.

Yankee Farm Credit
2141 Essex Rd., Ste. 2
Williston, VT 05495
Phone: (802) 879-4700

WAgN
Women's Agricultural Network
617 Comstock Road, Suite 5
Berlinn, VT  05602
(802) 223-2389 x13
866-860-1382 (tollfree)
or wagn@zoo.uvm.edu

University of Vermont Extension and U.S. Department of Agriculture, cooperating, offer education and employment to everyone without regard to race, color, notional orgin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or familial status.