Lending Details

 

Eligibility

  • Available to agricultural, manufacturing, commercial and service businesses, including start-ups and small businesses.
  • Preference given to businesses that exhibit value-added, technology, innovation or growth orientation.
  • Borrowers must be at least 51% US Citizens or legal residents.
  • The business must be located in, or moving to, Lamoille County, Vermont.

Lending Limits

  • Minimum loan is $2,500 and maximum is $50,000 (in special circumstances this may
    be waived).
  • Maximum loan is 25% of total project cost
    (may be waived in certain cases).

Rates and Terms

  • Interest rates for loans from $2,500 to $10,000 are set at WSJ Prime +3%.
  • Interest rates for loans from $10,001 to $50,000 are set at WSJ Prime + 1%.
  • Term shall be from three to five years. For loans greater than $10,001 longer
    amoritzations shall be allowable depending on the useful life of the asset being financed. Balloon payments at the end of five years are preferred.

Loan Loss Reserve

  • For loans from $2,500 to $10,000 the applicant will be charged a Loan Loss Reserve fee of 5% of the approved loan amount, which may be financed.
  • For loans greater than $10,000 the applicant will be charged a Loan Loss Reserve fee of 3% of the approved loan amount, which may be financed.