Central Vermont Economic Development Corporation

Eligible Borrowers

Eligible Use of Proceeds

Ineligible Use of Proceeds

Typical Loan Term

Collateral

Approval Process


SBA 504 Loan Application Forms

SBA 504
Loan Program: "The Money That Makes America Work"; Call CVEDC at 1-888-769-2957

CVEDC works jointly with the Vermont Economic Development Authority (VEDA) 504 Corporation to assist you with financing. Let us help you get started!

ELIGIBLE BORROWERS

Most for-profit businesses, excluding those engaged primarily in investment for speculation, education or gambling, are eligible to apply for a 504 loan.

ELIGIBLE USE OF PROCEEDS

504 loan proceeds must be used for fixed asset projects such as:

Purchase of land or an existing building.

Construction of a new building.

Improving an existing building, including: grading, street improvements, utilities, parking lots and landscaping.

Purchase of machinery and equipment.

Associated project costs including professional fees such as legal, architectural/engineering and accounting.

INELIGIBLE USE OF PROCEEDS

504 loan proceeds cannot be used for the following:

Working capital;
Inventory;
Colsolidation or repayment of debt; Refinancing.

TYPICAL LOAN TERMS

The borrower contributes a minimum of 10% of the project cost or appraised value, whichever is less.
VEDA contributes a maximum of 40% of the project costs or appraised value, whichever is less, with a 10 to 20 year term. The maximum loan amount is $1.5 million.
A bank finances a maximum of 50% of the project costs or appraised value, whichever is less, with a negotiable interest rate for a 7 to 20 year term.

COLLATERAL

The assets of the project being financed are typically used as collateral. In addition, personal guarantees of the principal owners are required.

APPROVAL PROCESS

Approval is issued As Soon As Possible upon receipt of the financial package from the borrower or participating bank.

The SBA issues final approval within 30 days upon receipt of the borrower’s application from VEDA.

SBA 504 Loan Application Forms


Form #1244 Form #912 Form #413 Form #160 Form #4506 Form #1624 Colsons Form FEMA Form The following SBA 504 application forms are in Microsoft Word Format.
(If needed, please contact us for a different format.)
Fee Acknowledgment Application Supplement Environmental Questionnaire