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Are you looking for Vermont’s best business loans & startup financing companies? For your small business in Green Mountain State, many banks, credit unions, & unconventional lenders are offering different loan types. Did you know that there are 80k small businesses in Vermont, and 77.4% of them are operated by solopreneurs (i.e., the founder being the lone employee)?

Understand the unique features and benefits of different loan types to empower your business. That’s how you choose the best lender for your business. Also, look into no-credit equipment financing options if you can’t get a business loan via traditional means.

Consider these 11 business loans & startup financing options in Vermont to get started. Check our reviews of these lenders to decide which one’s the best option for you:

1. Swoop Funding

Swoop Funding is every Vermont-based small company’s top startup financing option. It will offer entrepreneurs a range of funding solutions to meet their needs. You can access many loan types, including traditional term loans and innovative financing options with a simplified funding process. At Swoop Funding, you can get $5k to $500k as a small business. 

Even if it’s been 6 months since you started this business, Swoop will consider your loan application! It is important to talk directly to Swoop’s experts to determine your creditworthiness, though.

2. Northfield Savings Bank

NSB claims to be the largest local bank in the state of Vermont. They have over 150+ years of experience in this field. So, if you need to apply for SBA 7(a) or 504 loans via a reliable lender, you should contact the Northfield Savings Bank. Make sure that you have understood the different terms & conditions of this lender. Only then you’ll be able to determine if this lender is the perfect solution for your diverse & unique corporate funding needs.

3. Heritage Family Credit Union

This credit union deserves the #3 spot on our list because of its incredibly low average interest rate (3.54%). However, the loan amount available here is $155,000. This CU operates not merely in Vermont but in New York, New Hampshire, and Massachusetts as well. If you need quick cash for your business operations, then get in touch with Heritage Family Credit Union.

4. Community National Bank

At the Community National Bank, you’ll get an average interest rate of more than 4.90%. The loan amount is over $188,000 (on average). Even though this lender is based in Kansas, it does cater to clients in the Green Mountain State. You can easily apply for commercial loans to invest in real estate, purchase business equipment, acquire another business, or hire more workers.

5. National Bank of Middlebury

This bank has been serving Vermont-based clients since 1831. If you must apply for term loans or open a new line of credit, you should get in touch with the National Bank of Middlebury. It is an ideal lender for small businesses looking for commercial real estate loans, too. This bank will offer you revolving lines of credit as well. Talk to their customer service department and see what else they have in store for Vermont-based startups.

6. Vermont Economic Development Authority

At the Vermont Economic Development Authority (VEDA), the interest rate is a little over 4.00% (on average) but the average payout amount is $161k. Also, you’re only eligible if the net worth of your business is less than $15 million. The maximum non-manufacturing SBA 504 loan is $5 million. Certain small manufacturers are eligible for up to $5.5 million in SBA 504 financing. This funding is available under Vermont 504 Corporation, by the way.

7. Opportunities Credit Union

Based in Vermont, this credit union helps local businesses get the much-needed financial help to stay afloat in this economy. So, your small business can apply for funds to purchase inventory and business assets. These funds will also help you get your hands on working capital or open a new line of credit.

8. Mascoma Bank

At the prestigious Mascoma Bank, you can get $220,000+ on average as a loan. The interest rate is pretty tame (4.24%). Also, this lender operates in Maine, Vermont, and New Hampshire. So, you can get local financial assistance from the Mascoma Bank.

9. North Country Credit Union

You should also look into North Country Credit Union where generous loans are offered to small businesses based in Vermont. So, you may borrow up to $5 million at a fixed interest rate and choose a repayment period of up to 10 years for machinery and equipment, or up to 25 years for real estate. However, the interest rate is more than 6.00% while the approved loan amount is $74,000. But this credit union is based in Burlington, Vermont.

10. Vermont Federal Credit Union

Like always, we’re mentioning the Green Mountain State’s very own FCU. with the average rate of interest here being 4.77%, 88,000 USD is the average loan amount you’ll get from this lender. You can apply for term loans, open a new line of credit, take out commercial mortgage loans, or simply apply for SBA loans.

11. Union Bank of Vermont and New Hampshire

As the name of this lender indicates, Union Bank financially supports enterprises located in New Hampshire & Vermont. But the interest rate is over 5.00% (on average) while the average loan amount approved by this lender is $43k (probably the lowest in the entire US). So, if nothing is panning out, you can get in touch with this lender.

Vermont Government Resources

Check out these government resources about business grants/funding and startup financing options in Vermont:

• Funding, Capital, and Incentives
• Rural Business Development Grants in Vermont and New Hampshire
• Grants & Loans in Brattleboro, Vermont
• Funding Financing | Office of Business Development

Top Cities in Vermont for Business Loans

Curious to know which cities or census-designated places (CDPs) in Vermont are the best for business loans & startup financing? If you live in any of these 30 cities, then you can easily access SBA loans or other nontraditional financing means to embark on your entrepreneurial journey:

1. Burlington
2. South Burlington
3. Montpelier
4. Rutland
5. Essex Junction
6. Barre
7. Winooski
8. Stowe
9. Brattleboro
10. Bennington
11. Williston
12. Newport
13. Middlebury
14. Springfield
15. Fairfax
16. St. Albans
17. Shelburne
18. Swanton
19. Richford
20. Hartford
21. Morristown
22. Milton
23. Lyndonville
24. Derby
25. Northfield
26. Montgomery
27. West Rutland
28. Poultney
29. New Haven
30. Orleans

Conclusion

Whether you’re a startup owner or founded a well-established business years ago, you have to choose the right financing partner and lender. That’s how you keep your business vessel afloat and key commercial operations running in Vermont in this economy.

Now, choose a lender that offers you flexible loan terms and interest rates. Check their online reputation, customer service, interest rates, and other factors. If something needs to be clarified, get in touch with Sophisticated Investor to understand how to get your entrepreneurial dreams funded quickly. That’s how you can take your business to new heights of success.