C.V.E.D.C. Certification

Eligible Borrowers

Eligible Use of Proceeds

Ineligible Use of Proceeds

Typical Loan Term

Collateral

Approval Process

SBA 504 Loan Application Forms

"The Money That Makes America Work"

Call CVEDC at 1-888-769-2957

C.V.E.D.C. CERTIFICATION

Our corporation is 1 of 3 SBA Certified Development Companies in the State of Vermont to offer financing through the SBA 504 Loan Program.

A Certified Development Company (CDC) is a non-profit corporation engaged in economic development within the region it serves, working with the SBA and local lenders to provide financing for small businesses. Central Vermont Economic Development Corporation (CVEDC) serves all of Washington County and three towns in Orange County, Vermont.

The 504 Loan Program is designed to enable growing businesses to create and retain jobs with long-term, fixed-rate financing, which is generally 1% or more below the current market rate.

Central Vermont Economic Development Corporation currently has a loan portfolio exceeding $4.5 million.

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

C.V.E.D.C.’s portfolio includes a wide variety of borrowers including, but not limited to, manufacturers, hotels/motels, professional service companies, retail stores and health care facilities.

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.

504 loan proceeds cannot be used for the following:

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

• The borrower contributes a minimum of 10% of the project cost or appraised value, whichever is less.
• C.V.E.D.C. 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 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.
  
  

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

CVEDC issues preliminary approval within 30 days 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 C.V.E.D.C.

The first step in the SBA 504 loan process is contacting CVEDC to discuss your project. Please call us toll free at 1-888-769-2957 or 802-223-4654. Once your project has been discussed, all parts of the application must be filled out and returned to: Richard Angney, Executive Vice President, CVEDC, PO Box 1439, Montpelier, VT 05601-1439 or [email protected]. (Please note that all forms below are in PDF format. Acrobat Reader is necessary to view and print the 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