§ 280bb. Vermont Entrepreneurial Lending Program
(a) There is created the Vermont Entrepreneurial Lending Program to be administered by
the Vermont Economic Development Authority. The Program shall seek to meet the working
capital and capital-asset financing needs of Vermont-based businesses in seed, start-up,
and growth stages. The Program shall specifically seek to fulfill capital requirement
needs that are unmet in Vermont, including:
(1) loans to manufacturing businesses and software developers with innovative products
that typically reflect long-term, organic growth;
(2) loans up to $1,000,000.00 in growth-stage companies that do not meet the underwriting
criteria of other public and private entrepreneurial financing sources;
(3) loans to businesses that are unable to access adequate capital resources because the
primary assets of these businesses are typically intellectual property or similar
nontangible assets; and
(4) loans to advanced manufacturers and other Vermont businesses for product development
and intellectual property design.
(b) The Authority shall adopt regulations, policies, and procedures for the Program as
are necessary to increase the amount of investment funds available to Vermont businesses
whose capital requirements are not being met by conventional lending sources.
(c) When considering entrepreneurial lending through the Program, the Authority shall
give additional consideration and weight to an application of a business whose business
model and practices will have a demonstrable effect in achieving other public policy
goals of the State, including:
(1) The business will create jobs in strategic sectors such as the knowledge-based economy,
renewable energy, advanced manufacturing, wood products manufacturing, and value-added
agricultural processing.
(2) The business is located in a designated downtown, village center, growth center, industrial
park, or other significant geographic location recognized by the State.
(3) The business adopts energy and thermal efficiency practices in its operations or otherwise
operates in a way that reflects a commitment to green energy principles.
(4) The business will create jobs that pay a livable wage and significant benefits to
Vermont employees.
(5) The business will create environmental benefits or will manufacture environmentally
responsible products.
(d) The Authority shall include provisions in the terms of a loan made under the Program
to ensure that a loan recipient shall maintain operations within the State for a minimum
of five years from the date on which the recipient receives the loan funds from the
Authority or shall otherwise be required to repay the outstanding funds in full. (Added 2009, No. 54, § 28, eff. June 1, 2009; amended 2013, No. 179 (Adj. Sess.), § F.100; 2013, No. 199 (Adj. Sess.), § 4; 2015, No. 51, § E.1, eff. June 3, 2015.)