VEDA Short-Term Forgivable Loan Program
We have some important information to share with you about the new Vermont Economic Development Authority (VEDA) short-term forgivable loan program. VEDA announced that it will release guidance and begin accepting applicants from priority sectors (arts and culture, hospitality, travel, and tourism, agriculture, and child day care providers as well as BIPOC applicants from all sectors) as early as mid-August, so we expect to have more information for you very soon. Check this site to determine when the program becomes available. https://www.veda.org/financing-options/other-financing-option/forgivable-0.
In the meantime, if you think that you might qualify for this program you should begin assembling your documentation ASAP as currently it is set up on a first come first serve basis. We’ve included some general information below including the documentation that will be required. For details about the program please click here.
Applicants must demonstrate economic harm from lost revenue, increased costs, challenges covering payroll, rent or mortgage interest, or other operating costs that threaten the current capacity of the business to weather financial hardships and result in ongoing financial insecurity due to COVID. Maximum loans will be the lesser of (1) $350,000.00; (2) six months of eligible operating expenses; or (3) the amount of the cumulative decline in adjusted net operating income during the COVID-19 public health emergency in 2020 and 2021. Loans can be used to pay for eligible operating expenses, but not for capital expenditures. Forgiveness will be determined upon documentation submitted showing that the loan was used to pay for eligible operating expenses.
Vermont for-profit and not-for-profit businesses with less than 500 employees are eligible to apply. The legislature appropriated $19 million from the state’s ARPA funds. If any funds remaining after awarding forgivable loans to the priority sectors, the funds will be made available to other eligible businesses.
Documents Required with Application:
· VEDA Short Term Forgivable Loan Application (link coming soon)
· Business Tax Returns for 2019, 2020, 2021
· Management prepared profit and loss statement for Jan.1 – June 30, 2022.
· List of previous State and federal COVID relief grants received
· VEDA Short Term Forgivable Loan Calculation Worksheet
· Completion of attestations to confirm eligibility.
· Applicant permission to share non PII information with other state and federal agencies in order to verify other COVID-19 grants received.
· Legal organizational documents
We will continue to keep you informed as we receive more information about this program.
Serving Northern New England with offices in the Burlington Metro area, Davis & Hodgdon CPAs has been assisting Vermont’s residents and entrepreneurs for more than 30 years. Our proactive approach makes us more than an accounting firm – we counsel our clients on a wide range of financial and management issues, resulting in better decision making and more confidence in their success. Click here to contact us today and find out how we can help you!