The Small Business Administration Vermont District Office supported approximately $1 billion in loans and COVID-19 relief funds from October 1, 2020 to September 30, 2021, the agency’s fiscal year. The SBA assisted small business obtain loans through its traditional 7(a), 504 and microloan programs, but the vast majority was through the Paycheck Protection Program and Economic Injury Disaster Loans. In Vermont, small businesses received 9,541 PPP loans worth $564,206,007.
“This was and still is a trying year for the country and Vermont, and I am thankful to the SBA staff and our many partners assisting Vermont small business with their PPP loans and EIDLs each day. Lending of this magnitude throughout Vermont was only possible due to the many banks, credit unions, and alternative lenders throughout the state. VT lenders processed PPP loans as quickly as they came in and provided Vermont small businesses much needed relief, often approving loans the same day,” said Darcy Carter, SBA Vermont District Director.
Paycheck Protection Program was one of the primary provisions created to assist small business owners in the $2.2 trillion economic relief bill, Coronavirus Aid, Relief, and Economic Security Act passed and signed in March 2020. Additional PPP and EIDL funding was provided when the Consolidated Appropriations Act was passed and signed in December and the American Rescue Plan Act was passed and signed in March.
PPP offered small business owners a forgivable loan as long as they kept their workforce employed during the pandemic and EIDL is a direct low-interest, fixed-rate, and long-term loan from the SBA to assist small businesses overcome the effects of the pandemic.
The American Rescue Plan Act also established the Restaurant Revitalization Fund and the Shuttered Venue Operators Grant. RRF provided grants to restaurants affected and SVOG provided grants to live venues affected by COVID-19.
Traditional 7(a) and 504 lending throughout Vermont marked it best year in Vermont in more than 10 years supporting $73,124,500 worth of loans. The 7(a) Loan Program, SBA’s most common loan program, is for working capital, refinancing, inventory and more. Throughout the state, small businesses received 150 7(a) loans worth $46,381,500. The 504 Loan Program provides long-term, fixed-rate financing for purchasing and renovating land, buildings and equipment. Forty-five small businesses received 504 loans worth $26,743,000. During the pandemic interest rates dropped and the SBA waived most fees associated with the loans.
“In the midst of a once-in-a-generation pandemic, the SBA’s mission-driven team delivered a record number of SBA’s traditional loans to our nation’s small businesses – in addition to more than $1.1 trillion in COVID-related relief since the start of the pandemic,” said SBA Administrator Isabella Guzman. “While progress has been made, our data also tells a deeper story: historic inequities in accessing capital persist, and we must do more to lower the barriers of entry to opportunity for all our entrepreneurs. We will continue to build on our impactful programs to meet small businesses where they are and connect them with the resources needed to thrive.”
Vermont’s SBA FY21 loan highlights include:
*The SBA Vermont District Office is including all COVID-19 Economic Injury Disaster Loans associated with Vermont dating back to 2020 due to all the Vermont small businesses that increased their EIDLs in FY21.
For more information about SBA’s loan programs, financial assistance, and other services, visit www.sba.gov.
About the U.S. Small Business Administration:
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov(link is external).
Source: Vermont Business Magazine – Vermont small businesses received $1 billion from SBA in FY21