The VEDA Forgivable Loan Program (VLP) is designed to provide financial assistance to businesses that are continuing to experience current and on-going economic harm due to the COVID-19 pandemic.

VtSBDC is here to assist you as you consider if this program is right for your business if you have met the General and Sector requirements below:

General requirements:

  • Is a for profit or not for profit business
  • Has fewer than 500 employees
  • Is located in Vermont
  • Was in operation or had taken substantial steps toward becoming operational as of March 13, 2020.
  • Can demonstrate and attest to economic harm caused by or exacerbated by the pandemic and that such economic harm is ongoing.
  1. Economic harm defined as the cumulative reduction in Adjusted Net Operating Income in calendar years 2020 and 2021 compared with 2019, of at least 22.5%.
  2. The FLP Calculator Tool (download) will help determine your eligibility, simply by inputting your previous COVID relief grants received and information from your business tax returns from 2019, 2020, and 2021.

Priority sectors: Only businesses in the following sectors will have access to the program in the first 30 days. At the end of the 30-day period, VEDA, in consultation with ACCD, will reassess the need to continue limiting the program to the priority sectors or open it up to all sectors based on demand and available funding:

  • Travel and Tourism
  • Restaurants and Eating establishments
  • Lodging
  • Child day care service providers
  • Agriculture
  • BIPOC owned businesses from all sectors.

NOTE: Any non-priority sector applicants who submit during the priority window will be rejected. Those applicants will need to resubmit.

To request assistance with completing the calculator and then the application process (if you qualify) please click here to access the REQUEST FORM, and once you fill it out and submit, you will be contacted by VtSBDC.  

Please note VtSBDC is not involved in the loan approval process.


The Forgivable Loan (VLP) is a two-step process.

STEP ONE – Does my business meet the ELIGIBILITY requirement of at least a 22.5% reduction in net income for the designated period?

  • Use the calculator (FLP Calculator Tool (download)) to determine if you can demonstrate “economic harm” caused by or exacerbated by the pandemic. Economic harm is met by demonstrating at least a 22.5% reduction in adjusted net operating income in calendar years 2020 and 2021 compared to 2019, or other appropriate basis of comparison where necessary.”  (Sect. 47(c)(4))

In order to complete the calculator you will need the following information:

  • Business Tax Returns for 2019, 2020 and 2021
  • A Profit and Loss for January – June 2022
  • A complete list of all COVID Grants received to date including but not limited to the following (if you have previously used the VtSBDC COVID Dashboard to record your loans and grants use that to fill in the calculator):
  • SBA Paycheck Protection Program (all rounds)
  • SBA EIDL Grant (this is the Advance portion that was capped at $10,000 and not the EIDL Loan)
  • SBA Shuttered Venue Operators Grant
  • SBA Restaurant Revitalization Fund
  • USDA Coronavirus Food Assistance Program (CFAP)
  • USDA Coronavirus Food Assistance Program (CFAP2)
  • VT ACCD Economic Recovery Grants
  • VT ACCD Economic Recovery Bridge Program
  • VT COVID-19 Agriculture Assistance Program (VCAAP)
  • Vt ANR Forest Economy Stabilization Grants
  • DCF Child Care Stabilization Grant
  • Others – note if you received other grant funding you will need to list the source, the dollar amount and fill in the Taxable or Non-Taxable status.

NOTE: the first step in entering your tax return information is to choose the correct tax form you filed from the choices in the drop-down box. Once you have chosen specific instructions will appear on the right-hand side that will indicate the exact line on the tax return where you will find the number/value the calculator is requesting. Or if an N/A is next to the box the value is not needed.

Once you have successfully completed the calculator it will automatically calculate your eligibility. This is done by calculating the Adjusted Net Operating Income (ANOI) for 2019, 2020 and 2021. Then using those three years of ANOI to figure the percentage change in income {(ANOI 2019 – ANOI 2020) + (ANOI 2019 – ANOI 2021)/ANOI 2019}. This percentage decline must equal at least 22.5% in order for you to be eligible to apply. Note the ANOI is adding back in the amount of the COVID grant monies you received. 

NOTE: VEDA is suggesting if you get a RED BOX indicating non-eligibility you DO NOT need to take the time to complete the rest of the application.

The last number the calculator will calculate is the tentative cap amount of the loan you could receive – the Estimated Loan Amount. This is figured by applying a formula that considers the 2022 January – June ANOI. This calculation takes into consideration if a business is doing better or worse than 2019.

  • NOTE: VEDA is saying that the second reason (not meeting the 22.5% loss benchmark being the first) to not take the time to do the full application is if you put in your Jan-June 2022 numbers in the Calculator and the Estimated LOAN AMOUNT = 0.
  • Also, regardless of an Estimated Loan Amount over zero VEDA is going to review all applications and will calculate a loan amount based on all factors (not just the calculator) and so there may be situations in which the calculator indicates an amount and the actual loan may be lower or higher or zero. In those scenarios an explanation will be provided.
  • If a business has seasonal influences, VEDA may request financial data from the 1st 6 months of 2019 for a comparable period.
  • Regardless the loan amount will not exceed the lesser of following:
  • $350,000
  • Six months of eligible operating expenses; or
  • the cumulative reduction in Adjusted Net Operating Income in years 2020, 2021, and the 1st 6 months of 2022 when compared with 2019 and weighted towards the most recent financial results.

STEP TWO – Do I want to complete the application process?

Once you have gotten the “eligible indictor” and an Estimated Loan amount above zero from the calculator you can determine if you want to proceed with the application.

You can access the Application Packet here: https://www.veda.org/financing-options/other-financing-option/forgivable-0

Note: Proceeds from the VEDA Forgivable Loan can be used for all eligible operating expenses within 12 months of the receipt of the funds but NOT for capital expenditures. Further instructions will come with the loan signing documents.

  • Eligible operating expenses include but are not limited to payroll, mortgage interest, rent, utilities and other operating costs.

Carefully consider the following:

  1. All paperwork required:
  • VEDA Short Term Forgivable Loan Application
  • 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
  • Completed 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
  • Other financial documents and information may be required to make accurate assessments for certain businesses.  For example, businesses which were legally organized prior to March 13, 2020, but had not yet become fully operational, seasonal business, and businesses which have reduced operations due to COVID impacts.  
  1. The approval process will be as follows:
  • VEDA will review applications on a first come first served basis
  • Loans in this program will be approved by the same approval policy in place for all VEDA loan programs
  • At a minimum two signatures are needed to approve every loan  
  • Loans over $125,000 are approved by a loan committee
  • Response times to loans will be determined by volume of applications
  1. There will be a forgiveness process which is still to be defined but it will at a minimum require documentation for all funds spent in the allowable period.

And the requirements for forgiveness are as follows:

  • Borrowers have up to 12 months to use loan proceeds for eligible operating expenses
  • Borrowers may submit application for forgiveness any time before the end of the 12-month period following loan disbursement
  • Approval for forgiveness will be based on adequate documentation evidencing the loan proceeds were used for eligible operating expenses.  Examples of forgiveness documentation include, but are not limited to paid invoices, receipts, payroll statements and other documents as needed.  
  • Upon approval of forgiveness, loan will be considered “Paid in Full”  
  1. Until the point of forgiveness this money is considered a loan and VEDA Loan Documents will have to be signed. An unforgiven loan will have the following terms and requirements:
  • Collateral: None: unsecured.  
  • Interest: 0%.
  • Fees: None.
  • Term: up to 24 months with first 12 months no payments.  If your loan is not fully forgiven by the end of the initial 12 months the unforgiven amount converts to fully amortizing loan at 0% interest with monthly payments due over the following 12 months.  
  • Personal Guaranty Requirement:  Yes, Owners of 20% or more of the borrower will personally guarantee the loan (not applicable to non-profits).