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Small Business Loans in Vermont: Best Bank & SBA Lender for Startups, Women & Minorities
Whether you’re an excited entrepreneur just starting out or have been in business for a number of years, small business loans in Vermont can help get you on the right track to success. These types of loans can be used to purchase inventory, hire employees, for advertising and more. Vermont is a small business-friendly state that features numerous financing options.
For as small as Vermont is, a large portion of the small business population took advantage of the $2.7 million that was approved for loans by the SBA.
Where to get Small Business Loans in Vermont
The best way to obtain financing as a small business is to use apply for a loan from the Small Business Administration. While the administration isn’t the organization who actually underwrites the loan, they offer additional guarantees for the actual bank who decides to loan the money.
The following banks in Vermont specialize in small business loans for new and experienced business owners:
How to Apply for a Small Business Loan in Vermont
- Merchants Bank
- Union Bank
- The Bank of Bennington
- Connecticut River Bank
Similar to other types of loans, the Small Business Administration requires that all business owners include the following with their applications:
- Business Plan – A solid business plan with financial projections, advertising models and more will help your chances for approval.
- Credit Report – Make sure to include a credit report for your business.
- Collateral – List any collateral that is part of your business. This could include company vehicles, office equipment, property, etc.
- Bank Statements – The bank will want to know how much money you have in your accounts and may look over your spending history.
- Legal Documents – You’ll need to provide copies of your articles of incorporation, leases, business licenses and other relevant information.
Once you’ve gathered your documents, head to one of the banks near you that specializes in small business loans and fill out an application. The process could take anywhere from a few weeks to a matter of months, depending on the bank and the documents you submit.
Banks in Vermont That Offer Small Business Loans
To augment your business funds, here are the best banks for small business loans:
Northfield Savings Bank
An independent community bank founded in 1867, Northfield Savings Bank offers banking services and products as well as investment options to individuals and businesses of any size.
Passumpsic Savings Bank
Serving the Northeast Kingdom and Northern New Hampshire of Vermont, Passumpsic Savings Bank has been in the industry for nearly 170 years and is currently based in St. Johnsbury, Vermont.
Connecticut River Bank National Association
While its name bears that of another state, the Connecticut River Bank National Association is actually based in Springfield, Vermont. In 2014, it has been acquired by Mascoma Savings Bank.
Headed by David Silverman as its President and CEO, Union Bank operates as a subsidiary of Union Bankshares Inc. It has helped 1,459 small businesses with loans amounting to nearly $105 million in just a year.
Community National Bank
Once known as the Fallbrook National Bank, Community National Bank was founded in Escondido, California in 1985 but maintains a branch in Derby, Vermont.
The Randolph National Bank
The Randolph National Bank first opened its doors to the public in Randolph, Vermont in 1875 but has since been acquired by Lake Sunapee Bank FSB in 2013.
Top Cities in Vermont and Their Lenders
Vermont is the second smallest state in the country in terms of population. But this doesn’t mean there aren’t plenty of successful small business owners in the area. You’ll be pleased to know that there are plenty of successful businesses in operation in Vermont. If you want to start a successful business in the state, you’ll need to head to one of the few major cities in the area. There aren’t too many, but there are a few that have all the resources you’ll need to start a successful business. Vermont is considered one of the best places to start a new business, but it’s important to note that winters can be brutal. You should always ensure that the industry you want to work in can be supported in the city that you choose.
Below are the top small business cities in the state of Vermont. We’ll also outline each city’s best business lenders.
Burlington is the economic hub of Vermont. The city has an extremely diverse economy, despite being much smaller than most major cities in the country. A number of famous companies have been started in the city, including the popular ice cream brand Ben & Jerry’s. If you’re looking for a Vermont city that has a track record for success, Burlington is probably your best option. Below are our favorite Burlington business lenders:
Vermont Federal Credit Union
Vermont Federal Credit Union is one of the best lenders in the Vermont region. If you’re looking to work with a lender in Burlington that has expertise in the small business community in the area, this is a good option. They also provide business banking services, but you’ll have to be a member to take advantage of their low rates.
Citizens Bank is a large, regional lender that has a presence throughout the Northeast. They have a local branch in Burlington that you can use to contact their customer support team. If you want to speak with a lending rep, it’s easy to organize a meeting. They have the lending power to provide large loans to their clients.
Rutland is a retail and manufacturing hotspot in the state of Vermont. The city is well-known for having some of the highest sales figures in the state. If you’re looking to start a retail business in an economy that has proven results, Rutland is probably your best option in the state of Vermont. Below are our favorite lenders in the city:
VSECU is another credit union with a presence throughout Vermont. They’re also a great choice for those who want to work with a lender that can provide low rates to their clients. The only downside is that you’ll have to be a member to take advantage of their low rates – though this is the case with most credit unions.
Vermont Federal Credit Union
Although mentioned previously, Vermont Federal Credit Union also has an extremely large presence in the Rutland area. If you want to work with a large lender that provides low rates, this is one of the most reliable options on the market. They have a great reputation with plenty of small business owners in the area – they have a proven track record of success.
Barre, Vermont is a major player in the US granite industry. They also have a range of other industries present in the city, but the population of the area may not be large enough for certain businesses – it’s important to check if Barre will be right for your business. Our favorite lender in the city is listed below:
Northfield Savings Bank
Our top pick for the Barre, Vermont area is the Northfield Savings Bank. They have great access to different lending products that can help you take your business to the next level. Whether you’re looking for lines of credit, term loans, real estate loans, or other types of business loans, this is a good option. They also provide business banking services and personal banking services – if you’re looking to keep all your finances in a central location, this is a great option in the Barre region.
Montpelier, Vermont is one of the most beautiful areas of the state. Tourism is a major industry in the area, as are the healthcare and insurance industries. Below is our favorite lender in the Montpelier, Vermont region:
VEDA is an economic development authority that can provide loans to the Montpelier region. They’re a great option if you’re worried you won’t be able to qualify for traditional financing. If you’re looking for a lender that truly cares about growing your business, VEDA is a solid choice to have. If you want a reputable lender that has your best interests in mind, we wouldn’t recommend anyone else!
Remember, some of these companies or banks are very specialized and may only handle a SBA express loan or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don’t worry as there still may be other alternative lenders willing to work with you.
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