Use of Proceeds
Use of Proceeds
- SBA 504 Loan Application Forms
"The Money That Makes America
Call CVEDC at 1-888-769-2957
CVEDC works jointly with the Vermont Economic Development Authority
(VEDA) 504 Corporation to assist you with financing. Let us help
you get started!
- Most for-profit businesses, excluding those
engaged primarily in investment for speculation, education or gambling,
are eligible to apply for a 504 loan.
ELIGIBLE USE OF PROCEEDS
504 loan proceeds must be used for fixed
asset projects such as:
INELIGIBLE USE OF PROCEEDS
504 loan proceeds cannot be used
for the following:
- Working capital;
- Colsolidation or repayment of debt;
TYPICAL LOAN TERMS
- The borrower contributes a minimum of 10% of
the project cost or appraised value, whichever is less.
- VEDA contributes a maximum of 40% of the
project costs or appraised value, whichever is less, with a 10
to 20 year term. The maximum
loan amount is $1.5 million.
- A bank finances a maximum of 50% of the project
costs or appraised value,
whichever is less, with a negotiable interest rate for a 7
to 20 year term.
- The assets of the project being financed
are typically used as collateral. In addition, personal guarantees
of the principal owners are required.
- Approval is issued As Soon As Possible upon receipt of the financial package from the borrower
or participating bank.
The SBA issues final approval within 30 days upon receipt of the borrowers application from
SBA 504 Loan Application Forms
- The first step in the SBA 504 loan process
is contacting CVEDC to discuss your project. Please call us
toll free at 1-888-769-2957 or 802-223-4654.
Once your project has been discussed, all parts of the application
must be filled out and returned to: Sam Matthews, Executive
Vice President, CVEDC, PO Box 1439, Montpelier, VT 05601-1439
or firstname.lastname@example.org. (Please
note that all forms below are in PDF format. Acrobat Reader
is necessary to view and type the forms.)
The following SBA 504 application forms are in Microsoft
(If needed, please contact us for a different format.)
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