Press Release

State giving away another $19 million for employer pandemic recovery

BIPOC, sectors hurt most by pandemic have priority

Gov. Phil Scott yesterday announced the launch of the Short-Term Forgivable Loan Program designed to support Vermont businesses experiencing continued working capital shortfalls as a result of the pandemic.

“Supporting businesses in every region of the state to recover and rebuild remains a top priority of my administration, and that’s why we worked to secure this funding from the Legislature,” said Governor Phil Scott. “This will help those businesses disproportionately impacted by the pandemic remain in operation, preserve jobs, and strengthen the economy.”

S.11 (Act 183) appropriated $19 million of Vermont’s American Rescue Plan Act (ARPA) allocation to provide financial assistance to eligible businesses, including sole-proprietors and not-for-profits, that continue to experience economic harm due to the pandemic, up to $350,000 per applicant. To be eligible, applicants must demonstrate a reduction in adjusted net operating income of at least 22.5% in 2020 and 2021 as compared to 2019, including any funding from prior programs that were not enough to weather the on-going economic challenges.

Priority will be given to applicants from the hardest hit sectors including travel and tourism, food service, lodging, childcare, and agriculture. Applications from Black, Indigenous and People of Color (BIPOC) owned businesses in all industry sectors will also be prioritized. Non-priority industry sectors will be allowed to apply after the priority period ends.

The program is designed to ensure the loans will be forgiven if the proceeds are used to pay for eligible operating expenses. There are no restrictions to how the funds must be spent, only that the money be used for operating costs and not capital investments. Borrowers who use the loan to pay for operating expenses such as payroll, mortgage interest, rent, and utilities will have twelve months to apply for full forgiveness.

Businesses working in the arts, culture, and creative economy sectors may be eligible for a Creative Futures Grant and should visit the Vermont Arts Council webpage for information.

“The health of Vermont’s economy is dependent on the health of the small business community and the intent of this program is to help businesses with their cash flow needs to get back on stable footing so they can thrive beyond the pandemic,” said VEDA’s Chief Executive Officer Cassie Polhemus. “VEDA’s expertise in small business financing combined with our previous work in administering similar programs such as the SBA Paycheck Protection Program (PPP) positions us well to help these businesses access this money so they can continue providing the goods and services that are vital to us as consumers and to fuel the Vermont economy.”

Applications are processed on a first come, first served basis. Applicants are highly encouraged to seek technical assistance for help determining eligibility prior to applying. Technical assistance is available through the Vermont Small Business Development Center (VtSBDC) which may be contacted directly for assistance.

VEDA is hosting a live informational webinar on Monday, September 19 at 2pm. Please register to attend the live session or watch a recording of the webinar, which will be made available for viewing on the VEDA website.

The Short-Term Forgivable Loan Program application, instructions, tools, and technical assistance information are available on the VEDA website.

Categories: Press Release

11 replies »

  1. The reason businesses are hard up is because our federal government conjured and spent all this money (we dont have!) in the first place.7 Now the same folks degrading the dollar, feeding inflation, locking us down are coming to the rescue? This is the biggest expansion of government in our history and its all at the expense of the our current economy and that of all future generations. HUSH MONEY!!!

  2. Isn’t it illegal to discriminate against people on the basis of skin color?? Phil Scott is a racist…now confirmed.

    • Is white considered a color ? If not, BIPOC is racist against white people. The Governor now supports a racist agenda, supports the Big Lie that white people are privileged, and people of color are oppressed. It sounds funny to pull the race card. But when a group of people (people of color) are singled out to receive money (that came from tax payers) than you have also singled out based on color those who will not receive anything. I have no problem helping businesses (within reason) who were recently hit hard. But when you separate the owners of a business by color, that is racist.

  3. I urge everyone to call the governor and demand an explanation of why this isn’t a blatant case of violation of the equal rights amendment. Yes, blatant racism by the immoral marxist left. Seriously, pester the hell out of the governor.
    What if someone published a notice of funds available with preference given to white Anglo Vermonters.
    Seriously, call the governor’s hot line, several times, and wake the guy up. Furthermore, we need a courageous attorney to represent someone hurt by this nonsense to represent a white business owner.
    I personally applied for a government business grant that was point-based, and lost 3 points because I am not LBGQMxyz and another 3 points because I am not BIPOClmnop.
    OH, I did not get the grant..

    • You shouldve just said you were lgbtq and bipoc since neither term has a quantifiable minimum qualification. Im sure we’re all a some percentage indigenous or “colored” a the lgbtq thing is super easy…”im a man, now im a woman…now im a man again”….and then congratulations, your transgendered. None of this crap could ever hold up in court because it is not quantifiable. I think if it were, then technically they could be charged with some kind of a racial discrimination crime.

  4. Spend Spend Spend………this continues to be stunning….the vote buying continues on……..

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