Small business grants are funds provided by government agencies, nonprofit organizations, and private entities to support businesses without repayment. These grants are highly competitive, and businesses must meet specific eligibility criteria to apply.

Below is a list of notable business grants available in Vermont:

• VEDA Commercial Loan Program Grant: This grant provides funding for businesses needing capital for expansion, equipment purchases, or working capital. It is available to businesses in various sectors, including manufacturing, tourism, and retail.
• Specialty Crop Block Grant Program: This program supports businesses producing specialty crops like fruits, vegetables, and herbs. This grant helps with marketing, research, and agricultural projects to enhance Vermont’s local food systems.
• Vermont Community Loan Fund—Food, Farms & Forests Fund: This fund helps businesses in Vermont’s food, farming, and forestry sectors access capital. The grant aims to support projects that promote sustainability, improve local food systems, and foster community development.
• Vermont Tourism and Marketing Partnership Program Grant: This grant supports Vermont-based businesses that contribute to tourism development. It focuses on projects that enhance the state’s tourism appeal, such as events, marketing campaigns, or tourism-related infrastructure.
• Vermont Women’s Fund – Women’s Economic Empowerment Grant: This grant is available to women-owned businesses in Vermont and aims to help them grow and expand. It supports projects that empower women, increase their economic participation, and support entrepreneurship.
• The Vermont Sustainable Jobs Fund – Innovation Grant Program: This grant program provides funding to businesses developing innovative solutions in the renewable energy, food systems, and green technology sectors. The grant is designed to foster sustainable economic growth and environmental stewardship in Vermont.
• Vermont Green Business Grant Program: This program supports businesses that adopt environmentally friendly practices and green technologies. The grant encourages sustainability by funding projects that reduce waste, conserve energy, and promote eco-friendly business operations.
• Vermont Small Business Development Center – Growth Fund Grant: This grant assists small businesses looking to expand their operations. It provides capital to support the growth of businesses in sectors such as manufacturing, technology, and professional services.

Small business tax credits are incentives the state provides to help reduce a business’s tax liability. These credits encourage business activities such as hiring, expanding, or investing in specific areas like clean energy and workforce development.

Below are some of the available tax credits for businesses in Vermont.

• Vermont Economic Advancement Tax Incentive (EATI) Credit: This credit provides a tax credit to businesses that invest in capital improvements or increase their payroll. It aims to promote business growth and job creation in Vermont, especially in sectors like manufacturing and technology.
• Vermont Investment Tax Credit (ITC): A tax credit for businesses that invest in new equipment or machinery. This credit is available to businesses that purchase qualifying assets to expand their operations, improve efficiency, or support manufacturing activities in the state.
• Vermont New Employment Tax Credit (NETC): This credit encourages businesses to hire new employees in Vermont by offering a tax credit based on the wages paid to qualified workers. It is designed to incentivize businesses to grow their workforce and contribute to local economic development.
• Vermont Research and Development (R&D) Tax Credit: This tax credit is for businesses engaged in research and development activities. It is aimed at businesses developing new products or technologies and supports innovation within industries like biotechnology, engineering, and manufacturing.
• Vermont Brownfields Tax Credit: This credit helps businesses invest in the cleanup of contaminated properties, commonly known as brownfields. It is available to companies that rehabilitate these sites for future commercial use, contributing to environmental improvement and urban renewal.
• Vermont Sales and Use Tax Exemption for Manufacturing Equipment: This incentive reduces operational costs for businesses in the manufacturing sector by exempting them from paying sales tax on purchases of equipment used directly in manufacturing processes.
• Vermont Historic Preservation Tax Credit: This credit encourages the restoration of historic buildings by providing a tax credit for businesses that invest in preserving or rehabilitating historic properties. It helps protect Vermont’s cultural heritage while supporting redevelopment projects.
• Vermont Green Energy Tax Credit: This tax credit is offered to businesses that invest in renewable energy systems, such as solar panels or wind turbines. This incentive helps businesses reduce energy costs and promote environmental sustainability through green energy technologies.
• Vermont Workforce Expansion Tax Credit: This credit is provided to businesses that hire new employees and offer workforce training programs. It is intended to encourage businesses to invest in workforce development and enhance their employees’ skills.
• Vermont Enterprise Zone Tax Credit: This credit offers tax incentives to businesses in designated Enterprise Zones. It encourages businesses to establish or expand operations in economically disadvantaged areas, fostering job creation and community development.

A low credit score limits financing options, but credit-challenged Vermont small business owners can obtain financing with bad credit business loans. These specialized financing options focus on a business’s cash flow and growth potential more than the personal credit score of the business owner(s), increasing your chances of credit and lender approval.

Several alternative business lenders specialize in providing business financing for credit-challenged entrepreneurs. Online lenders offer easy online applications with minimal documentation, quick decisions, and fast funding, which benefits small businesses with urgent capital needs.

However, business loans for bad credit often carry high interest rates and increased fees. In addition, you may receive a lower maximum loan amount, have shorter repayment terms, and require more frequent repayment. These conditions can lead to further financial strain if not properly managed. Ensure you have a plan and budget before agreeing to a bad credit business loan.

A popular strategy for VT business owners is to use a bad credit business loan as short-term financing until their credit improves. With a better credit score, entrepreneurs can access lower-cost, long-term loans and pay off bad credit business loan debt.