In 2022, the State of Vermont received $57.9 million in federal American Rescue Plan Act (ARPA) funding for the State Small Business Credit Initiative (SSBCI) to provide greater access to venture capital and loans for Vermont startups and small businesses. DED is partnering with the Vermont Economic Development Authority (VEDA) to allocate and administer those SSBCI funds evenly between two programs:
Venture Capital Program – this program will allocate nearly $29 million. As of February 9, 2024, nearly $16 million has been allocated to Vermont venture capital managers that will focus on early-stage investments in high-growth potential Vermont startups. This program is designed to provide access to investment capital to Vermont companies located throughout the state, including those owned by socially and economically disadvantaged individuals (SEDI).
- $12.5 million of funds remain and VEDA may select more than one fund manager to manage it.
- Thad Richardson of VEDA is accepting questions via email about the Venture Capital Program Request for Proposal (RFP) form until February 16, 2024.
- The deadline to submit a proposal is March 1, 2024 at 1:00 pm EST.
Loan Participation Program – this program will allocate nearly $29 million to a loan participation program administered by VEDA which will leverage private funds to help small businesses grow, create good paying jobs, and serve underserved markets.
For more on the Venture Capital Program and Loan Participation Program, including eligibility rules, visit VEDA’s SSBCI website.