Best Small Business Loans in Vermont 2024: Finest Selection

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Best Small Business Loans in Vermont

In 2023, the landscape for small business loans in Vermont is expected to remain competitive and diverse, offering entrepreneurs various financing options to support their ventures. With the continued growth of online and alternative lenders, small businesses will have even more opportunities to access tailored financing solutions that best suit their needs. 

Discover a world of funding solutions for your Vermont LLC, from short-term cash boosts and flexible credit lines to tailor-made financing options. Gain access to diverse lenders, loan products, and cutting-edge fintech platforms for speedy, efficient, and accessible small business loans in Vermont. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

What is a Small Business Loan

A small business loan provider is a financial institution, lender, or service that offers financing solutions specifically designed for small businesses in Vermont. These providers facilitate access to capital for small businesses, helping them meet various financial needs such as working capital, equipment purchases, expansion, and other growth-related expenses. Small business loan providers can include Vermont banks, credit unions, online lenders, and alternative financing companies. They offer a range of loan products, such as term loans, lines of credit, invoice financing, and merchant cash advances, each tailored to meet small businesses’ unique needs and requirements.

10 Best Small Business Loans in Vermont

We will discuss Vermont’s ten best small business loans, including eligibility criteria, loan amounts, annual percentage rates (APRs), and required minimum credit scores. Business loans provide financing options for business owners who want to start an LLC in Vermont. We’ll also provide the pros and cons of each business loan to help you make the best decision for your Vermont LLC.

1. OnDeck – Best for Short-term Loans

OnDeck is a leading online lender specializing in providing small businesses with short-term loans and lines of credit. With a simple application process, fast approval times, and flexible repayment options, OnDeck is an ideal choice for businesses seeking quick access to capital for short-term needs, such as working capital, inventory purchases, or unexpected expenses.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 29.9%

Minimum Credit Score: 625

Pros
  • Fast approval process
  • Flexible repayment options
  • Offers both term loans and lines of credit
Cons
  • High-interest rates for those with lower credit scores
  • Requires a personal guarantee
  • Not ideal for long-term financing
  • Unavailable in Nevada, North Dakota, or South Dakota.

2. Lendio – Best for Lender Comparison

Lendio is a small business loan marketplace that connects borrowers with a vast network of lenders, allowing business owners to compare loan options from various providers. By offering a wide range of loan products and personalized recommendations, Lendio helps businesses find the best financing solutions tailored to their unique needs and financial situation.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 560 or higher

Loan Amounts: $500 – $5,000,000

APR: starts at 3%

Minimum Credit Score: 560

Pros
  • Access to a vast network of lenders
  • One application for multiple loan options
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees

3. QuickBridge – Best for Fast Funding

QuickBridge is an alternative lender that provides fast and flexible funding solutions to small businesses. With a simple application process, quick approval, and funding often within 24 hours, QuickBridge is an excellent choice for businesses needing immediate capital to address short-term financial needs or seize growth opportunities.

Eligibility Criteria

  1. At least nine months in business
  2. Minimum monthly revenue of $8,000
  3. Personal credit score of 850 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10-factor rates

Minimum Credit Score: 850

Pros
  • Fast funding, often within 24 hours
  • Simple application process
  • Early payoff discounts
Cons
  • Requires daily or weekly repayments
  • Short loan terms (up to 15 months)
  • Not ideal for startups or businesses with low revenue

4. American Express Business Blueprint™ – Best for Lines of Credit

American Express Business Blueprint™ offers a range of financial solutions, including term loans and lines of credit, exclusively to American Express cardmembers. With flexible repayment options, competitive rates, and no origination or prepayment fees, this program provides businesses with the financial flexibility and support they need to grow and succeed.

Eligibility Criteria

  1. Must be an American Express cardmember
  2. Good credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $250,000

APR: Varies by loan term

Minimum Credit Score: 640; good credit history is required

Pros
  • Flexible repayment options
  • No origination or prepayment fees
  • Offers both term loans and lines of credit
Cons
  • Only available to American Express cardholders
  • Limited to businesses with strong financial performance
  • Requires a personal guarantee

5. BlueVine – Best for Flexible Lines of Credit

BlueVine is an online lender that offers flexible lines of credit and invoice factoring solutions to small and medium-sized businesses. With fast approvals, competitive rates, and the ability to draw funds only when needed, BlueVine’s lines of credit provide businesses with the financial flexibility they need to manage cash flow and seize growth opportunities.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 6.2%

Minimum Credit Score: 625

Pros
  • Fast approval and funding
  • No prepayment penalties
  • Only pay interest on the funds you use
Cons
  • Not available for some industries
  • Requires a lien on business assets
  • Higher APRs for those with lower credit scores
  • Unavailable to businesses in North and South Dakota, Puerto Rico, and other U.S. territories

6. National Funding – Best for Small to Mid-Sized Businesses

National Funding is a trusted alternative lender that offers a variety of loan products, including working capital loans, equipment financing, and merchant cash advances, designed to meet the unique needs of small to mid-sized businesses. With flexible terms, high approval rates, and a quick application process, National Funding is a reliable financing partner for businesses seeking tailored funding solutions.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 600 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10%-buy rates

Minimum Credit Score: 600

Pros
  • Flexible loan terms and repayment options
  • High approval rates
  • Quick application process
Cons
  • Not transparent about APRs
  • Requires a personal guarantee
  • Not ideal for startups or businesses with low revenue

7. Fundbox – Best for Small to Mid-Sized Businesses

Fundbox is an innovative financial technology company that provides lines of credit and invoice financing solutions to small and medium-sized businesses. With a fast and straightforward application process, transparent pricing, and flexible repayment options, Fundbox helps businesses manage cash flow challenges and unlock growth opportunities.

Eligibility Criteria

  1. At least two months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 600 or higher

Loan Amounts: $1,000 – $150,000

APR: Start at 4.66%

Minimum Credit Score: 600

Pros
  • Fast funding, often within 24 hours
  • No prepayment penalties
  • Transparent pricing and fees
Cons
  • Short loan terms (up to 12 months)
  • Requires weekly repayments
  • Not suitable for startups or businesses with low revenue

8. TD Bank – Best for Healthcare Professionals

TD Bank offers specialized financing solutions designed exclusively for licensed healthcare professionals, including dentists, veterinarians, and physicians. With flexible repayment terms, relationship-based pricing, and a deep understanding of the healthcare industry, TD Bank is a trusted financing partner for healthcare practices seeking to grow, expand, or modernize their operations.

Eligibility Criteria

  1. Licensed healthcare professionals
  2. Good personal credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $5,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 660; good credit history is required

Pros
  • Specialized financing options for healthcare professionals
  • Flexible repayment terms
  • Relationship-based pricing for existing customers
Cons
  • Limited to healthcare professionals
  • Requires a personal guarantee
  • Not transparent about APRs and fees
  • Only located in 16 states

9. Funding Circle – Best for Established Business

Funding Circle is a leading online lender that offers affordable and transparent term loans to established small businesses. With competitive interest rates, longer loan terms, and no prepayment penalties, Funding Circle provides businesses the capital they need to invest in long-term growth opportunities and strengthen their financial position.

Eligibility Criteria

  1. At least two years in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 660 or higher

Loan Amounts: $25,000 – $500,000

APR: 7.49% to 24.99%

Minimum Credit Score: 660

Pros
  • Competitive interest rates
  • Longer loan terms (up to 5 years)
  • No prepayment penalties
Cons
  • Requires a lien on business assets
  • Not ideal for businesses with low revenue or credit scores
  • Longer application process compared to other lenders

10. Biz2Credit – Best for Loan Options

Biz2Credit is a small business financing platform that connects borrowers with a wide range of loan options from an extensive network of lenders. With a personalized approach to loan recommendations and various loan products, Biz2Credit helps businesses find the right financing solution to meet their unique needs and financial goals.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 575 or higher

Loan Amounts: $25,000 – $6,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 575

Pros
  • Wide range of loan options
  • Access to a network of lenders
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees

FAQs

What are the best small business banks in Vermont?
Some of the best small business banks in Vermont include Community National Bank, North Country Federal Credit Union, and Union Bank.
What is the biggest bank in Vermont?
The biggest bank in Vermont is the People’s United Bank.
Are there any banks that specialize in small business loans in Vermont?
Yes, Community National Bank is known for specializing in small business loans in Vermont.
What types of services do small business banks in Vermont offer?
Small business banks in Vermont offer a variety of services, including checking and savings accounts, credit cards, loans, merchant services, and online banking.
What are some of the top-rated credit unions in Vermont for small businesses?
North Country Federal Credit Union, VSECU, and New England Federal Credit Union are some of the top-rated credit unions in Vermont for small businesses.
Are there any national banks that have branches in Vermont for small businesses?
Yes, Wells Fargo has several branches in Vermont that small businesses can bank with.
What are some of the benefits of banking with a Vermont-based bank for small businesses?
By banking with a local Vermont bank, small businesses can benefit from personalized service, local decision-making, and a bank that is invested in the local community.
Are there any banks in Vermont that offer free checking accounts for small businesses?
Yes, some banks in Vermont, such as Community National Bank, offer free checking accounts for qualifying small businesses.
What are some of the factors small businesses should consider when choosing a bank in Vermont?
Some of the factors small businesses should consider when choosing a bank in Vermont include fees, interest rates, reputation, customer service, and online banking capabilities.
Are there any online-only banks that cater to small businesses in Vermont?
Azlo and Novo are two online-only banks that cater to small businesses in Vermont.
Is it important for small businesses in Vermont to bank with a local bank?
It can be important for small businesses in Vermont to bank with a local bank because of the personalized service, local decision-making, and investment in the community.
Do small business banks in Vermont offer treasury management services?
Yes, both national and Vermont-based banks offer treasury management services for small businesses.
What are some of the advantages of banking with a credit union in Vermont for small businesses?
One advantage of banking with a credit union in Vermont for small businesses is that credit unions are typically member-owned and operate as not-for-profit organizations, which can result in lower fees and better customer service.
Are there any Vermont-based banks that offer mobile banking apps for small businesses?
Yes, some Vermont-based banks offer mobile banking apps, including Union Bank and Passumpsic Bank.
Can small businesses open a business bank account remotely with Vermont-based banks?
Some Vermont-based banks may allow small businesses to open a business bank account remotely, but it depends on the bank’s policies.
What makes North Country Federal Credit Union one of the top credit unions for small businesses in Vermont?
North Country Federal Credit Union is known for its focus on member service, wide range of financial products and services, and community involvement, making it a top credit union for small businesses in Vermont.
Are there any Vermont banks that specialize in agriculture-based small businesses?
Union Bank has a specialty agribusiness division that caters specifically to small businesses in the agriculture industry in Vermont.
Do any banks in Vermont offer business line of credit options for small businesses?
Yes, some banks in Vermont offer business lines of credit, including KeyBank and Community National Bank.
What is Passumpsic Bank known for specifically when it comes to small business banking in Vermont?
Passumpsic Bank is known for its focus on community banking, local decision-making, and customer service, making it a popular option for small business banking in Vermont.
Can small businesses in Vermont easily switch banks if they are unsatisfied with their current bank?
Yes, small businesses in Vermont can switch banks at any time if they are not satisfied with their current bank. It’s important to check on any fees or penalties associated with the transfer of accounts, however.
What types of loans do banks in Vermont offer for small businesses?
Banks in Vermont offer a variety of loans for small businesses, including traditional term loans, lines of credit, Small Business Administration (SBA) loans, and equipment financing.
Are banks in Vermont open on weekends for small businesses?
The majority of banks in Vermont are not open on weekends, but some may have select branches or services available on Saturdays.
Are credit unions in Vermont backed by the FDIC?
No, credit unions in Vermont are not backed by the FDIC (Federal Deposit Insurance Corporation), but they operate with similar protections through the National Credit Union Administration (NCUA) insurance fund.
What is considered a small business loan in Vermont?
The definition of a small business loan in Vermont can vary by lender, but generally, a loan amount below $250,000 is considered a small business loan.
What are some government-backed assistance programs for small businesses in Vermont?
Some government-backed assistance programs for small businesses in Vermont include the Vermont Entrepreneurial Resource Network and Small Business Development Center (SBDC) Vermont.
How can Vermont-based banks or credit unions help small businesses impacted by COVID-19?
Many Vermont-based banks and credit unions are offering COVID-19 disaster relief loan programs, payment deferrals, and other assistance measures to help small businesses impacted by the pandemic.
Can small businesses get loans without collateral from banks in Vermont?
Yes, depending on the perceived creditworthiness of the borrower, some banks in Vermont may offer loans without collateral for small businesses. However, not all banks or situations will allow for this type of loan.
Do any Vermont banks offer free business consultations or partnerships to help small businesses grow and succeed?
Yes, organizations such as Vermont Small Business Development Center offer free services to help entrepreneurs start, grow, and finance their small businesses, including assistance with business plans, financial projections, and other resources. Additionally, it’s important to research the banks or credit unions in your area for partnerships or programs offered.
Which banks offer the best small business services in Vermont?
Some of the best banks for small businesses in Vermont include KeyBank, Union Bank, People’s United Bank, and TD Bank.
What types of financial services do small businesses need?
Small businesses may need a range of financial services including loans, credit lines, checking and savings accounts, merchant services, and asset management.
Can I get a small business loan in Vermont from a national bank?
Yes, many national banks like TD Bank and Bank of America offer small business loans in Vermont.
What is the average small business loan interest rate in Vermont?
Small business loan interest rates in Vermont may vary depending on the bank and size of your business.
What is the process for applying for a Vermont small business loan?
The loan application process varies by bank, but generally requires applicants to submit a business plan, financial statements, and other relevant documents.
What is the smallest loan amount I can take out for my small business in Vermont?
Some banks have a minimum loan amount for small business loans, but this varies by bank so it’s best to check with your preferred lender.
Can I get a business credit card in Vermont?
Yes, many banks offer business credit cards in Vermont.
What is the best bank for small business merchant services in Vermont?
KeyBank and TD Bank are two options for small businesses looking for merchant services in Vermont.
Can I get a business checking account in Vermont?
Yes, many banks in Vermont offer business checking accounts.
Are there any Vermont-based banks specialized in small business loans?
Community Capital of Vermont is a nonprofit certified community development corporation in Vermont focused on providing access to capital and advice for small businesses.
What is the best bank for combining business and personal accounts in Vermont?
KeyBank and People’s United Bank are some of the best options for combining personal and business accounts in Vermont.
Can I open a small business account online in Vermont?
Yes, many banks in Vermont allow for online account opening for small business accounts.
What are the advantages of a small business account in Vermont?
Small business accounts can provide dedicated services and may offer a range of features such as cash management tools and lower fees.
What is required to qualify for a loan in Vermont?
To qualify for a loan in Vermont, you will typically need to provide collateral, credit history, and financial statements.
How long does it take to be approved for a business loan in Vermont?
The approval process varies by bank and loan amount, but it can take several days to several weeks to be approved for a business loan in Vermont.
What is the best bank for a microloan in Vermont?
Community Capital of Vermont is a good option for small businesses looking for microloans in Vermont.
Can I set up automatic payments for my small business loan in Vermont?
Yes, many banks in Vermont allow for automatic payments for small business loans.
What are the advantages of credit unions for small businesses in Vermont?
Credit unions may offer lower fees and better customer service to small businesses in Vermont.
What is the process for closing a small business bank account in Vermont?
The process for closing a small business bank account in Vermont varies by bank and may require a written request.
Can I get a loan for a startup in Vermont?
Yes, many banks offer loans for startups in Vermont, but they may require additional documents such as a business plan and financial projections.
What are the key features of a small business loan lender in Vermont?
Key features for small business loan lenders in Vermont may include competitive interest rates, flexible repayment terms, and fast approval processes.
Are there any grants available for small businesses in Vermont?
Yes, there are a variety of grants, loans, and other financial assistance programs available for small businesses in Vermont, many of which are provided by state agencies.
How can I improve my chances of getting approved for a small business loan in Vermont?
Improving your credit score, providing collateral, having a sound business plan, and maintaining strong cash flow can all increase your chances of getting approved for a small business loan in Vermont.
What is the best bank for a small business line of credit in Vermont?
TD Bank and Union Bank are two options for small businesses looking for a line of credit in Vermont.
What are the fees associated with small business banking in Vermont?
Fees associated with small business banking in Vermont vary by bank, but may include account maintenance fees, overdraft fees, and transaction fees.
Can I open a business savings account in Vermont?
Yes, many banks in Vermont offer business savings accounts.
What is the best bank for a small business loan in Vermont with bad credit?
Community Capital of Vermont is a good option for small businesses in Vermont with bad credit looking for loans.
Is it necessary to have a good personal credit score to get a small business loan in Vermont?
Yes, most banks consider personal credit history in their decision to approve or deny small business loans in Vermont.
Can I refinance my small business loan in Vermont?
Yes, some banks offer small business loan refinancing in Vermont.

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Conclusion

As Vermont, also known as The Green Mountain State continues to foster a vibrant entrepreneurial ecosystem, having access to the right financial partners and resources will be crucial in navigating this thrilling ride. By exploring various small business loan options and staying attuned to the ever-evolving financing landscape, entrepreneurs can achieve their dreams and contribute to the ongoing prosperity of the Vermont economy.

When looking for the best small business loans in Vermont, it’s essential to consider your unique needs and financial situation. Whether you’re forming a Vermont LLC or growing your existing LLC in Vermont, each of these lenders offers something different to help you achieve your goals. Be sure to compare loan options, eligibility criteria, APRs, and repayment terms to find the right fit for your business. Visit LLCBase for more information about starting an LLC in Vermont.

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