Eligibility Criteria:

• Eligibility shall be limited to any private corporation, partnership, cooperative, or proprietorship located in or relocating to the City of Montpelier.
• Eligible businesses must also be located in or relocating to the Designated Downtown District.
• Enterprises must have an acceptable business plan and have demonstrated access to and use of appropriate technical assistance.
• Sufficient financing must be unavailable through conventional lending sources.

A business must also:

• operate with all necessary municipal, state, and federal permits;
• have a history of compliance with applicable regulations and permits;
• demonstrate site control;
• be current on local, state, and federal tax payments and applicable municipal service charges;
• not place unusually high demands on municipal services;
• its principals have not been convicted of a felony within the past three years; and
• the loan must result in the creation or retention of jobs primarily available to low and moderate income persons. The loan amount shall not exceed $5,000 for each full time equivalent job created or retained.
• The new or expanded business must not displace housing.

Eligible Uses:
This Loan Fund has been established to fill gaps in other business financing sources. Loan funds may be used to start, expand, strengthen, or relocate business. Eligible uses include but are not necessarily limited to:

• Purchase of inventory, equipment, materials, supplies, etc.
• Operating capital.
• Remodeling or renovations.
• Marketing expenses.
• Accessibility improvements.

Loan funds may not be used for refinancing existing debt. An approved borrower must use the loan proceeds only for the uses specified in the loan approval.

Low and Moderate Income Limits

These income limits are provided by the United States Department of Housing and Urban Development and are updated periodically.