Small business owners in Vermont often face challenges when trying to launch, grow, or recover their businesses. One of the biggest obstacles is securing funding. While traditional loans can be helpful, many entrepreneurs prefer Vermont small business grants because they do not have to be repaid. Fortunately, Vermont offers a variety of grant opportunities from local, state, and federal sources.
This guide will help you understand the types of small business grants available in Vermont, where to find them, how to apply, and what to expect during the process.
Understanding How Small Business Grants Work
A small business grant is a type of funding provided by government agencies, nonprofits, or private organizations to support specific business needs. Unlike loans, grants do not require repayment. However, they often come with rules, deadlines, and reporting requirements.
Most Vermont grants are designed to support specific industries, encourage job creation, stimulate economic development, or assist businesses recovering from hardship. Applying for a grant usually involves submitting a detailed proposal explaining how the funds will be used.
State-Funded Grant Programs in Vermont
When it comes to small business grants, Vermont offers several grant programs to help entrepreneurs grow their ventures, particularly those with a focus on community impact or local industries.
Vermont Community Development Program (VCDP)
The VCDP provides funding to towns that support local businesses. Projects must benefit the community, often through job creation or essential services.
Working Lands Enterprise Initiative
These Vermont grants for small business support agriculture, forestry, and food-based businesses. Funds can help with equipment, expansion, or marketing.
Vermont Economic Development Authority (VEDA)
VEDA mostly provides loans but occasionally partners on special grant opportunities, especially during emergencies or for targeted industries.
Federal Grants Accessible to Vermont Businesses
Vermont businesses can also access federal grants, which are more competitive but often offer larger funding amounts.
Small Business Innovation Research (SBIR) and Technology Transfer (STTR)
These SBA-managed programs fund high-tech, research-driven businesses. Agencies like NASA or the Department of Energy provide support for development and testing.
USDA Rural Business Development Grants
Offered by the USDA, these grants help rural businesses improve services, expand operations, and support job creation in local communities.
Other Federal Sources
Additional opportunities are available through the Economic Development Administration (EDA), NIH, and the Department of Education. Use Grants.gov to search all federal listings.
Local and Regional Funding Opportunities in Vermont
Many towns and regions offer local grants for small businesses in Vermont to support the economic stability of the community. Here are a few resources:
Regional Development Corporations (RDCs)
Vermont’s 12 RDCs offer technical help and connect businesses to grants. Each region has its own programs, so check with your local office.
Municipal Grants and Microenterprise Assistance
Some towns provide grants to attract small businesses or support tourism. Programs like the Micro Business Development Program (MBDP) offer funding and training to low-income entrepreneurs.
Downtown and Village Center Tax Credits
This program offers tax credits to businesses that restore historic buildings in designated downtowns and village centers, thereby reducing renovation costs.
Grants for Specific Populations in Vermont
Some funding opportunities target specific business owners. For instance, Vermont grants for women's small business owners are available, as well as grants for veterans and minority entrepreneurs. These programs aim to level the playing field by offering extra support where barriers to entry exist.
Women-Owned Businesses
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Center for Women & Enterprise Vermont: Offers small business grants for women, training, and support to help women entrepreneurs succeed.
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Amber Grant: A national grant available to women across all states, including Vermont.
Veteran-Owned Businesses
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Office of Veterans Business Development (OVBD): Connects veterans to SBA programs, including grants and mentoring.
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Vermont Veterans Fund: While not business-specific, it may support community or veteran-run projects.
BIPOC-Owned Businesses
Some nonprofits, such as the Vermont Partnership for Fairness and Diversity, work to increase access to capital for businesses owned by Black, Indigenous, and People of Color (BIPOC). While these may not be grants in the traditional sense, they can connect owners with special funding streams.
Tips for Applying for Vermont Small Business Grants
Applying for any State of Vermont small business grants takes time, organization, and planning. Here are some strategies that can help you stand out:
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Know the eligibility requirements. Make sure your business qualifies before applying.
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Be specific in your proposal. Explain exactly how you’ll use the money and what impact it will have.
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Gather documents early. These may include tax returns, business plans, and financial statements.
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Follow all deadlines. Late or incomplete applications are often rejected automatically.
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Ask for help. Organizations like the Vermont Small Business Development Center (VtSBDC) offer free guidance and grant writing assistance.
Where To Look for Current Vermont Small Business Grants
To stay informed about available grants, check these trusted resources regularly:
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Grants.gov: Federal grants across all sectors
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ACCD Vermont: State-specific programs and announcements
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VtSBDC.org: Free support and small business resources
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VEDA.org: Vermont Economic Development Authority
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Local chambers of commerce and development corporations
Other Options if Grants Are Not Available
If you’re not able to secure any Vermont small business grants, consider exploring alternative funding options:
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Low-interest loans from credit unions or VEDA
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Community development financial institutions (CDFIs)
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Crowdfunding campaigns on Kickstarter or Indiegogo
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Peer-to-peer lending through platforms like Kiva
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Business pitch competitions hosted by colleges or local organizations
Many successful Vermont entrepreneurs use a mix of grants, loans, and private funding to grow their businesses.
Final Thoughts: Vermont Supports Its Small Business Community
Finding the right small business grant in Vermont can take time, but the effort is worthwhile. Maybe you’re seeking small business startup grants in Vermont to help you launch a new idea. Or perhaps you’re growing an existing company, or recovering from tough times. In any case, grants can provide a financial lift without long-term debt. With many state, federal, and regional resources available, Vermont continues to show strong support for its small business owners.
