Key takeaways for Vermont
- There is no open, general-purpose small business grant from the State of Vermont. Real grants are targeted: rural, research, disaster, workforce.
- Vermont has 81,949 small businesses, 99.0% of all businesses in the state (SBA Office of Advocacy, 2025) — competition for any open grant is heavy.
- USDA Rural Development's Vermont office publishes the rural business grant programs that apply in the state; SBIR/STTR covers federally funded R&D.
- Vermont Economic Development Authority is the state agency behind Vermont's business capital programs — about $57.9 million in federal SSBCI funds — but those are lender-backed loans, not grants.
- Free application help: the Vermont SBDC and the SBA's Vermont District office.
- If the money is needed this month, banks lent $166.6 million in loans under $100,000 to Vermont businesses in 2023, and revenue-based funders can approve within a day.
Which federal grants are available to Vermont businesses?
Two federal channels produce most real small business grants in Vermont: USDA Rural Development, for businesses in rural areas, and the SBIR/STTR programs, for companies doing research and development that a federal agency wants.
USDA Rural Development's Vermont program list covers Rural Business Development Grants, Value-Added Producer Grants, the Rural Energy for America Program and the Rural Microentrepreneur Assistance Program; eligibility depends on the location's rural designation, and the Vermont state office handles applications. SBIR/STTR awards go to small firms developing technology a federal agency needs — not to retail, service or trade businesses. Our business grants guide walks through each federal program and how the application process works.
Does Vermont offer small business grants?
Not as a standing program anyone can apply to. Vermont's state-level business capital is administered by Vermont Economic Development Authority, and it is structured as loan support — guarantees, loss reserves and co-lending — under the federal State Small Business Credit Initiative, not as grants.
State grant money, when it exists, is tied to a purpose: a disaster declaration, a workforce-training initiative, an innovation or export program, or a specific industry the legislature wants to grow. Those programs open and close on their own schedules and are announced by the agency that runs them, so the place to watch is Vermont Economic Development Authority. Cities and counties across Vermont — including Burlington, Essex, South Burlington, Colchester, Rutland and Montpelier — also run occasional storefront, façade and revitalization grants through their economic development offices.
What Vermont does fund: Vermont operates three small business financing programs: one loan participation program (LPP) and two equity/venture capital programs. The Vermont Economic Development Authority (VEDA) is the implementing entity for the state and the program administrator for the LPP and the equity venture capital (funds) program. The Center on Rural Innovation (CORI), Hula, and RDF Ventures administer the equity/venture capital (direct) program through contracts with VEDA.
The credit-support programs — Vermont Loan Participation Program — are described in detail on our business loans in Vermont page.
Who qualifies for targeted grants in Vermont?
Eligibility for most real grant programs turns on who owns the business, where it is, and what it does. In Vermont, women own 43.8% of businesses (29,951 firms), veterans own 6.0% (4,136), and 43,640 businesses are in rural areas versus 24,347 in urban ones — the split that decides USDA eligibility.
Hispanic owners hold 1.6% of Vermont businesses. The state's largest small business sectors by count are professional and technical services, construction and real estate and rental. 873 small Vermont firms exported goods in 2023, which opens the SBA's State Trade Expansion Program (STEP) — a real grant, administered through the state, that reimburses export-development costs. Where those numbers point: agricultural and food producers fit USDA Value-Added Producer Grants; technology and professional-services firms doing R&D fit SBIR/STTR; businesses in the 43,640 rural locations fit Rural Business Development Grants and REAP; women- and veteran-owned firms should check the SBA's Women's Business Centers and Veterans Business Outreach Centers, which track private grant competitions aimed at them. Small businesses accounted for 62.1 percent of Vermont employment in 2022, which exceeded the national small business employment share.
Source: SBA Office of Advocacy 2025 profile (Annual Business Survey and Nonemployer Statistics by Demographics, 2022; Census import/export profile). Ownership shares include equal and majority ownership.
Where can Vermont business owners get free help?
The Vermont SBDC gives no-cost, confidential consulting — including help finding programs you qualify for and preparing applications. The SBA's Vermont District office connects owners to lenders, SCORE mentors and Women's Business Centers.
Vermont small business facts
| Measure | Vermont |
|---|---|
| Small businesses | 81,949 (99.0% of all businesses) |
| Small business employees | 157,959 (62.1% of employees) |
| Net jobs from small businesses | increase of 1,533 (96.1% of total) |
| CRA-reported loans ≤ $1M (2023) | $376.5 million |
| CRA-reported loans ≤ $100K (2023) | $166.6 million |
| SSBCI programs | 3 (1 credit support), run by Vermont Economic Development Authority |
Source: SBA Office of Advocacy, 2025 Small Business Profile for Vermont (Census, BLS, FFIEC CRA data); U.S. Treasury SSBCI program list.
What if a grant will not come through in time?
Grants are slow and competitive; most Vermont owners who need money this quarter use a loan or a revenue-based advance instead. The lowest-cost route is a bank loan, often backed by an SBA guarantee or one of Vermont's SSBCI programs. The fastest is a revenue-based product that approves on bank deposits.
In 2023, banks reporting under the Community Reinvestment Act made $376.5 million in new loans of $1 million or less to Vermont businesses — $166.6 million of it in loans of $100,000 or less. For speed, Same Day Business Fund refers business owners to ROK Financial, whose revenue-based programs typically need about 4 months in business and $10,000 or more in monthly sales. We may be compensated when a referral results in funding; that never changes the price you pay. Same-day products are priced with a factor rate, not an interest rate — read what same-day funding costs first.
See all options on business loans in Vermont, or our guides to business grants and bad-credit business loans.
Frequently asked questions
Does Vermont give grants to small businesses?
Which federal grants can a Vermont business apply for?
Where can I get free help finding and applying for grants in Vermont?
Are there grants for women, minority or veteran-owned businesses in Vermont?
What are my options if a grant will not come through in time?
Sources
- SBA Office of Advocacy — 2025 Small Business Profile: Vermont
- USDA Rural Development — programs in Vermont
- U.S. Department of the Treasury — SSBCI programs and contacts
- SBA — Grants; America's SBDC — state network directory