GetFundedUSA › Grants › General › Vermont Capital Access Program (VCAP)
Vermont Capital Access Program (VCAP)
General · Vermont Economic Development Authority (VEDA) · VT
The Vermont Capital Access Program (VCAP), run by the Vermont Economic Development Authority, is a credit-enhancement program that helps Vermont businesses and nonprofits get bank loans up to $500,000 by backing those loans with a loss reserve — it's not a direct grant and must be accessed through a participating lender.
The Vermont Capital Access Program (VCAP) is a credit-enhancement program administered by the Vermont Economic Development Authority (VEDA), not a direct grant to businesses. It works by building a pooled loan-loss reserve, funded through premiums paid by borrowers and lenders and matched by VEDA. This reserve backs commercial loans made by participating banks, allowing those lenders to extend credit — up to $500,000 per loan — to Vermont businesses that might not otherwise qualify for conventional financing.
For a small-business owner, VCAP matters because it doesn't hand out cash directly; instead it reduces the risk a bank takes on when lending to you, which can make the difference between an approved loan and a declined application. Businesses apply through a participating commercial lender rather than through VEDA directly, and the lender determines the loan terms, while the VCAP reserve sits behind the loan as a safety net for the bank.
Eligible entities include most types of Vermont businesses, including nonprofits, as long as they are authorized to operate and physically located in Vermont, and are borrowing through a lender that participates in the program. Because VCAP works through banks rather than a standalone application portal, the exact loan amount, current terms, and which lenders currently participate should be confirmed directly with VEDA or a participating bank.
This program is best understood as a financing tool to improve loan access rather than a source of free money. Business owners considering it should check with VEDA or their bank about current program rounds, reserve availability, and any recent updates, since program details can change over time.
Who qualifies
How to apply
Questions people ask
Is VCAP a grant or a loan?
It's neither directly — it's a loan-loss reserve that backs commercial bank loans, making lenders more willing to approve financing.
Do I have to repay the money?
Yes, because VCAP supports a bank loan, not free money; the loan itself must be repaid to the lender under its terms.
Who runs this program?
The Vermont Economic Development Authority (VEDA) administers VCAP.
Who is eligible?
Vermont businesses, including nonprofits, that are authorized to operate and located in Vermont and borrow through a participating lender.
How much funding can I get?
Loans backed by VCAP can go up to $500,000, though the exact amount depends on the lender and your loan terms.
Is there a deadline?
The listing says to check current rounds; there is no fixed deadline given, so confirm at the official source.
Where do I apply?
Through a participating commercial lender in Vermont, not directly through VEDA; see https://www.veda.org/financing-options/vermont-commercial-financing/vermont-capital-access-program/.
Is the funding taxable?
This isn't specified in the available facts; confirm at the official source.
Can out-of-state businesses apply?
No, eligibility is limited to businesses located and authorized to operate in Vermont.
Does VCAP fund nonprofits?
Yes, nonprofits authorized to operate in Vermont are included in eligible entities.
What kind of costs does VCAP cover?
It covers potential loan losses for the lender, not specific business expenses directly.
Do I need a specific lender?
Yes, you need to work with a commercial lender that participates in VCAP.
Is this the same as a state grant?
No, it functions as a credit-enhancement tool rather than a grant, despite being labeled 'Grant' in the funding instrument field — confirm this distinction at the source.
Opportunity number: not published. Source: curated + verified (official state source, 2026). GetFundedUSA is independent and not affiliated with Vermont Economic Development Authority (VEDA); always confirm current deadlines, amounts and eligibility on the sponsor's own page before applying.