REDC is a non-profit, community-based organization. Our mission is to encourage and enhance business success in Rutland County.

To help fulfill this mission, REDC provides fixed rate loans through its Revolving Loan Fund. REDC’s Revolving Loan Fund provides businesses with loans of between $5,000 – $150,000. As loans are repaid, they are reinvested by REDC in the form of new loans to other businesses. To learn more about REDC’s Revolving Loan Fund please see below.

REDC also works with other partners such as Vermont Economic Development Authority (VEDA) and Small Business Administration (SBA) as well as private and alternative lenders. 

Ready to learn more? Contact Tyler with questions.

olivia's croutons revolving loan fund REDC.jpg

REDC partnered with area lenders and the Town of Brandon to finance a $3 million expansion project for Olivia’s Croutons.

This was an aggressive expansion and it was the next logical step for our business. Structuring the financing for this next step was a complicated process, and without all of the financing partners working together this couldn’t have happened for us. REDC was a crucial piece in this.
— Francie Caccavo, co-owner and President of Olivia's Croutons

Revolving Loan Fund FAQs

Who qualifies for REDC’s Revolving Loan Fund?

Funds are available for both existing or startup businesses. REDC’s program is unique because it can finance businesses that are having difficulty obtaining traditional financing due to the unproven nature of their business, their small size or unconventional product line. REDC works extensively with local banks and financial institutions, often serving as the “gap financing piece” to help meet the unmet funding needs of area businesses. Loans are available for a wide range of initiatives, from working capital to installing new machinery or buying land and/or buildings. REDC is an equal opportunity lender, with funds available on a non-discriminatory basis and in accordance with Title V of Publication L, 93-495, the Equal Credit Opportunity Act. Funds for these loan programs have been provided by USDA Rural Development.  

What can REDC’s Revolving Loan Fund be used for?

Eligible loan purposes include:

  • Machinery and equipment purchase

  • Business acquisitions to keep a business from closing

  • Leasehold improvements

  • Pollution control and abatement

  • Transportation services

  • Startup costs, including feasibility studies

  • Working capital

  • Aquaculture

  • Hospitality

  • Commercial nurseries, forestry, livestock and poultry processing, mushroom growing, and hydroponics.

What can REDC’s Revolving Loan Fund NOT be used for?

Ineligible loan purposes include:

  • Refinancing existing debt

  • Lines of credit

  • Agricultural production

What are the rates and terms?

The interest rate is prime plus one percentage point with a floor of 5.5%. All rates are fixed for the term of the loan. Terms will vary depending upon the type of financing and typically range from three to ten years (loans for buildings or land purchases may have longer terms). REDC funds are available to finance up to 75% of all project costs.

A non-refundable $100.00 application fee is required. If the loan is approved, a 1% commitment fee is required and closing costs may apply.

How do I apply?

Applications may be obtained by calling the REDC office at (802) 773-9147 and are also available online (below). As with other lenders, REDC’s Revolving Loan Fund requires the development of a sound business plan clearly describing the business and the proposed use of the new funds. The plan should address the industry and its trends, the market, and the company’s management and operations. Historical financial information is required along with projected operating results. Download a Revolving Loan Fund Application

When are applications reviewed?

Applications are reviewed monthly by the Finance Committee. The meeting schedule and deadlines are available by contacting the REDC office. A non-refundable application fee is required.