There are an increasing number of commercial loans available to Vermont businesses. A number of commercial lenders offer “quick loans” or “EZ cash” via the internet (or use spam email, pop-up ads, or text messages). In some instances, the company may be soliciting commercial loans on behalf of a lender. Here in Vermont, commercial lenders and loan solicitors are required to be licensed, or otherwise exempt from licensure AND must clearly state rates, terms, and conditions. Below is information on how to protect yourself from illegal loans.
Lender licensing
Unless it is a federally or state chartered entity, such as a bank or credit union, or a federal or state agency, a lender operating in Vermont should be licensed with the Department of Financial Regulation.* Additionally, companies soliciting loans on behalf of a lender should be licensed with the Department. You can check the licensure status of a lender or a loan solicitor online at NMLS Consumer Access.
If the lender or loan solicitor is unlicensed, you may file a complaint with the Department of Financial Regulation. Call 802-828-3307, 888-568-4547, or email DFR.BnkConsumer@vermont.gov (for security reasons, please specify “Unlicensed Lender complaints” in the subject line).
*For additional exemptions from the lender licensing statute, see 8 V.S.A. §2201 (d), (h).
Interest rates
Under Vermont law, commercial loans are not subject to Vermont’s interest rate caps, and a commercial loan may charge any rate of interest that is negotiated between the parties. See 9 V.S.A. § 46.
However, the rate of charge must be clearly and fully disclosed. See 8 V.S.A. § 2225.
A commercial lender also cannot mislead or deceive you about the rates, terms or conditions of the loan. Misleading or deceptive advertising around a loan is illegal. See 8 V.S.A. § 2226.
How to assure you’re getting a legal commercial loan
Make sure the lender is: – licensed, – a chartered bank or credit union, – a state or federal agency, – or otherwise exempt from licensing under 8 V.S.A. § 2201 (d), (h).
Make sure the interest rate, terms, and conditions are clearly disclosed.
Avoid potential predatory practices. Beware of: – “Fast,” “Pre-approved,” “Easy” Loans – “Affordable Payments” – Unclear pricing and terms – Additional fees incorporated into the payment structure – Terms less than 90 days – Lenders that want you to wire money prior to receiving your loan – Lenders that guarantee loan approval but charge a fee in advance – Consulting fees – If you’ve been harmed by an unlicensed commercial lender, submit a complaint to CAP or to the Department of Financial Regulation at 888 568-4547 or DFR.BnkConsumer@vermont.gov.
Below are a list of resources for some of the most pressing concerns in the agricultural industry. Know a link or issue that should be included? Email AGO.smallbusiness@vermont.gov.
You’ve established a business as a sole proprietor in Vermont. Even better – you’re growing and need to hire your first employee. Below are the steps you need to take to comply with Federal and State laws.
A few things upfront. First, if you’re not registered as a corporation or LLC, we strongly recommend you consider changing your registration. Next, employers with more than ten employees have specific record-keeping requirements. If you are hiring a slew of employees at once (yay Vermont jobs!) check out the OSHA site.
1. Federal requirements – What you must do for yourself as an employer
b. Enroll in the Electronic Federal Tax Payment System (EFTPS) to make Federal tax payments (social security, Medicare, Federal withholding). Alternately, you can contact your bank to enroll in your bank’s service to make tax payments under the Electronics Federal Tax Payment system.
c. Complete and file Form 941 – Employer’s Quarterly Tax Return. This determines amounts you must deposit for social security, Medicare, and Federal withholding taxes. It also determines if you deposit on a semi-weekly or monthly basis.
Note: Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.
d. Complete and file an Employers Annual Federal Unemployment Tax (FUTA) return. The FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs, and cannot be deducted from employees’ wages.
Additional information is available at Publication 15 (Circular E) which defines employees, wages and supplemental wages. Also Publication 15-A provides supplemental information, and Publication 15-B provides a guide to taxability and non-taxability of fringe benefits.
2. Federal requirements – What you must do for employees
a. Your employee must complete Form I-9 for Employee Eligibility Verification.
b. Your employee must fill out Form W-4 for income tax withholding.
c. Hold onto these forms for your records.
3. State requirements – Department of Taxes
There are two different accounts to set up with the Vermont Department of Taxes:
a. Set up a Business Tax Account on the SoS Online Business Portal. This will register your business to withhold tax on employee paychecks. You may already have an account if you collect sales & use or meals & room taxes.
b. Set up a myVTax account, which allows you to make online filings for all state taxes.
Note: All businesses should file Form WHT-436 with the State quarterly. Payment frequency to the State will mirror your Federal payment frequency; for example, if you are required to pay your Federal Withholding Tax semiweekly, you are required to pay the Vermont Withholding Tax semiweekly.
If so, register with the Vermont Internet Tax and Wage System to make Quarterly Wage and Contribution Reports.
b. Establish and maintain a worker’s compensation policy
You will need to get a worker’s compensation policy through a private insurer. Your insurer will notify the National Council on Compensation Insurance (NCCI), which will include you on an online database the State can refer to if complaints are received about your business.
If your business is structured as a corporation or an LLC, you may elect to exclude up to four corporate officers or LLC members. In order to do so, you must file a Form 29 with the Vermont Department of Labor.
1099-miscellaneous returns for payments over $600 to individuals (NOT employees)
Federal Form W-3 and Federal Form W-2, with a copy of the W-2 to each employee
State Form WHT-434 Annual Withholding Reconciliation
Businesses are encouraged to speak with an accountant and/or attorney to assure compliance. These folks can also help with best practices and policies for: the hiring process, personnel issues, recordkeeping and insurance.
Questions on the information above can be referred to:
Secretary of State | Corporations Division | 802-828-2386 | sos.corporations.support@sec.state.vt.us
Department of Taxes | Business Division | 802-828-2551 | tax.business@vermont.gov
Department of Labor | Employer Services | 802-828-4344 | labor.uiandwages@vermont.gov
The Landlord Restoration Program (Program) launched in 2017 by the Attorney General’s Office and the Department of Health. The Program provided: (i) information and resources to landlords, (ii) extended time for repairs, and (iii) a waiver of state enforcement for past non-compliance. The Program, which concluded in 2018, was piloted in five Vermont towns that had elevated blood lead levels in children: Rutland, Bennington, Bellows Falls/Windsor, Barre, and St. Albans. Compliance rates suggest that the pilot program was effective in increasing property owner compliance. Compliance rates went up by an average of 14%, with several towns seeing around 20% increases.
A copy of the complete report on the Landlord Restoration Program can be found here.
If you are EMP certified, or have an inspector who is EMP certified, you can comply right away by completing your EMPs and filing your statement immediately:
I can’t complete the EMPs right now. What can I do to get in compliance?
Here are steps you can take to get in compliance with Vermont’s Lead Law:
Get EMP certified or hire an EMP contractor
Do your EMPs
File your EMP compliance statement
When do I perform EMPs?
EMPs are annual obligations. Each year you must inspect your rental property and safely repair deteriorated paint. If you receive a letter to comply within 30 days from the Department of Health, you can request an extension by completing the Department of Health’s Extension of Time form.
How do I perform EMPs?
You can become EMP certified yourself, or hire an EMP contractor, visit: www.leadsafevermont.org. Beware of shortcuts! Make sure your EMP statement is accurate before you file. There are significant penalties for falsely certifying EMP compliance.
My property has been gutted and renovated. Does the law still apply to me?
Yes! If your building has been restored, it still may contain lead. To exempt you from annual EMP filings, a third-party contractor must perform an inspection and prepare a report. This generally costs $500-$1000, and you may be eligible for financial assistance if you rent to low or moderate-income tenants.
What if a tenant makes a complaint against me for a lead violation?
If you come into compliance voluntarily, there will be no State enforcement for past noncompliance. However, the state cannot waive a private claim a tenant may have.
What if I don’t file an EMP statement?
Failure to comply with the lead law, may leave you exposed to a complaint or future enforcement action. Our goal is to support the efforts of Vermonters who wish to comply with the law.
Questions?
Contact the Vermont Dept. of Health, Asbestos & Lead Regulatory Program, by phone at 802-863-7220 or online at www.healthvermont.gov
The law bans questions about an applicant’s criminal history record on the initial employment application form.
Do I have to hire an applicant with a criminal history record?
No. You are permitted to ask an applicant about a criminal history record during an interview or after the applicant has been found qualified for the job. The law is not designed to force you to hire a person with a criminal record. The law is designed so that promising candidates are not simply screened out in the initial application process. You must follow the procedure.
What happens if a candidate informs us about his or her criminal history record after the initial application process?
He or she must be given a chance to explain the circumstances that resulted in the criminal history record and to describe any post-conviction rehabilitation before you decide whether to make an offer. The exception is if a federal or state law prevents you from hiring the applicant.
Are all employers covered?
There is an exception: If a federal or state law bans hiring persons with a criminal history record for the job, then the question can be asked on the initial application. However, if that federal or state law bans only specific types of criminal offenses, then the application can only ask about those offenses.
What’s the penalty for violating the law?
The law provides for a $100 civil penalty per violation. In addition, the Vermont Attorney General may seek a court order to compel compliance with the law . Employers who retaliate against employees who oppose or report violations of the law may also be subject to a private or Attorney General lawsuit for damages.
Finally, violations might also be used as evidence show other violations, such as race discrimination.
