VTDigger has received a Paycheck Protection Program loan through the Coronavirus Aid, Relief and Economic Security Act (CARES) Act.
The loan, guaranteed by the U.S. Small Business Administration, covers 2½ months of payroll expenses and will help sustain operations for the online nonprofit news organization based in Montpelier. A portion of the loan can be forgiven if payroll remains relatively constant. Any part that is not forgiven must be repaid over two years at a 1% interest rate.
The Vermont Journalism Trust, the charitable organization doing business as VTDigger, authorized acceptance of the loan in late April.
Anne Galloway, executive director of the Trust and editor of VTDigger, said the online-only news organization sought the SBA loan because of the economic upheaval caused by Covid-19 and related business closures that have led to losses in underwriting support. The loan, which was approved by Northfield Savings Bank, covers an 8-week period through June 30. Under certain criteria, the loan may be converted to a grant.
“We are extraordinarily fortunate that we qualified for the loan,” Galloway said. “Thanks to the tireless efforts of our finance manager and support from experts at the American Journalism Project, we were able to submit the PPP application on the first day the program was offered.”
Government funding for journalism in the United States — outside limited monies for local public radio and TV stations through the Corporation for Public Broadcasting — is highly unusual. VTDigger is among several other news organizations in Vermont, including Seven Days, the Brattleboro Reformer and the Bennington Banner, that have been approved for CARES Act loans.
“We want to reassure readers that the independence of VTDigger’s journalism is under no threat as a result of accepting money from the federal government,” Galloway said. “The SBA has no control over the internal operations of any business, including ours.”
The need for accurate, timely reporting on the state’s response to Covid-19, the health effects of the disease, and upheaval in the state’s economy has never been more critically important to the well-being of the community. As the only nonprofit online news organization in Vermont, VTDigger is dedicated to ensuring that readers have access to all of the news needed to participate in a democratic society.
We are very grateful to the readers, foundations and underwriters who make our work possible.