Vermont leads New England through lending targeted to aid startups, add jobs, and prioritize minority access to capital. Bakers, shopkeepers, plumbers, and welders are just a few of Vermont’s newest entrepreneurs. Statewide, these locally-owned businesses are charting new ground in the retail and service sectors with the help of Community Capital of Vermont, located in Barre. Out of 24 microloan intermediaries throughout New England, Community Capital of Vermont provided the most Small Business Administration (SBA) microloans in 2014.
The faces of Vermont’s newest entrepreneurs reflect the character of Vermont: authentic, service-oriented, invested in community, and innovative. Recent trends include dining, wellness, and the production and sale of Vermont specialty foods.
“With these loans we are creating new investment in downtowns, the working landscape, and Vermont-made products,” noted Martin Hahn, Community Capital Executive Director.
Chocolate and wellness services take their place on the list along with lawn care and salons. More than half of Community Capital of Vermont’s loans are to startup businesses; 43 percent to women owned businesses; and 70 percent to lower income entrepreneurs. Since 2011, Community Capital of Vermont’s loans have helped create or retain over 200 jobs.
Community Capital invests in entrepreneurs who do not have ready access to conventional financing. Credit history and collateral come into play with traditional loans; in addition social barriers to traditional investment include gender, race, culture, and income. “Community Capital of Vermont provides equal access with an open door to anyone with the will to succeed in business,” stated Hahn. “Lenders can be intimidating. We see opportunity where others see risk.”
As a microloan intermediary, Community Capital is a nonprofit community-based organization with experience in lending. Intermediaries administer the SBA Microloan Program by providing direct loans small business owners who lack the collateral or credit history to qualify for a traditional bank loan. Community Capital makes loans as small as $1,000 and up to $100,000.
“Community Capital of Vermont has only been an SBA microlender for fewer than two years, but today they are leading the region,” said Darcy Carter, SBA Vermont District Office Director.
Source: Community Capital of Vermont www.communitycapitalvt.org.