The Vermont Community Loan Fund (VCLF) will strengthen its support of Vermont’s small and micro businesses thanks to a $500,000 loan and grant combination from the U.S. Department of Agriculture (USDA). VCLF will use USDA Rural Development’s Rural Microentrepreneur Assistance Program to provide aspiring small businesses with loans and technical assistance.
“Access to credit can transform a small business from the dream of one dedicated entrepreneur, to a valuable institution providing both jobs and services to a rural community,” said Ted Brady, State Director for USDA Rural Development Vermont and New Hampshire. “When you match this capital with professional technical assistance from a proven organization like VCLF, many more businesses succeed, creating more jobs and ensuring a return on the loan fund’s investment.”
VCLF received a $400,000 loan to bolster their revolving loan fund which currently provides microloans of up to $350,000 to Vermont businesses seeking to strengthen their finances, develop new products, or create new jobs in their local communities. In addition, VCLF received a $100,000 grant to expand business counseling services, such as business planning and accounting assistance, to their borrowers. VCLF estimates that the federal capital added to their business loan fund will assist 88 Vermont businesses and create or preserve 192 local jobs.
“USDA Rural Development has been a longstanding ally and supporter of VCLF’s work ensuring access to capital for all Vermonters,” said Will Belongia, Executive Director of VCLF. “VCLF has been grateful to access loan capital and grant support from USDA Rural Development’s Intermediary Relending Program (IRP) and Rural Business Enterprise Grant (RBEG) program. Now, RMAP will provide another useful tool to help us create opportunities for small, rural businesses with a tangible impact on Vermont communities. We’re thrilled to partner with USDA Rural Development to bring RMAP to Vermont!”
The Rural Microentrepreneur Assistance Program (RMAP) builds the capacity of local lending institutions that provide capital to small rural businesses. RMAP funding consists of capital for a revolving loan fund that lends and relends to local businesses over a 20 year agreement, and an annual grant to support business development through technical assistance. More information on the RMAP program can be found on the USDA’s website. Applications for assistance are due quarterly with an upcoming deadline of June 30. Financial institutions interested in applying can contact Susan Poland, Business Program Specialist at (802) 828-6002 or susan.poland@vt.usda.gov.
The Vermont Community Loan Fund (VCLF) is a flexible, creative, mission-driven lender that creates opportunities leading to healthy communities and financial stability for all Vermonters. They lend to local businesses, community organizations & nonprofits, early care & education programs and developers of affordable housing who can’t access the capital they need from traditional lenders. Since 1987, VCLF has lent over $90 million to create or preserve jobs for 5,200 Vermonters, build or rehabilitate affordable homes for 4,000 Vermonters, seniors and families, create or preserve quality care for 3,700 children and their families and support community organizations providing essential services to hundreds of thousands of Vermonters. To learn more about VCLF’s loan programs or opportunities for locally-focused, mission-driven investing, please visit www.investinvermont.org.
USDA, through its RD mission area, administers and manages housing, business and community infrastructure programs through a national network of state and local offices. Rural Development has an active portfolio of $214 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural areas. For more information on Rural Development visit the Vermont/New Hampshire Rural Development website (www.rd.usda.gov/nh or www.rd.usda.gov/vt ) or contact USDA RD at (802) 828-6000.