MONTPELIER, Vt. – Community Capital of Vermont was recently selected to be a U.S. Small Business Administration microloan intermediary and has received a commitment for a $300,000 SBA loan to invest in small businesses in Vermont.
Community Capital of Vermont is only the second microloan intermediary to serve the entire state of Vermont, which provides direct loans up to $50,000 to small businesses.
“Community Capital of Vermont helps small businesses prosper through flexible business financing,” said Martin Hahn, Community Capital of Vermont’s executive director. “As a microloan intermediary, Community Capital will be able to expand the scope of its business lending and will result in new partnerships with entrepreneurs seeking to start or grow their business.”
Microloan intermediaries are nonprofit community-based organizations with experience in lending and technical assistance. They administer the microloan program to make loans to business owners who lack the collateral or credit history to qualify for a traditional bank loan. As a microloan intermediary, Community Capital serves as a stepping stone for entrepreneurs, helping them build sales, experience and credit to become successful and bankable businesses.
“This new partnership with Community Capital of Vermont will help increase access to loans for startups and underserved communities with reasonable rates and terms,” said Darcy Carter, SBA Vermont District Office Director.
Microloans can be used for working capital, inventory, furnishings, equipment and more. The maximum repayment term allowed for an SBA microloan is six years. In 2010, SBA microloan intermediaries provided nearly $45 million to more than 3,800 businesses throughout the nation.
Vermont Community Loan Fund in Montpelier is also a statewide microloan intermediary. Northern Community Investment Corporation in St. Johnsbury is a microloan intermediary serving Essex, Orleans and Caledonia counties.
For more information about Community Capital of Vermont, call 802-479-0167 or visit www.communitycapitalvt.org.