The Huntington Revolving Loan Fund, like many municipal loan funds in Vermont, evolved out of a Vermont Community Development Program grant. The grant was then used by the Town as an Economic Development Loan to the Fuller House Post Office Project in Huntington. Now, the repayments on that Economic Development Loan provide the source of funding for the Huntington Revolving Loan Fund (HRLF).

The HRLF is one of several municipal loan funds that Community Capital operates. Others include the Barre City/Barre Town RLF that funds small businesses and the East Montpelier RLF that funds both small businesses and owner-occupied housing rehabilitation (Community Capital contracts the housing portion of the RLF out to the Central Vermont Community Land Trust. In all cases, Community Capital actually owns the loan fund assets but is under contract with the municipality to loan funds exclusively to community residents. In the case of Huntington, the loan funds are designated for both small business and owner-occupied housing rehabilitation with a particular focus on serving low to moderate income individuals. As with the East Montpelier RLF, Community Capital sub-contracts the housing portion of the HRLF to the Champlain Housing Trust.

As of March 2007, Community Capital and the HRLF Loan Committee have finalized loan policies and completed marketing materials. The loan fund is now open for business with approximately $40,000 to lend. Over time, the loan fund will grow in value to over $300,000 as a result of ongoing repayments from the Fuller House Post Office Project loan.

For more information on the Huntington Revolving Loan Fund, contact Community Capital Senior Loan Officer Chris Rottler at [email protected] or 802-479- 0167.

Our expansion statewide wouldn't be successful without a clear understanding of the needs of our clientele. In October 2006, we engaged our industry association - Opportunity Finance Network - to conduct a statewide market study on our behalf. The results of that study are now in!

The market study confirmed our hunch that credit cards are one of the primary sources of financing for microbusinesses. Capital One, in fact, is the number one business lender in Vermont. Microbusinesses responding to our market study confirmed that personal credit cards, along with loans or gifts from family and friends, are the primary means for financing business start-up and expansion.

We also learned that there continues to be unmet demand for microbusiness loans throughout the State and that the current supply of microbusiness capital is insufficient to meet that demand. While this may seem an obvious conclusion to some, there are those who might think otherwise. This conclusion makes the case for ongoing funding and support of microbusiness loan programs like Community Capital and Job Start.

We also learned - thanks to feedback from over 30 of our peers - that Community Capital is well-positioned to provide "entry- level" loans to microbusinesses statewide. That is, Community Capital is structured and funded in a way that helps it to deliver the kind of loans that microbusiness owners who are not familiar with or unable to borrow from traditional banks need. This confirmation that Community Capital is heading in the right direction gives us the confidence to continue tweaking and modifying our loan programs to meet the specific needs of these microbusinesses.

There are other interesting observations from the market study that we would like to share with you. At this time, however, only the Executive Summary is available for your review. A full public version of the study will be available on our website by the end of April, so please check back!

Bill H.453 was introduced to the House Commerce Committee on March 1st by Representative Pugh of South Burlington. The bill involves relocating the Job Start Loan Fund from the Vermont Economic Development Authority (VEDA) to the Offic e of Economic Opportunity and contracting the administration of the loan fund to a nonprofit community development financial institution like Community Capital.

This bill comes on the heels of the Job Start Advisory Board's decision in 2006 to support Community Capital of Vermont's proposal to administer the Job Start Loan Fund. Community Capital has been working side by side with VEDA and the Job Start Advisory Board to move Bill H.453 through the Legislature.

If you are interested in learning more about the Job Start Loan Fund, please contact Job Start Coordinator Cheryl Pickreign at 802-828-5466 or email her at [email protected]. If you are interested in Bill H.453, please contact Emily Kaminsky at 802-479-0167 or Mary Niebling at 802- 479-1053, ext. 257.