Keep Capital
In Community

Entrepreneurship is a way of life for Vermonters, and for many low- to middle-income residents business ownership is an economic necessity, supplying income for individuals and families. However, their good business ideas often go unrealized due to a lack of capital and business development support. And this is where Community Capital comes in.

As the director of Community Capital, a local institution that provides loans and other business support services to so-called "high-risk" entrepreneurs, I see each and every day the vital role entrepreneurs play in Vermont communities. These are your neighbors who are starting or expanding a business but are unable to obtain a bank loan.

Unlike traditional bank loans that take a narrow review of applicant's collateral and credit score, our loan decisions are based on a comprehensive analysis of the entrepreneur and their business idea. By coming to Community Capital, burgeoning entrepreneurs are able to avoid racking up credit card debt and asking family or friends for loans.

One of our borrowers is Kris Miceli, the founder of Vermont Green Grocer in Richmond. "I always had the drive to be my own boss and to make a difference. Community Capital provided me with start-up capital to help me turn my vision into a reality."

Or consider Claire Fitts, the founder and owner of Butterfly Bakery in Montpelier. She was pursuing her passion, baking at odd hours in a rented kitchen. She was denied a loan by a local financial institution that would have enabled her to expand her business. Community Capital gave her the loan she needed AND enlisted the aid of a business consultant to help her market her products. Claire is now thriving in her own space.

Since our first loan in 1997, Community Capital has provided $2.3 million in loans to over 100 businesses that have in turn created more than 250 new jobs. Since 2001, we have also provided 45 of our borrowers with over 1,095 hours of specialized and industry-specific business consulting services and $4,900 in business education mini-grants to help guide them on their paths to success.

We take our job of helping Vermont businesses and Vermont communities seriously. According to an evaluation conducted by the University of Vermont's Center for Rural Studies, 96% of our clients stated that they are "better off today" because of their loan through Community Capital. The study also concluded the following:

On average, 2.3 owner and employee jobs are created per Community Capital client. Part-time employees are hired at an average hourly rate of $12.25/hour and full-time employees at an average hourly rate of $13.00/hour. Almost three-quarters of clients indicated that their cash flow has somewhat to greatly improved since they received their loan.

Over the next five years, we will make $2 million in loans to 200 business owners—that's a quadrupling of our efforts! But because interest earned on loans cannot ever fully fund all of the critical business support we provide our borrowers, we require ongoing public and private support.

Community Capital is a 501(c) (3), which means that your donation is tax deductible. As 2007 comes to an end, we hope Vermonters around the state will consider a tax-deductible gift to Community Capital. I can't think of a better way to enrich our communities. For more information, please visit our website at www.cvcapital.org.

Hollie Friot

Montpelier