Vermont Community Loan Fund

Overview

The Vermont Community Loan Fund (VCLF) is a nonprofit, mission-driven, community-focused alternative lender and Community Development Financial Institution (CDFI). The organization focuses on creating opportunities for healthy communities and financial stability for all Vermonters by providing loans and business development services to local businesses, community organizations, nonprofits, child care providers, and developers of affordable housing[1][2].

History

Established in 1987, VCLF has been transforming Vermonters' lives by facilitating access to financial resources that support long-term community development. Over the years, the organization has committed substantial resources to address issues of poverty and enhance economic opportunities for low-income Vermonters[3][4].

Objectives

The primary objectives of VCLF include:

• Financial Stability and Job Creation: VCLF aims to create or preserve jobs and stimulate economic growth by providing financial resources to small businesses and community organizations. As of recent updates, VCLF has created or preserved over 7,800 jobs[2][3].
• Affordable Housing and Community Services: The organization provides financing for affordable housing projects, early care and learning programs, and essential community services. To date, it has helped build or rehabilitate over 4,800 affordable homes and supported quality care for more than 5,100 children[2][3].
• Addressing Poverty and Inequality: VCLF focuses on providing financial and technical assistance to those who cannot access it through traditional lenders, emphasizing social equity and justice[1][2].

Programs

VCLF offers a range of specialized programs tailored to address specific community needs:

• Agritourism Program: Provides lower-cost capital for projects that enhance on-farm experiences and tourism.
• Food, Farms & Forests Fund: Supports Vermont’s working landscape by offering financing to small farms and food producers.
• Justice Forward Fund: Focuses on supporting BIPOC business owners.
• TRAILS Program: Offers financing for the outdoor recreation industry[1].

Investment and Funding

The funds lent by VCLF are sourced from impact investors who seek both financial returns and social benefits. These investors include individuals, families, businesses, faith-based groups, foundations, and governments. VCLF offers Community Investment Notes with flexible repayment terms, allowing investors to align their investments with their values while supporting Vermont's economic and social development[1][3]. The organization has a strong track record of repaying investors, having loaned over $150 million without failing to repay any investor[4].

Impact and Achievements

Through its lending activities and community development initiatives, VCLF has significantly contributed to Vermont's economy by creating jobs, building affordable homes, and enhancing community services. The organization continues to be a leading voice in promoting capital-based solutions to issues of poverty and opportunity in Vermont[2][3].

[1] https://www.investinvermont.org/publications/Vermont%20Community%20Loan%20Fund%20-%20Offering%20Memorandum.pdf [2] https://www.guidestar.org/profile/shared/2ae36f64-f935-40bd-8420-3cde6d810212 [3] https://www.investinvermont.org/about/ [4] https://www.investinvermont.org [5] https://www.investinvermont.org/invest/why-i-invest.html