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802-479-0167
Fax: 802-479-2867
P.O. Box 342
107 N. Main Street, Suite 7
Barre, VT 05641
E:mail: info
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Images Courtesy of
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Images Courtesy of
Image Relay
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Community Capital of Vermont March 2008 E-Newsletter
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An Alternative Financing Source
for Vermont Entrepreneurs
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March 2008 - Vol 3, Issue 3
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In This Issue
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Equity Links
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Greetings!
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From Emily Kaminsky, Director
Welcome to our March 2008 e-newsletter. This issue, we introduce you to Ed Williams, owner of Resolution Collaborative in Springfield.
Here at Community Capital, we've been working on a new loan product that provides patient capital to new businesses that have an extended startup timeline. As part of our research and product development, we have been checking in with angel investors and venture capitalists to connect this product with early stage equity opportunities. Stay tuned for more information. In the meantime, visit the links at left for Angel and Venture Capital resources!
Other articles this month include:
- Entrepreneurship Working Group Convening
- Vermont Job Start
- Recent Policy Changes
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When Ed Williams wanted to launch his architectural and construction consulting business, he turned to Community Capital of Vermont for help. Last month, Ed joined the ranks of entrepreneurs around the country with the inception of Resolution Collaborative, LLC.
Williams has been serving the construction and architecture industries and the legal community for over 18 years with his consulting expertise. He has worked in project development, prepared building assessments and helped clients embroiled in disputes or litigation over existing projects. His thoroughness and diverse skill set result in well- executed projects and timely resolutions to challenging construction issues.
"We're thrilled to help Ed and to see his new business begin to thrive," said Community Capital Director Emily Kaminsky. "Our business exists to help people who do not meet all the requirements for traditional bank financing. We are proud to support Ed Williams and Resolution Collaborative."
Ed met with Community Capital to secure funding for his project and hit the road running. "Community Capital has given me the chance to chase my dream," he said. "Because of them I have the opportunity to really grow my business."
Learn more at www.resolution-collaborative.com or call (802) 263 -5535. Community Capital is proud to support Ed!
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On April 16th in Randolph from 10:00 to noon, join Community Capital at the Vermont Entrepreneur Working Group Convening. Business leaders, educators, opinion leaders, economic development professionals, legislators, and small and micro business service providers are invited to work on identifying collaborative strategies and initiatives to promote entrepreneurship in Vermont.
At the moment, the Vermont Entrepreneurship Working Group is a small group of people who coordinated activities for Vermont Entrepreneurship Week. The group currently includes Community Capital, the Vermont Commission on Women, Department of Economic Development, Vermont Small Business Development Center, Department of Education, and Johnson State College. The goals of the Working Group are to:
Promote: To highlight and advance entrepreneurship as the backbone of Vermont's economy through coordinated media releases, entrepreneurship week events, and other outlets.
Connect: To encourage coordination and collaboration amongst the financial and non-financial support services for all types of entrepreneurs through regional and statewide convenings and online forums.
Inspire: To inspire a new generation of entrepreneurs by encouraging the integration of entrepreneurship into our K-16 education system and the creation of community-based learning and other opportunities for youth to explore entrepreneurship as a viable career goal.
Engage: To engage public policy makers, businesses, and other opinion leaders around creating an entrepreneurial culture in the State of Vermont through legislative advocacy initiatives.
There are three initiatives that the Working Group hopes to launch with the help of attendees:
- Host online discussions and networking on the state of entrepreneurship in Vermont.
- Coordinate efforts to celebrate entrepreneurship year-round, but specifically during February National Entrepreneurship Week and November Global Entrepreneurship Week.
- Advocate for an Office of Entrepreneurship at the State level to provide focused coordination of initiatives and strategies to support entrepreneurship.
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The enactment of H.737 into law on March 6, 2008 has brought the timeline for transitioning Vermont Job Start from VEDA to Community Capital closer. The transfer is scheduled for May 1, 2008! As of February 29th, the Job Start program has approximately $500,000 to lend and 17 loans outstanding valued at $183,000.
The Job Start program at Community Capital will operate similarly as it has at VEDA. In fact, because the Job Start program is so similar to the way Community Capital already operates, we have made only a few minor adjustments to accomodate the Job Start loan fund.
Applicants will apply to Community Capital using Community Capital application forms. Their loan will be underwritten using Community Capital underwriting policies. Applicants who are approved and whose household income meets the Job Start criteria (80% of median income) will become part of the Job Start portfolio. Whereas at VEDA, Job Start borrowers could only receive $25,000, they will be able to request up to $50,000. If approved, Community Capital will fund up to $25,000 of the request through Job Start loan funds and the remainder through Community Capital funds.
Job Start loans will be priced according to risk on a spectrum from 9.00 to 11.00%. This interest rate applies for all other Community Capital loan products. The Board of Directors will review the interest rate from time to time and make adjustments to account for organizational sustainability needs and to be responsive to the market.
Applicants who qualify for Job Start will get a break on the origination fee. Instead of paying 1% of the loan request, the origination fee will be a flat $25 due at the time of closing. Job Start loan recipients - those currently in the Job Start portfolio and those that are originated by Community Capital - will be eligible for Community Capital's Post-Loan Technical Assistance program.
If you have any questions about the program, please contact Community Capital's Lending Director Chris Rottler at [email protected] or 802-479-0167.
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As of March 13, 2008, Community Capital has made the following changes to its policies and procedures.
- Increased Loan Maximum Size Statewide from $25,000 to $50,000. Loans of $50,000 can now be made statewide. For borrowers requesting up to $50,000 and who qualify under Job Start (80% of median income or less), Community Capital can fund the project by using up to $25,000 from Job Start funds and $25,000 from Community Capital's other funding sources.
- Interest Rates are no longer pegged to Wall Street Journal Prime. Interest rates are now set by the Board of Directors at a range of three percentage points taking into account Community Capital's average cost of funds, long-term sustainability goals, and the market place. Interest rates will be set by the Board from time to time and will be posted on Community Capital's website. Effective March 13, 2008, interest rates are 9.00% to 11.00% according to risk. Applicants will still be assigned an interest rate in accordance with risk at the time of underwriting. The interest rate will be fixed for the life of the loan.
- Loans $10,000 and less will be decided upon internally. Staff can decide upon loans that are less than $10,000. All other loans will continue to go to the Regional Loan Committee for decision.
- Loans that do not meet certain basic underwriting criteria can be denied internally. Staff are currently working with a consultant to identify which criteria shall be used to allow a loan to be denied internally.
- Phase in of 3 new application types. Community Capital will change its application requirements in the near future (target date June 1st) to allow for a more streamlined application process: 1. Small loans requesting $10,000 or less, 2. Start-up Businesses requesting $10,001 or more, 3. Existing Businesses requesting any loan amount.
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If you have news that you would like featured in any of our upcoming e-newsletters, please contact me at 802-479-0167 or [email protected]. Until next time...
Sincerely,
Emily Kaminsky , Community Capital of Vermont
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