For 32 years South Barre’s Bob McLane worked for other people.  And while he enjoyed his work and took pride in the job he did, he never got the opportunity to do what he really wanted to do – go into business for himself. 

But thanks to an innovative program that grows Vermont’s economy by helping budding entrepreneurs, that all changed when McLane’s B&L Towing opened for business last June.

“It feels good to be on my own because I am doing something that I enjoy,” said McLane.  “A lot of people go to work everyday and hate their jobs.  I like my job.”

McLane’s transition from employee to small business owner was made possible by an $18,000 business loan he received from Community Capital of Vermont’s Job Start loan fund.  The program provides microloans to entrepreneurs who are unable to access bank financing because of lack of a business track record or financial resources.

The loan allowed McLane to make the capital investments required to start his towing company, including purchasing a flat-bed truck and assorted tools.

“There is no possible way I could have done it on my own,” said McLane, who has worked with and around cars nearly his whole adult life. 

And while loan assistance is a major part of how Community Capital of Vermont helps would-be businesses, it isn’t the only thing they do to help them get up and running.  Recognizing that business owners are more likely to succeed if they have access to ongoing support, Community Capital of Vermont has a network of business consultants who work with owners on a range of business-related issues, including marketing, budgeting, financial planning and even inventory control.

For McLane, who started B&L Towing because he likes working with cars not balance sheets and revenue forecasts, this part of the program was particularly helpful.

“It helped me understand more about business and how to manage it better,” said McLane, who says that without the private consultations he would have had to use some of his scarce resources to hire an accountant.  “I would recommend Community Capital of Vermont to anyone seeking to start a business.”

Established by the Vermont General Assembly in 1978, the Vermont Job Start loan fund had previously been administered by the Vermont Economic Development Authority.  After a review of which entity was best suited to administer the program, the Vermont General Assembly last year authorized the program’s transition to Community Capital of Vermont. 

“The Vermont Job Start loan fund very much fits within the Community Capital of Vermont’s mission,” said Emily Kaminsky, the organization’s director.  “Since 1995 we’ve been helping entrepreneurs so we know the struggles Vermont business owners face as well as the how the community and state benefit when they flourish.”

The program was transitioned to Community Capital of Vermont with a portfolio of 20 borrowers with outstanding loans totaling $179,160 and cash to lend and support operations totaling $485,513.  The Vermont General Assembly has also appropriated $57,965 for FY 09 to cover a portion of Community Capital of Vermont’s operating expenses associated with the program, but that falls well short of the estimated $100,000 needed to run it.

However, Kaminsky isn’t deterred by the potential shortfall.

“Just as we put a lot of faith in the entrepreneurs that we help, we are putting our faith in this important program,” she says.