Nonprofit Directly Supports Vermont Economic Growth

I have been looking at the role of nonprofits in the Vermont economy.   I just learned about Community Capital of Vermont, a 501(c)(3) nonprofit aimed at injecting vital investment into the entrepreneurial economy at the critical start-up phase, to support economic development, financial independence, job creation and the creative economy.

Vermont’s entrepreneurial economy depends on the ability of small and even micro-sized businesses to take root and grow into substantial enterprises that create jobs, support the local economy, and foster economic synergies and vibrancy.  But starting a business is difficult. Most business owners need financing from a third party at a critical juncture to propel the business into success.  Start-ups and young entrepreneurs often lack the collateral, business track record and credit history required to obtain bank financing when an injection of funds is most needed.  Especially in tough economic times like the present, inability to obtain bank financing can stifle entrepreneurial activity.

Community Capital of Vermont offers loans of up to $50,000 to entrepreneurs who do not yet qualify for bank financing.  Community Capital offers commercial loans only, not personal loans.  Borrowers also benefit from 10 hours of consulting in an area of their choice, such as accounting, marketing or inventory management, paid for by Community Capital.  This type of ongoing support can mean the difference between success and failure for a fledgling business.  My father Bill Polk was a small business counselor in southern Vermont for many years, helping entrepreneurs in the arts, trades, farming and other sectors to manage the financial aspects of their businesses and learn business skills to commercialize their products and services.  From Dad’s experience, I learned that many business owners are creative, innovative, talented and know their market but don’t know how to run a business.  Community Capital pays for business consulting services for its borrowers as part of its mission to support entrepreneurial success, not just generate income on its investment.

Community Capital’s flagship success story is Autumn Harp, a manufacturer of non-petroleum lip balm and cosmetics in Bristol, Vermont.  According to Community Capital, Autumn Harp’s founder, Kevin Harper, cites an initial loan of $5,000 from Community Capital over 20 years ago as the most important financing loan the company ever received because it launched the business from an idea into operation.   

This is a great example of how the nonprofit sector can directly support the for-profit business sector.  And in addition to funding private business, Community Capital employs engaged professionals who contribute to the rich social and economic fabric of Vermont.  Director Emily Kaminsky has a masters degree in community and economic development and experience with international development.  Community Capital employs three loan officers, including Lending Director Chris Rottler, a lawyer who chose to pursue a mission-based career in community lending rather than practicing law.  Community Capital borrowers can rely on Emily, Chris and their colleagues for support and guidance on an ongoing basis, which adds value to Community Capital’s financing.  By providing good jobs for Emily, Chris and their colleagues, Community Capital also supports the creative economy by retaining these vital professionals in Vermont.  Kudos to Community Capital and its board for its contribution to Vermont’s economic health.