Release Date: Monday, December 13, 2021
The Brattleboro Development Credit Corporation was recently selected to be a US Small Business Administration microloan intermediary. BDCC has received a commitment of $350,000 from the SBA to lend to small businesses throughout southern Vermont.
BDCC is only the third SBA microloan lender in the state of Vermont, along with Community Capital of Vermont in Barre and Vermont Community Loan Fund in Montpelier. It will primarily serve the southernmost counties, providing direct loans up to $50,000 to small businesses. The average microloan in the U.S. is about $13,000.
The Brattleboro Development Credit Corporation is a private nonprofit economic development organization that serves to drive industrial and commercial growth throughout southern Vermont. BDCC is one of 12 Regional Development Corporations providing economic development services to each region of Vermont. The new SBA lending is part of BDCC’s efforts to expand the portfolio of financial products available to borrowers who need alternatives or supplements to traditional commercial loan products available through private lenders.
“The SBA is very pleased to welcome BDCC as its newest lender. This partnership will help increase access to loans for startups and underserved communities with reasonable rates and terms,” said Darcy Carter, SBA Vermont District Office Director. “BDCC will provide pre and post loan advising to the applicants and borrowers, improving the businesses’ opportunities for successful growth. The beauty of the SBA microloan program is that extra assistance on the part of the microlender which understands the needs of startups and microbusinesses.”
Microloan intermediaries are nonprofit community-based organizations with experience in lending and technical assistance. BDCC also provides loans through the U.S. Department of Agriculture’s Rural Microentrepreneur Assistance Program, through the Windham County Economic Development Program, and through KIVA as part of BDCC’s partnership with Rural LISC – Local Initiatives Support Corporation.
As a microloan intermediary, BDCC serves as a stepping stone for entrepreneurs, helping them build sales, experience and credit to become successful and bankable businesses. Microloans can be used for working capital, inventory, furnishings, equipment and more. The maximum repayment term allowed for an SBA microloan is six years. Since 2011, microlenders have funded $688 million to over 50,000 businesses throughout the nation. There are about 150 active microlenders throughout the country.