Business Opportunities in Community Development Lending
Vermont
Report of a meeting in South Burlington, VT
Friday, June 8, 2012
Treasurer Beth Pearce wants to partner with Vermonters on capital gaps study. In this video, she describes some goals of the study.
Bankers and community development experts traded perspectives.
- Borrowers. lenders and investors described how they worked together—often over years—to accomplish goals in affordable housing and small business financing.
- The Vermont state treasure sought input on a statewide study of capital gaps.
- Affordable housing experts outlined challenges related to decreasing Federal resources.
- 5 lenders described the return to productive life of an old cheese processing plant.
Conclusion: Collaboration gets community development deals done. For-profit financial institutions, community development financial institutions, economic development agencies, government organizations, angel investors, venture capitalists, regulatory experts: all have a role.
Experts talk about community development lending: more videos
To cosponsor a meeting on community development lending, contact Claire.M.Greene@bos.frb.org.
- Vision for
Affordable Housing - 5 Lenders
1 Deal
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Slides
Presenting Organizations-
Sponsors
Will Belongia of the Vermont Community Loan Fund: “There’s obviously some multiplier effects around the development of affordable housing.”
- In Vermont, the number of households is growing.
- Households aged 45+ account for all growth.
- There is a mismatch between large, older homes and small houseolds.
- Rental vacancy rates are low.
- Location of housing does not match the location of jobs.
"Don’t forget the state, we have an ability to deploy capital for homeownership. States are not getting enough discussion in the context of housing finance reform."--Sarah Carpenter, VT Housing Financing Agency
All along the capital continuum, lenders to Vermont Smoke and Cure collaborated to help this growing business triple its space and to revitalize a vacant and run-down facility.
Vermont Economic Development Authority pieces together a small-business loan: Marie Dussault of VEDA describes challenges.
A community banker, nonprofit lenders, government guarantors, the state economic development authority and others cooked up this deal.
USDA and SBA guarantees were critical to the structure.
A community development block grant to the town of Hinesburg, VT, was part of the package.
The Vermont Sustainable Jobs Fund provided royalty financing.
Slides and handouts
Welcome
- Cheryl Fatnassi, Opportunities Credit Union
- Beth Pearce, VT State Treasurer
The Future of Vermont Housing Finance
- Will Belongia, VT Community Loan Fund
- Sarah Carpenter, VT Housing Finance Agency
- Nancy Owens, Housing Vermont
- Brenda Torpy, Champlain Housing Trust
Small Business: The Collaborative Path to the Deal
- Chris Bailey, Vermont Smoke and Cure
- Justin Bourgeois, Community National Bank
- Marie Dussault, VT Economic Development Authority
- Janice St. Onge, VSJF Flexible Capital Fund, L3C
Commentary
- Kenneth Willis, Federal Home Loan Bank of Boston
- Jeff Fuhrer, Federal Reserve Bank of Boston
Vermont organizations share local knowledge
- Burlington Housing Authority
- Champlain Housing Trust
- Community National Bank
- Federal Home Loan Bank of Boston
- Housing Vermont
- Vermont Economic Development Authority
- Vermont Housing Finance Agency
- Vermont Smoke and Cure
- VSJF Flexible Capital Fund, L3C
Sponsors
During 2011-12, the Federal Reserve Bank of Boston is organizing meetings about business opportunities in community development lending throughout New England as part of its commitment to promoting sound growth and economic development in the region.
- Federal Reserve Bank of Boston
- Federal Deposit Insurance Corporation
- Office of the Comptroller of the Currency
- Opportunities Credit Union
"The Fed is eager to help facilitate new partnerships to accomplish commercial and residential lending, especially in LMI communities."
Jeff Fuhrer, Federal Reserve Bank of Boston
Stay Connected
Presentations: Business Opportunities in Community Development Lending, November 9, 2012, Meriden, CT.
Meeting Report: Business Opportunities in Community Development Lending, March 30, 2012, Manchester, NH.
Meeting Report: Business Opportunities in Community Development Lending, November 18, 2011, Springfield, MA.
"The Story of a Sausage Business," from Winter 2013 issue of Communities & Banking
Community Development Glossary
"Recently Certified CDFI Banks and the CDFI Banking Sector," 2011
“CDFIs and Banks: Addressing the Financing Needs of Small Business,” 2011
“Lending to Small Business: The Evolving Bank-Nonprofit Lender Relationship,” 2010
“CDFI Business Lending Grows During Recession,” 2009
“Strength in Adversity: Community Capital Faces Up to the Economic Crisis,” 2009
“Charter School Facilities Finance: How CDFIs Created the Market, and How to Stimulate Future Growth,” 2008
“Not Just a Financial Institution: Measuring Success by Looking at the Double Bottom Line,” 2007