Business Oppotunities in Community Development Lending

Business Opportunities in Community Development Lending

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

Slides and handouts pdf

  • Vision for
    Affordable Housing
  • 5 Lenders
    1 Deal

  • Slides

  • Presenting Organizations

  • Sponsors

Will Belongia of the Vermont Community Loan Fund: “There’s obviously some multiplier effects around the development of affordable housing.”

Challenges in 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.
VCLF affordable housing in Vermont
The Vermont State Treasurer's capital gaps study aims to identify these and other needs for capital in the state. Contact the state treasurer for more info.

"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.

VSJF Capital Continuum

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.

More on deal structure. pdf

Detail of the capital continuum. pdf

Slides and handouts

  • Cheryl Fatnassi, Opportunities Credit Union
  • Beth Pearce, VT State Treasurer
The Future of Vermont Housing Finance
Small Business: The Collaborative Path to the Deal
  • Chris Bailey, Vermont Smoke and Cure
  • Justin Bourgeois, Community National Bank
  • Marie Dussault, VT Economic Development Authoritypdf
  • Janice St. Onge, VSJF Flexible Capital Fund, L3Cpdf

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


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.

"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

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Focus on Community Development Lending

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.

Additional Resources