Who can borrow, and for what

The Bristol Selectboard established three primary goals for lending from this program: public safety purposes, lower income housing improvements or development, and economic development including infrastructure improvements. The fund has been used for all of these, with the focus in recent years on economic development.

We have no list of requirements aside from the guideline that the applicant be someone who lives in or near the community or has strong ties to the project. The project must be located in Bristol.

Loan amounts have varied from a few thousand dollars to as much as $100,000. There are no rules on the maximum or minimum amount of any one loan. Our main constraints are the cash on hand, a project’s merit and anticipated applications.

How the fund works

The fund makes dollars available to projects that may not qualify, in part or at all, with conventional lenders. With many of our loans we have partnered with banks, VEDA and the Addison County Economic Development organization to provide full funding for an eligible project. Occasionally we have assumed the entire risk on a loan.

Our lending rates tend to be slightly lower than those of traditional lenders. The goal is to see the fund’s gross balance grow and keep pace with inflation, so it can provide meaningful dollars indefinitely. There is no profit motive. All loan receipts are paid back into the fund.

How to apply

The process is straightforward. Paperwork is available at the Town Clerk’s office or online. The application covers the loan amount, its purpose, how it benefits the community and a business plan with a balance sheet that shows how the loan can be repaid. All outstanding loans must be spelled out, as well as other proposed lending. The Committee and Selectboard want any information that will give them confidence in the project’s viability.

The completed application goes to the Revolving Loan Fund Committee, which consists of seven community members. After a thorough review, the Committee makes a recommendation to the Selectboard on whether to accept the application and recommends loan terms. If the Board approves, the loan package goes to the Town’s attorney so the documents can be drawn up.

Applicants can expect to pay a modest fee for the attorney’s work and for the time the Town Clerk and Treasurer spend on the application. Committee members are not paid for their efforts.

Questions

Contact Dan Werme, Chair of the Revolving Loan Fund Committee, at dwerme@mbvt.com, or ask at the Town Office.