Burlington, VT – Today, Mayor Weinberger and the Burlington Department of Business and Workforce Development announced the launch of a two-tiered, zero-interest revolving loan program, totaling $500,000, to stabilize and support the growth of Burlington’s small businesses. The funds will be available to underserved business populations who have traditionally faced barriers to accessing capital.
“As Vermont’s largest City, our community has been on the frontline of the social and economic recovery for our region and our state,” said Mayor Miro Weinberger. “This new ARPA funded revolving loan fund will allow the City to better support our local, women-owned, and BIPOC-owned small businesses to ensure a just, equitable, and vibrant economic future for our City.”
During the 2023 fiscal year budget process, City Council approved the use of ARPA funds to launch this program with a specific interest in supporting BIPOC and women-owned Burlington businesses. The City team has engaged local lending experts to assist on an underwriting committee aimed at dispersing funds in as low barrier of a manner as possible.
With interest rates on the rise nationally, the City expects these two funds to fuel the creation and expansion of new and well-loved Burlington businesses.
“By creating revolving loan programs, the City will have a sustainable tool to support the growth of Burlington businesses and ensure the health of our beloved local business community,” says Kara Alnasrawi, Director of Business and Workforce Development. “This program was structured into two tiers, with different underwriting criteria, to support the various needs, both large and small of our business sector”.
“Over 90% of Burlington small businesses are locally owned and make up the backbone of our economy,” says Will Clavelle, Assistant Director, Business Development. “These small businesses, particularly BIPOC and women-owned businesses, have historically faced barriers to accessing capital. We are excited to lower these barriers and promote equity by launching these two zero interest revolving loan programs. Each program will support different segments of our business community with access to capital and support new and existing Burlington businesses for years to come.”
The Burlington Small Business Revolving Loan Fund
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The first tier of the program will be smaller loans of $1,000 to $15,000 with no interest or fees to Burlington microbusinesses administered by Kiva, a global microlending institution.
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The second tier will be the Burlington Revolving Loan Program (BRLP), which is aimed at supporting larger businesses with greater financial needs and will be administered by City staff.
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The BRLP will offer loans from $10,000 to $40,000 and while interest free, this program does include administrative fees.
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These new lending opportunities are designed to lower barriers to accessing capital, and will allow the City to better support Muslim-owned businesses as both loan programs are zero interest.
Eligibility for Funds
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The place of business must be within the City of Burlington. This is defined as brick-and-mortar businesses in Burlington, home-based businesses in Burlington, or businesses who operates in Burlington for the majority of the year.
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Applicants must be current on taxes and terms of existing City financial assistance.
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Applicants must be a registered business with the State of Vermont.
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Loans may only be used for working capital, inventory, equipment, rent, furniture and fixtures.
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Loans may not be used to support national brands, to refinance existing debt, or to support a business in the industries of firearms, cannabis, liquor, or tobacco.
Further information for loan fund applicants, including translated materials, can be found at www.burlingtonvt.gov/BWD
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