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Business
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Bristol's Small Business Loan Fund
Question: What do the film The Wizard of Loneliness, Roy's Automotive, and small business funding in Bristol have in common? ... Answer: They all directly benefited from the wise management of some community development funds which the Town of Bristol received way back when, and which are still hard at work almost 20 years later. ... The original
funding ... Among other things, VCDP funding has helped to build affordable housing in Middlebury, Bristol, and Vergennes, including the rehab of some of Vergennes's historic buildings. It has also been the source of seed funds for planning downtown revitalization. The funds have even helped to build the new one-stop facility up on Boardman Street that has been the home of the Addison County Community Action Group [ACCAG] since the summer before last. The VCDP funding takes the form of either loans or grants. Towns or organizations which receive loan funding must re-pay the amounts over time. But either way, there is one aspect of such funds that many are not aware of: Often, though not often enough, towns or organizations which wisely manage the initial funding do so in such a way that on-going funds become available for a variety of uses once the original grants or loans have expired. That is precisely what happened in Bristol. The Bristol experience ... Since then, Bristol has established a Revolving Loan Fund with some of the proceeds of that original funding. ... That's where Roy's Automotive comes in. Roy Dyke, the proprietor of Roy's Automotive, was one of the most recent recipients of a loan from the now well-established Fund. A while back, he decided it was time to expand his facilities out on Plank Road. To do so, Roy planned for an addition to his existing building to house a customer service and waiting area, thereby freeing up space in the already-existing facility for a small body shop, to complement his increasingly full-service operation. That's when he turned to Bristol's Revolving Loan Fund. With this plan in mind, Roy set out to fill in the blanks for the Loan Fund application -- a fairly straightforward process -- including estimates for the work, details about matching funds, income history and projections, and so on. He also had to address how his project would meet one or more of the key criteria for eligibility. With the closing of two auto service shops in Bristol, Roy's is the only auto service shop left within walking distance of the downtown. As a result, his business had already seen an increase. But his facility wasn't up to the task of taking on more customers, and more employees, without the addition. So, application materials in hand, Roy went to the Revolving Loan Fund, which is administered by Bristol's Community Development Advisory Board, and within several weeks, he had the commitment. ... Now, with winter in the wind, he's finishing the interior of the new addition so that his service rep can meet customers in a warm and welcoming place and, just as importantly, he begin to convert the freed-up shop space to other uses. In fact, he's even already hired a new part-time apprentice as part of his expansion plans. Roy's Automotive is only one of a number of local businesses which have benefitted from Bristol's Revolving Loan Fund since it's inception. According to Bob Hall, "At least a dozen entities have received loans so far, including a couple of restaurants, a couple of small businesses for start-up funding," and more. Others have included Tom Wells' Dunshee Block development, the Bristol Family Center, the old Illuminé du Monde, which was since sold to Honey Lights, and even the Bristol Rec Dept. Loans have also been used for a variety of purposes -- from the start-up funds mentioned earlier to both the purchase and renovation of buildings. "Each loan is handled individually," Bob noted. "It usually works best when someone already has some of the funding from the bank, but need a little more." "We haven't had any defaults so far, which is great," Bob said, understandably with at least a little pride. "Right now, we have about $350,000 out there, which leaves about $120-$150,000 for loans." The loans have ranged considerably in size, too. "They're not huge," Bob told us. "Most have been in the $5,000 to $20,000 range." "We did give a grant, not a loan, to the Water Dept. once," Bob added. "It was a one-shot deal and they really needed the funds. But after that, the Selectboard reviewed the guidelines and made a few revisions, which are all in the guidelines we send out now." Loan Fund Guidelines ...
With respect to the miscellaneous revenues in particular, the Guidelines note that they may be used "for all program income activities and also ...
The Guidelines go on to add that these funds "may be used for any legitimate business purpose ...
The only overt restriction noted was that funds may not be used "to finance or refinance existing company assets." If you're interested in more information about Bristol's Revolving Loan Fund, or would like to receive a copy of the application, you can contact the Town office. ... Town Clerk's Office . ******* ******* If you would like to submit an article for our Small Business Resources section, don't hesitate to let us know. Simply e-mail us at business@downstreetmagazine.com. The e-mail should contain your name, address, and a phone number where we can reach you. You may also send a copy of your proposed article. The text can either be included in the body of the e-mail, or you can send it as an attachment in just about any word processing format. If your piece is accepted, we will pay a small honorarium for your interest & your time. [See Freelancers Wanted for more details.] ******* ******* If you would like to advertise in this section, or throughout the magazine, please visit our Advertising Info Pages ... or call, write, or e-mail ads@downstreetmagazine.com. ******* ******* . |
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