It’s a seemingly normal Tuesday in Vermont. Parents in Randolph drop their kids off at a local childcare center on their way to work. Friends meet up for lunch at a popular local café in Waitsfield. A young couple in St. Johnsbury signs a lease on an apartment they can actually afford.
On the surface, these moments may sound ordinary. But behind the scenes is something less visible that makes them all possible: a pool of capital, quietly circulating through Vermont communities, funded by everyday people. These are individuals who choose to put their money to work supporting important needs close to home. They’re impact investors with the Vermont Community Loan Fund.
A different kind of lender
VCLF is a Community Development Financial Institution that funds small businesses, affordable housing, nonprofits, and childcare centers throughout Vermont. As a mission-driven lender, we fill in the gaps left by traditional banks and other capital providers, through fair and responsible financing. When traditional lenders see risk, we see an entrepreneur with a great idea, who just hasn’t had their shot yet.
The capital from impact investors that makes our loans possible funds projects that strengthen the state. This isn’t charity. It’s real financial investments with real returns that build something tangible in towns across Vermont.
A farm, a farmhouse, and a community’s vision
Nowhere is that Vermont community spirit more evident than at the Pittsford Village Farm. The 150-acre historic property in the heart of town was donated by a local couple with a specific intention: to turn it into something that would benefit the whole community. A nonprofit was formed to do exactly that.
They got to work creating community gardens, outdoor play space, a summer concert series, and a performance pavilion. The 22 acres of open meadow, with views across the Otter Valley, became a place for walking, hiking, cross-country skiing, and public events. But the centerpiece of the vision was still ahead. The farmhouse itself, a historic 8,500-square-foot structure that had sat largely vacant, was waiting for its next chapter.
That chapter took years to write. Starting in 2018, community meetings drew hundreds of Pittsford residents, helping shape a carefully considered plan: renovate the farmhouse into a multipurpose hub housing a childcare center, two affordable apartments, a café, and a community gathering space, all under one roof.
The Pittsford Village Farm raised significant funding for the project but needed a lender willing to bridge the gap between costs and available funding during construction. That’s where VCLF came in. Our loan, made possible by our impact investors, is allowing the farmhouse renovation to be completed. Later this year, a long-vacant building will be brought back to life as a place where families find childcare, neighbors gather, and people find an affordable place to call home.
When finished, the project will create six new full-time jobs, serve 26 children and their families, and add two affordable apartments to a town that needs them.
One investment, endless impact
When a loan like that of the Pittsford Village Farm is repaid, those dollars are recycled and lent again to a new borrower, funding a new project, and creating new outcomes. In nearly 40 years, VCLF has deployed close to $170 million this way, and has never failed to repay an impact investor, with interest, on time.
These days, impactful community projects don’t often happen because of a single government program or large donor. They happen because a growing number of Vermonters decide to align their savings with their values and because VCLF is there to put that capital to work.
Learn more
If you’re curious about how impact investing works and whether it might be right for you, the Vermont Community Loan Fund is hosting free virtual info sessions this spring. These sessions are designed to be approachable and informative, with no pressure to invest.
Our next session is taking place on April 16 at noon. You can register here or visit investinvermont.org to learn more about how you can invest locally while supporting the causes you care about right here in Vermont.
The Vermont Community Loan Fund is a mission-driven, community-focused alternative lender and Community Development Financial Institution providing loans to Vermont businesses, nonprofits, childcare providers, and affordable housing developers. Our work is funded by impact investors, and in nearly forty years, we’ve never failed to repay an investor, with interest. Learn more at investinvermont.org.