VCLF Community Investment Note

United States of America

Last updated 11 May 2020, by Impactyield.

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The Vermont Community Loan Fund (VCLF) creates opportunities that lead to healthy communities and financial stability for all Vermonters by providing loans, grants and technical assistance for affordable housing, small businesses, child care programs and community-based organizations.

The money VCLF lends comes from the community in the form of interest-bearing impact investments. VCLF investors include individuals & families, corporations & financial institutions, state & federal governments, foundations and nonprofits, faith-based groups and others who want to align their impact investments with their values. VCLF offers these impact investors a vehicle for achieving both financial returns and community impacts. Investors in the Vermont Community Loan Fund may also receive tax benefits.

VCLF is seeking to increase its loan fund through the issuance of promissory notes (hereinafter called “Community Investment Notes”). The investment objectives of Community Investment Notes are to maintain principal, to provide an opportunity to earn a modest financial return and to use these funds to make available financing for projects and businesses that benefit lower-income Vermonters. A range of options is available as to rates, terms and repayment schedules. This investment option is suitable for persons who are interested in investing in a sustainable and socially responsible manner.

Asset class

Fund style

Not listed

Financial description

Financing needs to be met by VCLF include:
1. Loans to land trusts to acquire homes which are sold to leaseholders using a lease-to-purchase scenario;
2. Acquisition and rehabilitation of rental housing by nonprofit organizations;
3. Acquisition and construction loans for affordable housing or social service programs which are expected to receive grants or other long-term, low-interest permanent financing;
4. Loans to provide shelter for people who are developmentally disabled, young adults in SRS custody, individuals who were formerly homeless or elders in shared living arrangements;
5. Loans for acquiring buildings which will be used as food banks, child and elder care services or other programs benefiting low-income Vermonters;
6. Acquisition of property, equipment and working capital for small businesses;
7. Loans to for- and nonprofit child care businesses; or
8. Loans for production-based farm or agricultural enterprise.
Projects are evaluated on several criteria including:
1. The effectiveness with and extent to which the project/business provides resources to the community, encourages full participation, builds capacity and eliminates discrimination;
2. Ability/potential of the applicant to successfully carry out the project or business;
3. Ability of the applicant to repay the loan;
4. Ability of the loan to leverage other financing;
5. The applicant's access to technical assistance; and
6. Inability to find sufficient financing elsewhere.

36 years

of track record


the year funded



Asset manager

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Safe and affordable housing

Universal access to safe and nutritious food

Promote policies to support job creation and growing enterprises

Develop sustainable, resilient and inclusive infrastructures

Increase access to financial services and markets

Impact Category

Key performance indicators

Fund overview

Asset manager: Vermont Community Loan Fund

Product track record: Fund has 36 years of track record

Target IRR: 2.2%

Committed Capital: 37,739,033 USD (US Dollar)

Target return category: Below risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 1987

Vintage year: 1988

Target region: , , ,

Target close date: n.a.

Product term: 1 - 10+ years

Assets under management: n.a.

Investment size: Min: 1,000; Max: 1,000,000; Avg: 130,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 3

Fund investments to date exited or repaid: 2

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Breakdown of investor category, based on $ outstanding as of 12/31/16: 39% Individuals & Families, 27% Federal Government, 11% Banks, 8% Faith-based Institutions, 4% State & Local Government, 4% Other Community Development Financial Institutions, 3% Foundations, 2% Other Nonprofits, 1% Corporations, 1% Other

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Other Institutional Investors, Retail Investors


E-mail: n.a.


Phone number: 802-223-4423

If you wish to have your details removed from this database please email

Jake Ide

Director of Development

Will Belongia

Executive Director

Impact Performance


Impact thesis

Since its inception, the Vermont Community Loan Fund has made approximately 950 distinct loans exceeding $95M, with an estimated impact of creating or retaining jobs for 5,600 Vermonters, building or rehabilitating safe, affordable homes for 4,000 Vermont households, creating or retaining quality early childhood care & education for 3,850 children and financing community organizations serving hundreds of thousands of Vermonters.
Organizational goals, as stated in our Articles of Association (rev. 11/2013):
- Make loans and provide assistance to projects that provide access to and control over housing, access and availability of quality early childhood education and care, access and availability of essential community services and economic opportunities including employment for low- and moderate-income and other disadvantaged groups;
- Encourage the elimination of discrimination in access to housing, child care, credit and economic opportunities;
- Promote models of ownership or tenant control that prevent speculation and guarantee that housing remains affordable for successive generations;
- Support projects and educate and advocate for activities that lead to beneficial impacts on the natural environment; and
- Educate and advocate for investments in affordable housing, early childhood education and care, community services, small businesses and entrepreneurship, the revitalization of neighborhoods, downtowns and the working landscape.

Impact Management


Financial benchmark

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