Small Business Loans

There are an increasing number of commercial loans available to Vermont businesses. A number of commercial lenders offer “quick loans” or “EZ cash” via the internet (or use spam email, pop-up ads, or text messages). In some instances, the company may be soliciting commercial loans on behalf of a lender.  Here in Vermont, commercial lenders and loan solicitors are required to be licensed, or otherwise exempt from licensure AND must clearly state rates, terms, and conditions. Below is information on how to protect yourself from illegal loans.

Lender licensing

Unless it is a federally or state chartered entity, such as a bank or credit union, or a federal or state agency, a lender operating in Vermont should be licensed with the Department of Financial Regulation.* Additionally, companies soliciting loans on behalf of a lender should be licensed with the Department. You can check the licensure status of a lender or a loan solicitor online at NMLS Consumer Access.  

If the lender or loan solicitor is unlicensed, you may file a complaint with the Department of Financial Regulation. Call 802-828-3307, 888-568-4547, or email DFR.BnkConsumer@vermont.gov (for security reasons, please specify “Unlicensed Lender complaints” in the subject line).

*For additional exemptions from the lender licensing statute, see 8 V.S.A. §2201 (d), (h).

Interest rates

Under Vermont law, commercial loans are not subject to Vermont’s interest rate caps, and a commercial loan may charge any rate of interest that is negotiated between the parties. See 9 V.S.A. § 46

However, the rate of charge must be clearly and fully disclosed.  See 8 V.S.A. § 2225

A commercial lender also cannot mislead or deceive you about the rates, terms or conditions of the loan.  Misleading or deceptive advertising around a loan is illegal.  See 8 V.S.A. § 2226.

How to assure you’re getting a legal commercial loan

  • Consider using local banks and credit unions first, and check out the U.S. Small Business Administration’s Lender Match website.
  • Make sure the lender is:
    – licensed,
    – a chartered bank or credit union,
    – a state or federal agency,
    – or otherwise exempt from licensing under 8 V.S.A. § 2201 (d), (h).
  • Make sure the interest rate, terms, and conditions are clearly disclosed.
  • Avoid potential predatory practices. Beware of:
    – “Fast,” “Pre-approved,” “Easy” Loans
    – “Affordable Payments”
    – Unclear pricing and terms
    – Additional fees incorporated into the payment structure
    – Terms less than 90 days
    – Lenders that want you to wire money prior to receiving your loan
    – Lenders that guarantee loan approval but charge a fee in advance
    – Consulting fees
    – If you’ve been harmed by an unlicensed commercial lender, submit a complaint to CAP or to the Department of Financial Regulation at 888 568-4547 or DFR.BnkConsumer@vermont.gov.

Vermonter of the Month: Luke Stafford

This is a monthly series in which the Attorney General will feature a Vermonter doing exemplary work in their community. Have someone you think should be featured? Email AGO.CAP@vermont.gov.

Luke Stafford owns Mondo Mediaworks, Inc., a digital marketing agency specializing in content development for the web. He earned a BA in Journalism at Saint Michael’s College. After landing in Brattleboro with his wife, an artist, he worked in the marketing department at Mount Snow until 2009. He then founded Mondo, and in the eight years since it has grown into a 17-person shop. The company’s Values Statement is to build its surrounding community through economic development. It is proudly a certified B Corporation (“B-Corp”), which are for-profit companies that meet rigorous standards of social and environmental performance, accountability, and transparency.

Luke also sits on the board of Southeastern Vermont Economic Development Strategies (SeVEDS).

How did you learn about becoming a B-corp, and why was it a fit for Mondo?

I’d been hearing about B-Corps for years, mainly from exposure to certified Vermont brands like King Arthur and Ben and Jerry’s. Because they are such large, product-based companies, I never thought seriously about our small marketing agency being eligible. One day I was explaining Mondo’s mission and values to our accountant, who operates an impact-driven business herself, and she recommended I speak to a local person who is knowledgeable on the certification process. Around the same time, a few of Mondo’s employees were learning about B-Corps. All of a sudden, it seemed doable.

Joining the B Corp movement is a fit for Mondo because, like a lot of companies, we’re run by people. And most people — or, I could argue, all people —  want to contribute  to something bigger than monetary profit in their jobs.

What prompted you to make economic growth in Brattleboro and Vermont as a whole part of Mondo’s mission?

Since I started Mondo in 2010, there was a broad values statement to “give back to the community.” We donated to local organizations and supported local events, but it didn’t go much further than that. Then, in 2015, I got my first glimpse at the data coming out of the Vermont Futures Project, which clearly projected that the Vermont economy would be in big trouble if we didn’t solve some serious problems around workforce and population. I resolved that I couldn’t sit idly by and let the projections become reality.

What impact have you had, with Mondo and independently, on your community?

Last year we paid out hundreds of thousands of dollars in salaries to Mondolians who live, shop and play in the Brattleboro area. Most of those jobs didn’t exist a few years earlier. Of course, we can’t attribute a thriving Main St. or a restaurant opening solely to new Mondo jobs, but it feels great to see new Mondolians investing in the community, whether it’s buying a house or just going to the movies in Brattleboro’s historic theatre. As for myself, I have the privilege of sitting on the boards of my local elementary school and Southeastern Vermont Economic Development Strategies, where I advocate for programs and policies that make Vermont the best place to live for young families.

What inspires your work, both at Mondo and in the community?

You’re going to start thinking that I’m an overly obsessed fanboy, but really, it’s Vermont. Not just the lifestyle, but the landscape, the people, the… everything. I knew I was going to be a Vermonter immediately after my first snowboarding trip to Stratton when I was 14, and I can’t imagine myself living anywhere else. Specifically, my inspiration comes from my weekend hobbies: snowboarding, logging and processing firewood from our property, maple syrup making. Lately, my best ideas are surfacing during  pop-up camper trips with my family to Vermont State Parks. The four of us are working to join the “251 Club,” whereby we visit all 251 towns in the state. We’re only about 10% of the way through, but it’s been a great way to explore the state and make memories with our 2 daughters. Check with me in 10 years to see if we’ve hit all 251.

What have you learned from this community work?

Democracy is alive and well in Vermont. I was blown away when I attended my first Town Meeting Day. It’s a very beautiful thing that everyone in this state truly has a voice. But it’s also the frustrating thing, right? Because for everyone who wants to see change, there is someone who likes things the way they are, thank you very much. When I moved to Brattleboro 13 years ago, I got involved with a committee to build a skatepark in town, thinking we’d be able to accomplish the goal within a few years. But some townspeople did not want a skatepark in the downtown area. Their voices were heard loud and clear, which I very much respect. But it means that getting things done can take a long time. In the end, though, I trust the process.

What advice do you have for others looking to impact their community?

I understand that big time commitments to boards or volunteerism is not always possible. But I would argue that little gestures, added up, have a much bigger impact. Picking up a piece of litter on the street makes for a cleaner downtown. And that clean, inviting sidewalk may be the small detail that reminds residents, “Hey, this really is a great town. I love it here.” That person will speak highly of the town to others, and the message continues to spread. Our everyday actions, and how we choose to speak about our communities, have huge consequences.

What advice do you have for businesses considering a B-corp certification?

First, it’s not easy to be certified. At least it wasn’t for us as a young company. But it spurred us to make a lot of “grown up company” decisions about our policies and standards. It took us about 9 months and we hired a consultant/project manager to get everything we needed in place. Today, we have an employee who maintains our B-Corp status as part of her job, which involves everything from monitoring our electricity usage to organizing our volunteer days. But it’s 100% worth it. Some of our best job applicants come through the B-Corp job board, and it’s a helpful distinction during the recruiting process. We regularly attend B-Corp-sponsored events, where we’ve met other B-Corps and shared ideas about sustainable ways to grow our companies. But the biggest piece of advice I could give is that your values at the company come first; if it aligns with B-Corp requirements, awesome. But stay true to your values, always.

Resources for the Agricultural Industry

Below are a list of resources for some of the most pressing concerns in the agricultural industry. Know a link or issue that should be included? Email AGO.smallbusiness@vermont.gov.

Forms of Credit Available to Farmers

Food Safety Requirements

Intellectual Property and Labeling

Legal Options for Distressed Farmers

Vermonter of the Month: Darcie McCann

This is a monthly series in which the Attorney General will feature a Vermonter doing exemplary work in their community. Have someone you think should be featured? Email AGO.CAP@vermont.gov.Darcie McCann has served as the Director of the Northeast Kingdom Chamber for 23 years. She is a native of the Northeast Kingdom, and supports her community in myriad ways.

Darcie is an avid sports fan, known for her chocolate chip cookies, writes a biweekly column for the Caledonian-Record and has been involved in many local community groups and organizations. This includes: mentoring local students, serving on the boards of the Northeastern Vermont Regional Hospital and Burklyn Arts Council, participating in the Regional Tourism Council and her local church, and supporting Vermont chambers across the state as President of Chamber Benefits, Inc.

Darcie tirelessly promotes the NEK as a place to visit, or live and start a business. She travels to Eastern states and Canada, and plans the Colors of the Kingdom and Business Celebration events through her role at the Chamber. She also spearheaded the creation of an Online Business Resource Guide — an exceptional effort to bring vibrancy back to the Kingdom.

Darcie returned to the Kingdom after a career in journalism, after serving as the executive editor of the Wellesley Townsman in Massachusetts and a reporter and section editor at a San Diego paper. She worked in college public relations at Merrimack College and Lyndon State College before taking the Northeast Kingdom Chamber post. Married for 29 years, the recently widowed mother of two adult children is looking forward to her daughter getting married in May 2018.

How did you get involved with the Chamber?

I got persuaded to try for the Northeast Kingdom Chamber position by the previous director, a good friend, who was leaving the post for another job.  I figured I would stay at the chamber job, tops, for 10 years … and here I am, celebrating my 23rd year at the chamber. I wouldn’t be here if I didn’t still love it and it wasn’t a challenge. I never know what the next day will bring.

How have you supported the community through your work with the Chamber?

Working at a chamber in the Northeast Kingdom means that you not only have to look at the economic climate of the region but also its socioeconomic variables. I have tried to not only get involved with regionwide and statewide organizations that strengthen the economic landscape but look at the reasons why we have historically had the weakest economy in the state and work to solve those problems as well.

How does supporting the NEK business community support the community at large?

The Northeast Kingdom business community is, in fact, your neighbors. What we strive to do at the chamber is to remove some of the roadblocks that businesses face to help our fellow residents succeed. We not only help bring in additional business through aggressive marketing but also save them money through our many discount benefit programs. I am a native of the Kingdom. I think that is one of the reasons I am still here at the chamber after 20 years; when you love a place so much, you want to see it not only flourish but thrive.

What advice do you have for others looking to impact their community?

My advice for anyone thinking of helping out in their community or region is that it is not a burden but a privilege. I have gotten far more from being involved in the Kingdom than I have given, I can tell you that. I have gained a legion of friends, satisfaction from helping the Kingdom and a really broad and diverse support system. If you love what you are doing, it is never a chore.

Vermonter of the Month: Jimmy Cochran

This is a monthly series in which the Attorney General will feature a Vermonter doing exemplary work in their community. Have someone you think should be featured? Email AGO.CAP@vermont.gov.

Born in Burlington, Jimmy Cochran is the son of Bob Cochran, one of the “Skiing Cochrans” family of Richmond. Jimmy was on the U.S. Ski team from 2005-2009. He represented the U.S. in the Winter Olympics in 2006 and 2010, and in the World Championships in 2005, 2007, and 2009. Jimmy is now at the helm of Cochran’s, the nation’s first IRS 501 (c)(3) tax-exempt ski area, as general manager.

Cochran’s ski area was started by Mickey and Ginny Cochran in 1961 in the backyard of their property in Richmond. It hosts weekly races and training for eight local high schools, shares the hill with 800 kids from elementary school programs, facilitates races and training for the next generation of Olympic hopefuls in the Cochran Ski Club, and provides an approachable and accessible place for youngsters to learn to ski. As it says on their website, “No child will be denied the opportunity to ski or ride.”

What sets Cochran’s apart from other ski areas? What is the mission?

Cochran’s is unique as a non-profit ski area. Our mission is to provide affordable skiing and race training to local kids and families. This means that Cochran’s is directly supported by the community we serve. Pretty much everyone that skis or snowboards here has in some way given time or money. In this way we are really more of a co-op.

Many wonderful people have found little (and big) ways over the last 57 years to make this ski area go. My favorite thing about this place is how many different people are willing to get emotionally invested. Every day people show up look around, create and act on a vision that could be something like improving hiking and mountain bike trails, making snow, teaching kids to ski, fixing equipment, helping to run races, or making dinner for our Friday community ski night.

This support even comes from the bigger ski areas. They recognize that by helping Cochran’s introduce new folks to the sport, many of those families will graduate to a bigger mountain in a season or two. When we need a part for a broken snow-cat or a snowmaking pump dies (knock on wood), we have a huge network to call on.

The community impact primarily consists of kids and families being given the opportunity to be included in a predominantly exclusive sport.

What goes into a “Friday Community Ski Night”? 

“Friday Night Lights” is our community ski night. $5 ticket, $12 dinner (kids $6), a dual slalom course and laps on the famously fast rope-tow. Dinner is made by a volunteer family/s. I’m always amazed at the culinary alchemy that occurs in our little snack bar.

How many kids/families have skied at Cochran’s for low or no cost? 

Effectively everyone that skis at Cochran’s is skiing at low cost. 1/3rd of our yearly operating budget comes from donations and ALL capital improvements have been paid for with fundraising dollars. We also aim each year to provide at least 10% of passes, tickets, lessons, training fees to be free for deserving families.

What advice do you have for others looking to impact their community?

Don’t be afraid to ask for help, recognize that there is a ton of background work required for a volunteer to be productive, let things develop, change, and be imperfect as the situation merits, and most importantly… say thank-you thank-you thank-you thank-you thank-you.