Community Capital of Vermont - Final Evaluation Report

I conducted a 3-year evaluation of process and outcome measures to determine best practices, the impact of services, and the development of a replicable model for the Community Capital of Vermont (CCV). This final evaluation report presents cumulative data collected from staff, key project partners, stakeholders, and borrowers from October 1, 2005 to September 30, 2008, with inclusion of key data collected through the one year extension period through September 30, 2009. This report initially reviews process evaluation results in discussing the CCV project implementation, including loan financing and post-loan TA provided over the course of the grant. Project outcomes are measured through borrower focus groups, follow-up telephone surveys conducted with borrowers six months to two and a half years post loan closing, and borrower data collected by Loan Officers during the application process and at the end of the grant. For more information about this study or to request additional copies of this report, please contact Michele Cranwell Schmidt, Evaluation Coordinator, at mschmidt@uvm.edu, call (802) 656-0256 or visit www.uvm.edu/crs/.

Community Capital of Vermont (CCV), a nonprofit Community Development Financial Institution (CDFI) making micro and small business loans in the central Vermont region since 1997, proposed to expand its loan and post-loan technical assistance (TA) services statewide over a three year period. This strategic decision was made by CCV in light of two primary concerns: 1) the longevity of the State's statewide micro-credit program, the Vermont Job Start Loan Fund, was in question following an in-depth assessment of its re-capitalization and staffing needs, and 2) CCV's desire to implement its mission to support micro and small business development on a wider scale and thereby improving its own program sustainability. Statewide expansion was achieved due in part to a grant from the U.S. Department of Health and Human Services' Office of Community Services (OCS) grant #90EE0715 to Central Vermont Community Action Council (CVCAC) of which CCV was a sub-grantee.

By 2008, CCV had transitioned its organizational infrastructure and service delivery from a regional to statewide focus and acquired the assets of the Vermont Job Start Loan Fund. All activities were undertaken in partnership with a wide variety of statewide and regional partners including CVCAC and the other Community Action Agencies (CAAs) operating in Vermont.

For the period of October 1, 2005 to September 30, 2008, CCV had the overall goal of lending $1,470,000 in loans to 96 micro and small businesses that in turn create 144 jobs, of which 60% will be filled by low income individuals whose household income and family size places them at or below 150% of the federal poverty level guidelines. At the end of OCS grant following a one year extension through September 30, 2009, CCV had in fact made loans totaling $1,864,721 to 93 micro and small businesses owned by 120 people. Of the 93 businesses, 57% (53) were owned by a low-income owner. Including owner jobs and employees, these businesses created 165 FTE jobs and retained 149 FTE jobs for a total of 314 FTE positions created and/or retained.

Highlights from CRS Statewide Survey of Vermont Women Entrepreneurs

The Center for Rural Studies (CRS) at the University of Vermont recently conducted a survey of Vermont Women's Business Center (VWBC) participants. This statewide survey was conducted in June of 2009 and contacted 1,446 past and current VWBC participants. A total of 304 clients completed the telephone survey, representing the larger client pool with a 95% confidence interval and plus or minus 5% margin of error. The study measured the impact of VWBC services on the lives of participants who sought to start or expand their own business.

Survey results showed that 53% (86) of clients started a business after working with the program and 71% (61) of start-ups were still in operation after an average of 3 years (range of 5 months to 7.5 years). This survival rate is higher than the Small Business Administration's 2008 national average survival rate of 66% after 2 years and 44% after 4 years. Respondents' businesses have created and sustained 174 full-time jobs and 76% of owners have also hired part-time employees to help run operations.

A strong majority, 89% (139), indicated that their business has a positive net worth and calculated gross profit rates ranged from 10% to 100% for the majority of respondents (87%, 98). With most businesses generating a profit, two out of three owners reported earning household income from business revenue and 25% stated that this is their primary source of income. Participants were also asked questions to assess skill development and personal changes experienced because of VWBC services. Skill gains most commonly noted include marketing and sales (44%, 132) and writing a business plan (37%, 112). The survey also explored changes in participants' personal outlook and perspective after working with the VWBC. Nearly half, 49%, feel more self-confident, 32% are more motivated and encouraged to carry out their passion, and 11% broadened the scope of their possibilities.

VWBC services have facilitated many positive outcomes for Vermont women business owners. Participants expressed high satisfaction rates of services and individual assistance received from VWBC business counselors. Most (81%, 234) agreed that VWBC met their expectations and 63% (133) attributed their business success in part to VWBC services. Linda Ingold, Director of VWBC said, "I am pleased to see statistically how the Vermont Women's Business Center is effecting positive economic change for Vermont's women, families and the State as a whole."

CRS is a nonprofit, fee-for-service research organization. CRS provides process and outcome focused evaluation services for social service and government agencies. Service areas evaluated in the past ten years include microenterprise development, education and literacy, teen leadership, restorative justice for youth, and domestic violence services. For more information about this study or to request additional copies of this report, please contact Michele Cranwell Schmidt, Evaluation Coordinator, at mschmidt@uvm.edu, call (802) 656-0256 or visit www.uvm.edu/crs/.

The VWBC is a statewide program of the Central Vermont Community Action Council (CVCAC) and funded in part through a cooperative agreement with the U.S. Small Business Administration. The VWBC offers programming tailored to the needs and experiences of aspiring and established women entrepreneurs from a central office located in Barre, Vermont and via subcontracts with Vermont's four other Community Action Agencies. For more information please contact Linda Ingold at (802) 479-7379 or visit www.vwbc.org.

LACE: Local Agricultural Community Exchange - FYII

I am currently conducting a 3-year evaluation of process and outcome measures to determine best practices, the impact of services, and the development of a replicable model for the Local Agriculture Community Exchange (LACE) project: A community revitalization project, for the three year grant period. This evaluation report presents the findings of data collected during the first two fiscal years, from October 1, 2007 to September 31, 2009. For more information about this study or to request additional copies of this report, please contact Michele Cranwell Schmidt, Evaluation Coordinator, at mschmidt@uvm.edu, call (802) 656-0256 or visit www.uvm.edu/crs/.

LACE, a non-profit organization located in Barre, Vermont, is a community revitalization initiative with a multi-faceted approach centralized around the renovation of a previously vacant storefront located in an economically distressed downtown community. This innovative and comprehensive project is carried out by the public-private partnership of LACE, which includes the artisan Gallery and commercially licensed shared-use community kitchen facility, Central Vermont Community Action Council (CVCAC), a nonprofit community action agency that provides poverty alleviation programs and services in central Vermont, and a private business enterprise, the Farm Fresh Market and Café.

The evaluation of the LACE project focuses on both process and outcome strategies. The overall evaluation focuses on the effectiveness and efficiency of the program's development and interventions, such as improvements to the LACE space and the presence of CVCAC staff on- site at the LACE location to provide services for entrepreneurs. The evaluation also examines strategies to recruit and retain vendors, quality of technical assistance provided, and client outcomes such as increased sales, earned income, and job creation. These outcomes are anticipated to result from connecting local producers and entrepreneurs to a viable market.

The outcome evaluation provides an assessment of project results as measured by collected data that define the net effects of the interventions applied in the project. The outcome evaluation will produce and interpret findings related to whether the interventions produced desirable changes and their potential for being replicated, answering the question of whether or not the program worked.

The process evaluation component is an ongoing examination of the implementation of the LACE investment and project, including collaboration among project partners. The results of the process component are intended to be a management tool to facilitate continuous project improvement. In documenting project development, the process evaluation also serves to help staff identify challenges or barriers, strategies to resolve them and provide recommendations for future implementation. The process and outcome evaluations will utilize both qualitative and quantitative methods, such as telephone and intercept surveys, focus groups, in-depth interviews, and review of database information.

Income to Assets Project: Tax Preparation and Assets Formation in Vermont

The Income to Assets grant serves to increase the capacity of Volunteer Income Tax Assistance (VITA) sites and related services, which is a statewide program of the Vermont Community Action Agencies (CAA). This grant is managed by Central Vermont Community Action Council (CVCAC) with funding from the Office of Community Services, Department of Health and Human Services. Income to Assets serves the multifold purpose of promoting and expanding the use of the Earned Income Tax Credit (EITC), financial literacy programming, asset development and free tax preparation assistance for low-income Vermonters that is carried out by the CAA network in Vermont. Through this project, CVCAC worked with its sister CAAs and other partners to conduct the following three activities:

1. Replication and establishment of additional VITA sites, combined with drop-off filing services, to other regions of the state that are underserved by this program by collaborating with sister CAAs, the Internal Revenue Service, and the Vermont Department of Taxes.
   
2. Exploration of strategies to encourage families to deposit a portion of their refunds and/or credits in an asset building account, such as their Individual Development Account (IDA).
   
3. Evaluation of the Income to Assets grant to determine the impact of VITA services on clients’ use of their refunds and credits; how Vermonters overall prepare their taxes and use their refunds and credits; and best practices for improving VITA services and increasing low-income Vermonters' utilization of these services as well as savings strategies through programs like the IDA.
   

Data collected by CVCAC during the 2008/2009 tax season demonstrates the impact of VITA services in the central Vermont area. CVCAC assisted 725 households in recovering a total of $1,124,363 which included $405,364 in Earned Income Credits and $191,069 in other credits. They also saved these families an additional $126,825 in tax preparation fees.

The Center for Rural Studies (CRS) at the University of Vermont is the third party evaluator for the Income to Assets grant. This project funding period is from October 2007 through 2010 and consistent data has been collected by CRS in the first and second fiscal years of this grant. This evaluation report informs the goals of the grant through data collected during the 2006/07 (from a previous Income to Assets grant), 2007/08, and 2008/09 tax seasons: 1) Vermonter Poll 2009 statewide data collected on tax preparation practices and asset formation, 2) a survey of VITA clients on their tax practices and use of refunds from 2007-2009, and 3) a focus group with staff to discuss strengths and challenges of the 2008 tax year.

For more information about this study or to request additional copies of this report, please contact Michele Cranwell Schmidt, Evaluation Coordinator, at mschmidt@uvm.edu, call (802) 656-0256 or visit www.uvm.edu/crs/.

Vermont Women's Business Center: Client Impact Study

The mission of the Vermont Women's Business Center (VWBC) is to provide women with the training, assistance and support necessary to start and expand successful businesses, thus promoting economic independence and healthy communities. The VWBC is a statewide program of the Central Vermont Community Action Council (CVCAC) and funded in part through a cooperative agreement with the U.S. Small Business Administration. The VWBC offers programming tailored to the needs and experiences of aspiring and established women entrepreneurs from a central office located in Barre, Vermont and via subcontracts with Vermont's four other community action agencies. Some men are also served.

The VWBC assists women who are starting or growing their businesses by providing resources, training, and networking opportunities for women statewide to achieve business success, including:

• One-to-one business assistance with a business counselor (see key staff)
  
• Classes and workshops that are either a series or a one-time class
  
• Networking events to help related businesses help each other
  
• Business lending library to provide books and other resources
  

Current and past VWBC clients who were served in some capacity from 2002 to the present were called to conduct a 15 to 20 minute survey during the month of June 2009. Clients were asked questions about whether or not they started and/or remained in business and the impact of VWBC services and business counseling on themselves and their business. Client outcomes examined include:

• Business start-up rate and survival rate
  
• Expansions/Enhancements and retention rate
  
• Change in household income
  
• Change in public assistance receipt
  
• Change in business profits or gross sales
  
• Total gross sales of businesses helped
  
• Capital accessed
  
• Jobs created
  
• Client satisfaction and program feedback
  

The Center for Rural Studies (CRS) at the University of Vermont was contracted to conduct this study. For more information about this study or to request additional copies of this report, please contact Michele Cranwell Schmidt, Evaluation Coordinator, at mschmidt@uvm.edu, call (802) 656-0256 or visit www.uvm.edu/crs/.

Self-Employment Tax Initiative: Tax Preparation and Assets Formation Practices of Self-Employed Vermonters.

This evaluation report examines the tax preparation practices and use of refunds and credits through a statewide survey and a survey of self-employed clients served by the VITA program offered by the five Vermont Community Action Agencies. This information is important to collect and analyze because tax refund dollars and credits, such as the EITC, provide an injection of cash flow to the average American family and are effective anti-poverty measures for low income families and individuals.