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.