The Importance of a Northfield Revolving Loan Fund
February 1, 2021
Northfield is looking into the possibility of creating a revolving loan program to assist local businesses
A community revolving loan program is designed to offer local businesses another form of financing. Loans are structured similarly to conventional commercial loans, but can offer more flexibility in terms and application. For instance, commercial lenders typically do not provide cash for working capital or other costs, leaving businesses with a gap in their financing plan. Similar to the programs successfully established in nearby Vermont communities, Northfield's revolving loan fund would be managed by a committee, and loan applicants would be vetted for creditworthiness. A community revolving loan program is an effective way for the Town of Northfield to assist local businesses with growth, development, and recovery from the pandemic.