Our neighbors are so important, and together we can accomplish a lot.
BCDI "Neighbors investing in neighbors" loan/investment program
BCDI’s main undertaking has been the establishment of a lending mechanism to meet local needs with local capital. The idea emerged when discussing the real needs of some of the young people in town, as well as the need to bring back a “credit union of the old school” (small, focused on the serving needs of the local community, with no ambition to expand.) The amount of a BCDI loan may be a minimum of $500 and maximum of $25,000. Loans are very low interest (3%) and short term; repayment is expected between 12 and 36 months after disbursement. The repayment schedule is flexible and is tailored to meet the specific needs and capacities of the beneficiary. The BCDI loan program is designed to meet the needs of businesses that are unable to obtain a low-cost loan through traditional lending institutions for reasons such as incomplete credit history. Since 2012, BCDI has granted over $168,000 in loans. Going forward, BCDI loans and other activities will continue to be aimed at supporting farmers and other local businesses.
Some examples of loans that have been disbursed:
$7000 to purchase a tractor – fully repaid
$5000 to purchase a high-tunnel greenhouse – fully repaid
$7000 to purchase fencing and pasture enhancements for sheep pasture – fully repaid
$3000 for materials and equipment needed to launch two online businesses – fully repaid
$1800 to repair a truck and obtain saw blades to get a wood business off the ground – fully repaid
$7000 to purchase two greenhouses and establish a farming operation – fully repaid
$12000 to put a new roof on a local business – fully repaid
$19000 to install additional fencing and a drilled well with solar pump to support farming operations - fully repaid
While the Loan Program is coordinated by BCDI, the funds come directly from individual BCDI members who serve as “investors.” Community members who are interested in helping to invest in the growth and development of local businesses can provide financial support toward the loan provided to the business. In other words, residents who choose to support the local businesses seeking loan financing will lend their personal money to the business. BCDI’s role is to coordinate and administer the process between the business seeking the loan and the numerous individual investors who help to fund a loan in full. When the loans are paid back, our investors receive their original contribution amount back with interest. Our model truly is “neighbors investing in neighbors”.
“Receiving a loan from BCDI has been transformative for my business. The funds allowed me to scale up this season in a way I would not have otherwise been able, and have permitted me to take on a significant amount of additional work without a whole lot of stress. The loan process was simple and smooth and serves as a great example of how supportive the Bowdoinham community is.” - Loan Recipient
“BCDI membership provides a refreshing, new way for people outside of the usual circles to get involved: by directly funding local, entrepreneurial efforts through purchasing loan shares. Now there is a way for the person who can't weed a garden plot or teach a foraging class (in my case, because of other demands on my time, and lack of relevant skills, respectively) to help. It's no longer a closed environment. Those willing and able to put some money at risk can help support those willing and able to build new, sustainable local businesses – a satisfying symmetry of resources, skills and effort.” - Neighbors Investing In Neighbors Investor
You must be a member of BCDI to apply for a loan, as well as to participate in investing in one.
Not a member? Click here to become one.
interested in a bcdi loan?
If you would like to learn more about applying for a BCDI loan, please fill out the form below and we will get back to you shortly to discuss the process. In the meantime or to begin your application narrative, click here for information on the application guidelines and requirements.