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Aldermen renew revolving loan agreement with Heritage Family Credit Union for buy-up loans
Summary
The Board approved a new five-year BIAP (Business Incentive Assistance Program) revolving loan fund agreement with Heritage Family Credit Union covering 07/01/2025–06/30/2030 and authorized the mayor to sign; aldermen discussed interest-rate review language and staff said HFCU had already approved the draft.
Rutland City aldermen on July 7 voted to let the mayor sign a five-year renewal of the city’s Business Incentive Assistance Program (BIAP) revolving loan agreement with Heritage Family Credit Union (HFCU) covering July 1, 2025 through June 30, 2030.
The contract renews the city’s secured-loan relationship with HFCU for buy-up and small business assistance loans. City staff said the only edits in the latest draft were updated effective dates and the interest-rate schedule provided by HFCU.
Board discussion briefly addressed whether the agreement’s interest-rate language should be flexible rather than strictly annual, to allow the program and the credit union to adjust rates between scheduled reviews. City staff said HFCU had reviewed the draft and signed off on it; staff offered to consult HFCU about any later language changes and return to the board if needed.
Program context: According to staff, the BIAP-secured product supports loans up to $50,000 with the city contributing a portion of the fund and HFCU providing the secured loan product. Staff reported two loans currently outstanding that originated through referrals to HFCU; the credit union sometimes routes applicants to alternate lending programs that may be more appropriate.
Aldermen also briefly discussed the program’s activity: multiple referrals have been made, two loans are outstanding, and HFCU can use additional internal funds for some applicants.
Ending: The motion to authorize the mayor to sign the agreement passed. Staff said they would follow up with HFCU if aldermen want different timing language for rate reviews and could bring an amendment back for board approval if both parties agree.
