A proposed new, investor-owned commercial bank in the US state of Vermont has moved a step closer to opening by raising a total of US$33 million in start-up capital.

Focused on serving local businesses, Bank of Burlington expects to offer letters of credit (L/Cs) within its suite of commercial offerings.

Interest in the bank has exceeded expectations. It had set out to raise US$24-30 million. Over 96 per cent of the investors are either individuals who live locally in Vermont or are part of a Vermont-based business.

Local flexibility

A founding principle of the bank is that a local lender is likely to be more flexible in approving business loans while it also aims to fill the banking gaps opened up by financial institutions in Vermont being sold or merging.

Bank of Burlington will offer L/Cs, cash management and treasury services, online and mobile banking, a full suite of commercial loans as well as business and consumer deposit accounts.

Opening soon

If it is approved by the authorities, the bank would be the only Vermont-based bank that offers only business lending.

Permission to organise Bank of Burlington was granted by state authorities in March 2022 and it expects to open for business later this year.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.