Inside Stories

Stories » Business » 50 Years of Impact: The LDFC’s Downtown Venture Fund

50 Years of Impact: The LDFC’s Downtown Venture Fund

by Allison Lamey

For 50 years the Lowell Development & Financial Corporation (LDFC) has been involved in shaping development that enhances the city’s economic vitality. One of its most impactful initiatives, the Downtown Venture Fund (DVF), has played a crucial role in fostering business growth in the heart of Lowell’s central business district.

Launched in 2000 as a joint venture between the LDFC and the City of Lowell, the Downtown Venture Fund was designed to attract businesses to fill vacant storefronts with dynamic and engaging uses. Recognizing the challenges faced by startups, particularly in the retail and restaurant sectors, the fund provides much-needed capital to entrepreneurs who bring value-added improvements to downtown Lowell.

The DVF program was initially capitalized with funds from a diverse group of stakeholders, including the City of Lowell (through federal Block Grant dollars), eight local lending institutions, and the Life Initiative Fund. The City’s commitment was critical in securing buy-in from financial partners, ensuring the revolving loan fund had the resources to support emerging businesses.

“Startups, especially restaurants and retailers, face significant financial hurdles,” says Dan Field of Eastern Bank and Chair of the DVF Subcommittee. “The LDFC has created a mechanism that allows lending institutions to share that risk. We’re proud to be part of the DVF loan pool and to support businesses in downtown Lowell.”

The Downtown Venture Fund operates through a two-step application process. First, applicants undergo a pre-approval process with the City’s Economic Development Office to ensure their business concept aligns with Lowell’s downtown revitalization goals and zoning requirements. Once pre-approved, they work with LDFC staff to prepare a financial application. Depending on the applicant’s needs, they may also receive technical assistance through a local partner organization to refine their business plans.

Ribbon cutting ceremony at lala Books in Downtown Lowell, a recipient of the LDFC Downtown Venture Fund

Over the years, the Downtown Venture Fund has helped more than 50 small businesses, spanning industries from restaurants and galleries to retail shops and professional services. Many of those businesses have celebrated 10- and 20-plus year milestones of their own – a testament to the small business resources and support available in the city.

Laura Lamarre Anderson, owner of lala books on Market St. had this to say about her experience: “LDFC not only provided start-up capital to open lala books in downtown Lowell, they also connected us to other resources and professionals to help launch us on solid footing. The support and encouragement meant the world to us.” This structured yet flexible approach has enabled a diverse array of businesses to establish themselves in downtown Lowell, contributing to a vibrant and dynamic commercial landscape.

An important impact of the Downtown Venture Fund is its role in fostering economic inclusion. Nationally, 31% of small business owners are women, and 20% are persons of color. In contrast, since 2014, 58% of the loans provided through the LDFC have gone to women-owned businesses, and 37% to BIPOC-owned businesses. Many of these entrepreneurs come from low- or moderate-income backgrounds, highlighting the program’s effectiveness in breaking down financial barriers and promoting equitable economic growth.

As the LDFC marks its 50th anniversary, the Downtown Venture Fund stands as a testament to the organization’s commitment to strategic investment and community-driven development. By fostering entrepreneurship, creating job opportunities, and revitalizing downtown spaces, the fund continues to shape Lowell as a model for sustainable urban growth.

With ongoing collaboration between public and private partners, the Downtown Venture Fund will remain a powerful catalyst for business innovation and economic inclusivity in the years to come.