The first town meeting in Lomond was held on April 3, 1837, where 37 citizens cast their votes to elect officers, justices of the peace, constables and other necessary administrators. One of their first official acts was to order a bounty of two dollars for each wolf that was killed in the township.

A variety of businesses were built in the early years, including two blacksmith shops, a broom and ink factory, soap factory, millinery, tailor, wagon shop, and a tin shop that made pails and pans. In 1854, the Dryden Exchange hotel was built on the northeast corner of Main and Mill Streets. Later, in 1874, the Twin Elms House was built on the northwest corner. The first flour mill was built on the southwest corner of Mill and North Streets.

One of the most notable businesses was an apple dryer and cider mill located south of the Parker Block on Mill Street. Apples, purchased by the bushel from local farmers, were peeled, cored, dried and packed into boxes to be shipped. The dried cores and peels were sold as hog feed. In 1881, after only five years in business, the dryer burned down. Undaunted, the owner, Joseph Darwood, rebuilt the very same year.

In 1883, the P O & N railroad, which ran from Pontiac to Caseville, came through the village. This opened up more markets to the farmers in the area as well as offered transportation to the citizens.