Nonprofit organization to receive $4 million for small-business loans
A nonprofit community development financial institution is working with a major Wall Street investment bank on a program to promote more lending to Virginia small businesses.
Virginia Community Capital Inc. (VCC), which has offices in Christiansburg and Richmond, is collaborating on a $500 million Goldman Sachs initiative, the 10,000 Small Businesses project, which is intended to boost small-business growth and job creation.
As part of the initiative, New York investment bank Goldman Sachs and the Goldman Sachs Foundation have pledged $4.4 million to the work of the VCC.
The money includes $4 million for the VCC loan fund, which will be used for loans to growing small businesses in low- to moderate-income areas of the commonwealth.
The remaining $400,000 will support expansion of VCC’s small business lending outreach and assistance program and provide a loan reserve fund.
VCC’s mission is to offer financimg designed to support housing and community development ventures, increase jobs, and encourage sustainable communities. The organization has a for-profit bank, Community Capital Bank of Virginia (CCB), which offers loans in underserved markets.
The Goldman Sachs initiative “arrives at an opportune time to enhance a heightened focus by VCC on small business development across Virginia,” Jane Henderson, VCC’s CEO and president, said in statement. “We have been hard at work strengthening entrepreneurs and enterprises with technical assistance for several years. We’ve recognized that small business owners could increase their impact with improved access to capital and this award will help us do just that.”
VCC has recently added a small business lending manager and community-based outreach specialist, who will identify prospects for real estate and business loans.