Virginia CDFI Coalition Announces 501C3 Filing for 25 Member Collective
VIRGINIA CDFI COALITION ANNOUNCES 501C3 FILING FOR 25 MEMBER COLLECTIVE
The 501c3 filing will permanently establish the Coalition as a representative for more than 25 CDFI institutions
Media Contact:
Leah Fremouw
Virginia CDFI Coalition
info@vacdficoalition.org
September 8, 2022 (Richmond, VA): The Virginia CDFI Coalition, a collective of community development financial institutions (CDFIs) across Virginia, today announced it has filed to be a 501c3 organization. The volunteer-run 501c3 will be represented by a board of majority women and persons of color and advocates for increased economic opportunity across Virginia. This milestone is a significant step in permanently establishing the coalition as a collective voice for more than 25 CDFIs statewide. Since 1996, Virginia-based CDFIs have awarded more than $15.6 billion to community projects across the Commonwealth.
“We are excited for this commitment to uplifting the needs and accomplishments of our CDFI partners,” says Leah Fremouw, Board President of Virginia CDFI Coalition and CEO of Bridging Virginia. “This is an opportunity to scale our contributions to economic growth across Virginia, particularly in communities with significant unmet financial needs.”
The Coalition’s 501c3 filing comes in the wake of the formation of the Senate Community Development Finance Caucus (CDFC), a bipartisan caucus dedicated to supporting the mission of CDFIs. The caucus intends to help CDFIs scale their ability to provide high impact, responsible financial products, and services in communities where mainstream finance doesn't traditionally invest. There are more than 1,100 CDFIs nationwide with more than $222 billion under management, yet Virginia is one of only a handful of states with an established state CDFI fund.
“CDFIs and MDIs are invaluable in promoting entrepreneurship and economic mobility in some of our most vulnerable and traditionally underserved communities. That’s why I worked to secure billions of dollars in funding for CDFIs, and was so proud to establish the Senate Community Development Finance Caucus. I applaud the Virginia CDFI Coalition for its ongoing commitment to uniting and empowering CDFIs all across Virginia. I look forward to seeing the continued growth and progress that will be made possible through the Coalition’s new 501c3 status,” said Senator Mark R. Warner.
Small businesses receive $93.4M from Virginia CDFIs annually to stimulate economic growth in historically underfinanced communities. This includes $9.8M to industrial and agricultural businesses, $30M to nonprofits and community facilities, and 1.3M sq. ft towards real estate construction or rehabilitation
CDFI capital flows to local organizations like Umma’s, a mother-daughter owned Korean restaurant based in downtown Charlottesville. In 2022, Ummas received a $60,000 loan for startup costs from Coalition member Foodshed Capital. Since then, Umma’s has expanded to 18 staff members, and uses organically grown and foraged ingredients from their family-run farm in Esmont, VA. Jen had been selling her vegetables, eggs, kimchi and Korean inspired cuisine at the Saturday farmers market in Charlottesville for many years, and the restaurant now brings this wholesome goodness to more people throughout the week.
“I have worked with many CDFIs over the years, and I have seen first hand their commitment to serving rural Virginia. Community lenders are important partners in growing the small, locally owned businesses that make our communities special, and I am excited to see their impact grow through the Virginia CDFI Coalition,” said John Kilgore, Executive Director at Scott Co. Economic Development.
Sean Adkins, Director of Economic Development for Patrick County, Virginia shared “The Virginia CDFI Coalition will serve as an important resource for coordination and education to CDFIs across the state. This support will allow the CDFIs to expand their already significant impact in communities like Patrick County.
To learn more about The Virginia CDFI Coalition, visit here: https://www.vacdficoalition.org/.
About Virginia CDFI Coalition
In 2021, the Virginia General Assembly passed a $10 million budget amendment that effectively created and funded the Virginia CDFI Fund, which is to be administered by the Virginia Department of Housing and Community Development (DHCD). The purpose of this fund is to support Virginia-based CDFIs and build their capacity to support communities and businesses across the state. In response to this opportunity, a majority of Virginia-based CDFIs agreed to organize, form a coalition, and establish a collective voice for the community development and investment community.
The Virginia CDFI Coalition seeks to offer a collective voice to address issues concerning the unmet financial needs of Virginia communities by advocating for greater awareness of CDFI activities and operations and by supporting the goals of its member organizations with peer support and education. These goals will be implemented by the Coalition members individually and collectively in statewide and local venues with an emphasis on social and racial equity.
