VA CDFI Fund Builds Momentum with Initial Budget Allocation

The Virginia General Assembly Adds to Virginia CDFI Fund for Increasing Community and Economic Development Opportunities Across the Commonwealth

Richmond, VA - In early September, the Virginia Community Development Financial Institutions Fund (VA CDFI Fund) was allocated new dollars from the General Fund for economic and community growth as part of the budget approved by the Virginia General Assembly. The VA CDFI Fund demonstrates a successful private/partnership that has already led to over $5 million deployed towards 360 loans, 210 businesses created or expanded, and over 920 jobs created or retained across the state. Additional investment in the fund will build on its initial success and demonstrate the state’s commitment to reinvestment in our local communities, unlocking tens of millions of additional private and public capital to invest in economic opportunities across the Commonwealth. 

The VA CDFI Fund provides capital to community development financial institutions (CDFI) and other financial entities. These capital resources enhance the lending organizations’ ability to provide flexible and affordable financing to small businesses, housing development and rehabilitation projects, and community revitalization real estate projects in the Commonwealth. 

Virginia became one of the first states to create a state-budgeted CDFI Fund in 2021 with the passing of a $10 million budget amendment, positioning the Commonwealth as a model for other state legislatures. With bi-partisan support, the VA CDFI Fund is now uniquely positioned as a permanent resource for supporting lasting economic growth. 

The VA CDFI Fund was originally championed by Sen. Jennifer McClellan (D-Richmond), Sen. Dave Marsden (D-Fairfax), and Del. Danny Marshall (R-Danville) in the House this year. 

“I am pleased to see the progress we have already made with The VA CDFI Fund to create economic opportunity across Virginia. While in the Virginia General Assembly, I was proud to carry legislation creating the VA CDFI Fund to expand resources for our community development partners, small businesses, and entrepreneurs. Now in Congress, I am continuing those efforts and will fight to ensure our Commonwealth’s small businesses have the support they need to succeed” said Congresswoman Jennifer McClellan (VA-04).

“The Commonwealth has established itself as a national leader through the creation and capitalization of the CDFI Fund. Public-private partnerships like these benefit the small businesses that power our economy. CDFIs help to create more financing opportunities for small businesses and community revitalization projects, offering economic development opportunities for our rural areas and across the state,” stated Delegate Danny Marshall (R-Danville). 

Senator Mark R. Warner, co-founder of the bipartisan Senate Community Development Finance Caucus (CDFC) and author of the COVID-era law that provided $12 billion to CDFIs and MDIs nationwide, shared “Earlier this year, with bipartisan support, the Commonwealth codified the Virginia Community Development Financial Institutions Fund, making permanent an initiative than has done critical work to bridge gaps in financially underserved communities. We have seen the impact that this fund has had to drive our economy, support small businesses, and create jobs, and I look forward to continuing to find ways to support these efforts at the national level.” 

“The Virginia CDFI Coalition looks forward to continued collaboration with public representatives and our CDFI members. Each business financed, each job created, and each home built can help to transform a life, a family, and a community. We know this is invigorating our localities in all the right ways,” shared Leah Fremouw who acts as the Virginia CDFI Coalition Board President and the President & CEO of Bridging Virginia.  

Virginia First Cities Coalition, a member and partner of the Virginia CDFI Coalition, consists of seventeen of the Commonwealth of Virginia's older, core cities and is a strong supporter of the VA VDFI Fund. “We see on a daily basis the critical and great work that CDFIs have seeded in our cities --- from housing redevelopment and expanding housing access, to post-pandemic small business creation and growth," shared Kelly Harris-Braxton, Virginia First Cities’ Executive Director.

“The VBA [Virginia Bankers Association] and our member banks are encouraged by the continued progress in support of the Virginia CDFI Fund. This is another important step in deploying much-needed funding to CDFIs throughout Virginia, and we hope to see even more growth in the Fund to expand access to affordable housing and small business capital.” said Matthew Bruning, EVP of Government & Member Relations at VBA. 

###

About Virginia CDFI Coalition: 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. We do this through advocacy and education, industry best practices & partnerships, storytelling and market education, and with financial products, services, and communities impacted. 

To learn more about The Virginia CDFI Coalition, visit here: https://www.vacdficoalition.org/.