Helping Virginia Communities Thrive
Vision: To be the first choice for innovative capital
and collaborative leadership promoting vibrant local
communities and enhanced quality of life.
2014 Over $46 million in loan deployments Average $50-55 million per year
in loan deployments
$259
MillionLoans Originated
$407
Leveraged Funds Million Total Project Impact$666
Million$67
Total Deposits Million4,987
Affordable Housing Units Financed3,367
Jobs Created or Retained6,600,731
Square Feet Real EstateDevelopment Over
10,000
Hours Advisory Services Provided $15 2005 $17 2006 $29 2007 $34 2008 $45 2009 $71 2010 $86 2011 2012$86 $102 2013 $121 2014 TOTAL ASSETS (in millions)VCC’s assets have steadily grown since the original seed
Letter from the President & Chairman
V
CC experienced a year filled with growth in2014 and is fortunate to continue flourishing. The CDFI banking industry is also growing, as demand for innovative capital and advisory services in underserved communities steadily increases. In 2014, the CDFI Fund certified 47 new CDFI banks, the most ever in a given year. The industry’s sustainability is reflected by a 33% increase in assets last year to $34.3 billion as of December 2014 and total net assets of $3.6 billion, an increase of 41% since December 2013.*
Growth fosters the propensity to help more people and more communities. Nationally, small business own-ers’ report lack of access to capital is their most difficult challenge, limiting their growth and job creation. VCC’s small business support grew from $6.5 million in 2013 to $15.5 million in 2014. With this additional capital, 1,409 jobs were created and retained in Virginia.
Virginia residents need access to affordable, nutritious foods. Virginians’ low food access rate is 17.8%, with over 1.4 million residents in food deserts. This is alarming since it is substantially higher than the national rate of 7.3%. VCC’s $10 million Virginia Fresh Food Loan Fund facilitates the growth of healthy food enterprises in Virginia communities. Due to this industry’s unmet capital needs, we expect to help more residents gain food access.
VCC remains focused on mission investing, a concept growing nationally. Global impact investing grew $12.7 billion last year, up 20% from the previous year.* Mission investing provides investors a double bottom return (economic and social). Our Local Impact Opportunity Notes gained traction, with $1 million invested. We expect more institutions, foundations, and individuals who care about “place” will engage in local impact investing in 2015.
Jane N. Henderson
President & CEO Dixon B. HannaChairman of the Board
VCC aspires to move from a double bottom return toward a triple bottom return by exploring multi-family energy efficiency lending. Future VCC markets include growing social enterprises and small business mezza-nine financing. A global movement for a new financial system is underway, providing economic, social, and environmental benefits. VCC is leading the way in Virginia.
VCC will celebrate its tenth year in 2016. We are poised to help more people and more communities in the next decade. It would not be possible without you, our partners, and we appreciate all you do.
Let’s do more, together.
“ We are poised to help more people and more communities in the next decade. It would not be possible without you, our partners…”
*Sources:
CDBA’s “Peer Analysis”, 2013 and 2014
Global Impact Investing Network’s March 2015 “ImpactBase Snapshot—An Analysis of 300+ Impact Investing Funds”
“ [VCC] had the right combination of expertise and
innovative financing essential to helping the Sappony
Tribe grow economically and create jobs.”
— Sherry Munford, Secretary, High Plains Construction, Inc.
Lofts at Canal Walk: High Plains Construction’s work
T
he Sappony, an American Indian tribe, is one of only five recognized tribes in Virginia and is located in Virginia and North Carolina. The Sappony tribal center based in Virgilina, Virginia, is dedicated to helping grow the Sappony economy. They decided to purchase an existing business that was a sole-proprietorship founded 25 years ago in Chesterfield, Virginia, which specialized in finish carpentry—installing windows, doors, trim, stairs, and cabinets. The new company is High PlainsConstruction, Inc.
Dante Desiderio, member of the Sappony, knew of VCC’s mission to help meet the needs of non-traditional borrowers. VCC provided the innovative financing— acquisition funding and working capital—and the advice they needed to be successful in this endeavor.
The existing construction business had a single owner and five sub-contractors. Since the Sappony’s involvement, they have expanded to five employees and 21 subcontractors. VCC is delighted to help the Sappony grow and create jobs, especially since this tribe represents a historically underserved population in Virginia.
Jonathan Mills, member of the Sappony and Director of Operations for High Plains Construction, did contract work for the existing company for ten years. Sherry Munford, member of the Sappony and High Plains Construction employee, is a new addition to the team. With VCC’s financing help, they expect to expand capacity in other Virginia markets and North Carolina.
Sherry Munford stated, “VCC was awesome to work with. They had the right combination of exper-tise and innovative financing essential to helping the Sappony Tribe grow economically and create jobs.” Ms. Munford highly recommends VCC to other small businesses needing creative and innovative capital.
T
he Hampton-Newport News Community Services Board (HNNCSB) is one of the largest providers of community-based behavioral health services for people with serious behavioral and developmental disabilities and substance use disorders in Virginia. HNNCSB, through one of its affiliated non-profits, sought sufficient funding to rehabilitate and refinance an aging and run-down Newport News, Virginia apart-ment complex for people with disabilities. The income level for most of the residents is 12–14% of Area Median Income. Many living there had been homeless in addition to living with physical and/or behavioral disabilities.VCC provided HNNCSB innovative financing and advice, including a revolving construction loan. The complex also secured permanent financing through VHDA Low-Income Housing Tax Credits with Virginia Community Development Corporation syndication, as well as funding from the Department of Housing and Community Development, Virginia Housing Development Authority SPARC, and Newport News Redevelopment and Housing Authority.
Through VCC’s help, a comprehensive renovation is underway to make the apart-ments more handicap-accessible for residents, energy efficient, attractive, and provide
on-site amenities. There will be three new apartments and a new community building will offer a computer lab, covered outdoor patio area, kitchen, meeting area, property management offices, and laundry facilities. This renovation will help create an overall sense of community for residents by giving the entire complex a more attrac-tive appearance and by providing a place where the residents can visit with one another and have recreational and informative meetings.
Joy Cipriano, Director of Property and Resource Development for the HNNCSB, stated that “VCC’s mission aligns well with our mission, and my overall experience with VCC has been wonderful. This important project will enhance the lives of many low-income Virginians living with disabilities and may even serve as a model for similar refinancing and rehab projects.”
Creating a Sense of Community
“ Before” photo of New Phoenix Village
“ VCC’s mission aligns well with our mission…and this
important project will enhance the lives of many
low-income Virginians living with disabilities.”
— Joy Cipriano, Director, Hampton-Newport News Community Services Board
“ [VCC offered] valuable insights which helped
us achieve our goals to provide expanded
access to health care.”
— Kay Crane, Executive Director, PATHS
P
iedmont Access to Health Services (PATHS) is a nonprofit community health center based in Danville with locations in Chatham, Martinsville, and Boydton which offers primary care services including pediatrics. PATHS’ vision is to be a catalyst for change, making a healthy life possible for everyone. The center serves all patients regardless of their ability to pay and 40% of their patients are uninsured.PATHS decided to expand health care for residents in Danville. With a grant of over $2 million for this expansion, the center fell short of the budget needed and sought VCC’s help with innovative financing and collaborative leadership, including a gap construction loan, mortgage refinancing, and working capital line.
The rise and fall of Dan River Inc., a textile company in Danville, hurt the area’s economy, leaving many without jobs. With VCC’s help, the expansion will be adding six employees. PATHS will establish pediatric behavioral health services and grow its pediatrics, pharmacy, and OB/GYN. With a child-friendly look, the new space has sick and well waiting rooms for families. The new services will help diagnose children with Attention Deficit Hyperactivity Disorder and autism early.
Kay Crane, PATHS’ Executive Director, said, “I really enjoyed working with VCC—they made it so easy for us, the process was effortless. I especially liked that VCC understood our mission and that we are here to serve community residents who have traditionally been underserved. This enabled them to offer valuable insights which helped us achieve our goals to provide expanded access to health care.”
When asked how she would rate her experience with VCC, Kay Crane stated, “On a scale of 1 to 10, I would rate them above 10 and would absolutely recommend VCC to others seeking innovative capital.”
Expanding Access to Health Care
Dr. Drew Baker holding pediatrics patient
I
mpact investing is a concept that is taking hold nationally, linking investors with a double bottom return (financial and social). In 2013, VCC rolled out a new investment product, Local Impact Opportunity Notes (LION), offering accredited socially conscious investors a small financial return and a local social return by funding projects impacting Virginia communities. Investors have the opportunity to do more than traditional philanthropy—to contribute to enhancing Virginians’ lives by allocating their dollars to regions they care about most. Projects may include creating affordable housing, renovating a blighted building for mixed use or helping a small business create jobs.Why make a social investment in VCC?
It’s simple—to create healthy, vibrant Virginia communities. When asked why he invests in VCC, Jeff Ukrop said, “VCC provides financing that probably wasn’t available to my grandparents (or other small business owners) when they started Ukrop’s Super Markets. So, my investment is supporting small business financing that helps fuel community revitalization.”
Susan Brock Wilkes, Ph.D., Owner of Wilkes Consulting, added, “I had heard of VCC’s reputation for some time and like their work in community development and investing in communities. I support nonprofits through traditional means—philanthropy and volunteering— and saw this as a very unique opportunity to invest vs. just give. The
social benefit is very important to me, so my investment is really congruent with my values. I am impressed that a Richmond company is on the forefront of something so innovative and progressive.”
Another impact investor, Marc McGahee, mentioned, “The LION note concept is very innovative and offers a significant opportunity to make a huge difference in Virginians’ lives by creating jobs, providing affordable housing, health care, and more. It is exciting to be a part of this new type of philanthropy.”
“ …my investment is really congruent with my values.
I am impressed that a Richmond company is on the
forefront of something so innovative…”
—Susan Brock Wilkes, Ph.D.
Planting Seeds to Enhance Quality of Life Across Virginia
Central Eastern Richmond Southwest Northern Hampton Roads Southside ValleyVCC Loan Originations
as of December 31, 2014= Affordable Housing = Economic Development
VCC & Community Capital Bank of Virginia Offices VCC Office
Virginia Regions*
Condensed Consolidated
Balance Sheets
December 31
2014 2013
ASSETS
Cash & cash equivalents $ 5,895,313 $ 6,300,436
Investments 17,499,705 17,908,938
Loans, net of allowance for loan losses of
$1,020,083 in 2014 and $730,874 in 2013 93,738,786 75,129,808
Other assets 3,367,845 2,519,273
Total Assets $120,501,649 $101,858,455
LIABILITIES AND NET ASSETS
Liabilities Deposits $ 66,592,211 $ 57,147,198 Borrowings 27,361,198 20,184,998 Other liabilities 1,904,848 1,000,570 Total Liabilities 95,858,257 78,332,766 Net Assets 24,643,392 23,525,689
Total Liabilities and Net Assets $120,501,649 $101,858,455
2007 $10 2008 $15 2009 $22 2010 $43 2011 $70 2012 $63 2013 $75 2014 $94 2010 $39 2011 $44 2012 $41 2013 $57 2014 $67 Total Loans
Condensed Consolidated
Statements of Operations
Years Ended December 31
2014 2013 INCOME Interest income $4,905,316 $4,350,287 Grant income 2,533,437 1,585,274 Other income 365,330 808,348 Total Income 7,804,083 6,743,909 EXPENSE Program services 5,179,101 4,241,193
Management and general services 1,423,379 1,251,555
Other expenses 91,267 52,110
Total Expense 6,693,747 5,544,858
Change in Net Assets $1,110,336 $1,199,051
2007 $29 2008 $34 2009 $45 2010 $71 2011 $86 2012 $86 2013 $102 2014 $121 2007 $19 2008 $19 2009 $19 2010 $19 2011 $20 2012 $22 2013 $24 2014 $25 Total Assets
COMMUNITY ADVOCATE COUNCIL Standing left to right:
Lisa Atkinson
Deputy Director of Community Development, Virginia Department of Housing and Community Development
Shea Hollifield
Retired, State Government
Chris Thompson
Deputy Director of Housing, Virginia Department of Housing and Community Development
Penny McPherson
VP, Senior Community Development Officer, Wells Fargo
Carolyn Spohrer
Deputy Director, Virginia Community Action Partnership
Kathy Wheeler
President & CEO, Community Business Partnership
Shelley Murphy
Director of Program Services, Piedmont Housing Alliance
Overton McGehee
Executive Director, Habitat for Humanity Virginia
Marjette Upshur
Director, Office of Economic Development, City of Lynchburg
Mike Hawkins
Managing Director of Community Outreach, Virginia Housing Development Authority
Kent Ware
Program Director, USDA Rural Development
Todd Christensen
Executive Director, Southwest Virginia Cultural Heritage Foundation
Steve Galyean
Director, Partnership Marketing Development, Virginia Tourism Corporation
Ed Gerardo
Director, Community & Social Investments, Bon Secours Health System, Inc.
Not pictured: David Baldwin
Executive Director/CEO, Bristol Redevelopment and Housing Authority
Shannon Blevins
Director of Economic Development, University of Virginia’s College at Wise Resource Center
Graham Driver
Director of New Markets Tax Credits, Virginia Community Development Corporation
Kevin Kelly
Managing Director, ECDC Enterprise Development Group
Jill McCormick
Executive Director, Cabell Foundation
Nancy O’Brien
Retired Public Servant; Lifetime VCC Advocate
Delegate James Scott
Retired, Virginia House of Delegates
Séson Taylor
Assistant Vice President, Development Advisor, PNC Bank
BOARD Of DIRECTORS Standing left to right: William Shelton
Director, Department of Housing and Community Development
Jane Henderson
President & CEO, VCC
Kenneth Daniels
Professor of Finance, Virginia
Commonwealth University School of Business
Robert Gilliam, Jr.
Retired Bank President & CEO
Charlie Mills, III
CEO, Salera Employee Benefits Solutions
Seated left to right: James Harkness, Jr.
Retired Bank President & CEO
Dixon Hanna
Retired Associate Provost, Virginia Tech
florence Kingston
Director for Department of Development, City of Newport News
Alvin Smuzynski
Retired Executive Director,
Wesley Housing Development Corporation
Michael Schewel
Attorney (Partner), McGuire Woods LLP
Not pictured: Gregory fairchild
E. Thayer Bigelow Associate Professor, University of Virginia, Darden Graduate School of Business
Mary Dwyer Pembroke
Director and Senior Counsel, Government Relations, Discover
STAff & CONSULTANTS Standing left to right:
Ginny Hodges
Program Monitor & Analyst
Dawn DeHart
Senior Loan Officer
Patricia Powers
Accountant
LaTilda Owens
Small Business Consultant
Shaun Rai
Loan Officer
Martha Shifflett
Senior Loan Officer
Chris Dimotsis
Loan Officer
Ann Call
Loan Support Specialist
Jeff Dobson
Website & Data Programmer
Angela Elliott
Executive Assistant
Tammy Johnson
Senior Accountant
Wayne Waldrop
Chief Lending Officer
Lisa Carnahan
Marketing Manager
Thomas Nelson
Operations / Compliance Assistant
Julia Calamita
Credit Analyst
Bob Adams
Advisory Support Consultant
Candace Branch
Credit Underwriter
Terri faw
Senior Loan Closer
Jane Henderson
President & CEO
Ed Chin
Chief Risk Officer
Tim Mattox
Website & Data Manager
Jacob Willis
Loan Officer
Lenore Linkous
Customer Sales & Service Representative
Neal Barber
Community Consultant
Bill Nguyen
Director of IT
Clyde Cornett
Chief Financial Officer
Tom Bridgeman Director of Operations Caroline Nowery Community Investments Randy Gonzalez Portfolio Manager Teri Lovelace
Community Investments & Impact Manager
Terri Wright
Loan Operations Manager
Seated left to right: Tambry Harris
Consultant
Pat Kietzman
Manager of Administration
Kim Burchette
Human Resources Manager
Lorie Williams
Loan Operations Specialist
James Wallace
Fresh Food Advisor
Monique Johnson
Senior Loan Officer
Maron El-Khouri
Customer Sales & Service Representative
Teresa Walker
Savings & Deposits Manager
Lisa Bond Loan Closer Not pictured: Diana Berry Portfolio Analyst Bill Greenleaf Loan Officer Ashley Nelson
Financial Reporting Manager
Adriana Wallace
Partners & Investors
804RVA AERIS
Affordable Housing Trust Fund of Richmond Altria
America Saves
American Bankers Association American Heart Association Annie E Casey Foundation
Appalachian Community Capital (ACC) Appalachian Sustainable Development Ariel Ventures LLC
Arlington Partnership for Affordable Housing B Lab
Ball Office Products BALLE
Balzer and Associates Bank of America Bank of Botetourt Bank of Fincastle BB&T
Better Housing Coalition Blue Ridge Bank
Blue Ridge Health Center Inc. Bluffwalk Center, LP
Bon Secours Health System Inc.
Bristol Redevelopment and Housing Authority Brookhill Farm (BHF Inc.)
C&F Bank Cabell Foundation Calvert Foundation
Capital Area Partnership Uplifting People (CAPUP)
Capital Link Capital One
Capital Region Food Collaborative Cardinal Bank
Carter Bank & Trust
Center for Rural Entrepreneurship Chain Bridge Bank
Citi Communities at Work FundTM
City of Danville Economic Development City of Lynchburg Economic Development City of Richmond Department of Economic &
Community Development Clinton Global Initiative
Commercial Real Estate Women (CREW) Community Bankers Bank
Community Business Partnership
Community Development Bankers Association (CDBA)
Community Foundation of the New River Valley
Community Futures
Community Housing Partners Community Investment Collaborative CowanPerry
Danville Redevelopment and Housing Authority
Danville Regional Foundation DC Central Kitchen
Discover
Domini Social Investments
ECDC Enterprise Development Group EIW Group
Essel Propack E*TRADE Bank Evergreen Cooperatives
Fairfax Economic Development Authority Fauquier Housing Authority
Federal Home Loan Bank of Atlanta Federal Reserve Bank of Richmond Federation of Appalachian Housing
Enterprises (FAHE) FeedMore
First Bank & Trust Company First Capital Bank
First Citizens Bank
Floyd County Economic Development Authority
Friends of Southwest Virginia
Global Impact Investing Network (GIIN) Global Impact Investing Rating System (GIIRS) Goldman Sachs 10,000 Small Businesses Goldman Sachs Foundation
Greater Richmond Chamber of Commerce Greylock Advisory Group
H D Advisors
Habitat for Humanity Virginia Herndon Foundation Hometown Bank
Housing Association of Nonprofit Developers (HAND)
Housing Virginia HSBC Bank Impact Makers
Institute of Public Health Innovation Jessie Ball duPont Fund
Knowledge Advisory Group Larson Development Launch Place LeClair Ryan Lighthouse Labs
Loudoun County Chamber of Commerce Mary Morton Parsons Foundation Mary Reynolds Babcock Foundation McCandlish Holton Attorneys at Law MGMiller Valuations
Mill Creek Creative LLC
Mission Investors Exchange (MIE)
Montgomery County Chamber of Commerce My Southwest Virginia Opportunity National Council on Agricultural Life and
Labor Research (NCALL) National Good Food Network National Housing Trust New Richmond Ventures One Partner Investments LLC Opportunity Finance Network (OFN) Partners for the Common Good (PCG) People Inc.
Peoples Community Bank Piedmont Housing Alliance PKW Enterprises, LLC PNC Bank
Project Glade
Promontory Interfinancial Network, LLC RAIN Source Capital
Richmond City Health District Richmond Regional Planning District
Commission
River Community Bank, NA
Roanoke Regional Chamber of Commerce Safe Harbor Title Company
Sequestering Carbon, Accelerating Local Economies (SCALE)
Southeast Rural Community Assistance Project (SERCAP)
Southside Community Development and Housing Corporation
Southwest Virginia Cultural Heritage Foundation
Spotts Fain
Accreditations
Memberships and Affiliations
Virginia Community Economic Network
Production Credits
Strategic Risk Associates Surdna Foundation The Alleghany Foundation The Clay Christensen Group The Community Foundation The Democracy Collaborative The Food Trust
The Lenders Coalition for Community Health Centers (LCCHC)
The Reinvestment Fund (TRF) TMI Consulting Inc. Town of Glade Spring Town of Onancock Troutman Sanders LLP Union Bank & Trust Urban Land Institute (ULI) US Department of Agriculture US Department of Housing and Urban
Development
US Department of Treasury US Small Business Administration
USDA – Rural Development
Virginia Asian American Store Owners Association
Virginia Asian Chamber of Commerce Virginia Association of Community Banks
(VACB)
Virginia Bankers Association
Virginia Business Incubator Association Virginia Commonwealth University Center for
Urban & Regional Analysis
Virginia Commonwealth University Medical Center
Virginia Community Action Partnership Virginia Community Development Corp.
(VCDC)
Virginia Community Economic Network (VCEN)
Virginia Community Healthcare Association Virginia Cooperative Extension
Virginia Department of Agriculture and Consumer Services
Virginia Department of Business Assistance Virginia Department of Health
Virginia Department of Housing and Community Development (DHCD)
Virginia Downtown Development Association (VDDA)
Virginia Food System Council
Virginia Foundation for Agriculture Innovation and Rural Sustainability
Virginia Housing Coalition
Virginia Housing Development Authority (VHDA)
Virginia Main Street (VMS)
Virginia Small Business Development Center Virginia Small Business Financing Authority Virginia Tourism Corporation
Wall Residences
Waukeshaw Development Inc.
Weldon Cooper Center for Public Service Wells Fargo
Williams Mullen
Woodforest National Bank Woori America
930 Cambria Street, N.E. Christiansburg, VA 24073 Phone: (540) 260-3126 Fax: (540) 260-3164
100 West Franklin Street Suite 200 Richmond, VA 23220 Phone: (804) 344-5484 Fax: (804) 344-5451
vacommunitycapital.org
Let’s do more,
together!
7001 Loisdale Road Springfield, VA 22150 Phone: (703) 778-9920Mission: To support housing and community development ventures, increase jobs, and build sustainable communities by offering flexible financial products and advisory services.
