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Henrico County’s Economic Development Authority yesterday made an initial $2 million deposit into a new account with Virginia Community Capital, a community development financial institution that makes impact investments statewide. The money will allow VCC to secure loans for business owners and nonprofits through the second round of the Paycheck Protection Program, a federal COVID-19 relief loan managed by the U.S. Small Business Association. VCC is an approved SBA lender for the PPP loans, which are forgivable if borrowers meet certain criteria.
To date in Henrico through the PPP, VCC has secured 19 loans totaling more than $2.9 million for county businesses and nonprofits. The businesses account for 226 jobs in the region. In total, it has approved 81 loans for businesses in metro Richmond and 151 loans totaling $19.2 million and accounting for 2,207 jobs statewide.
By contrast, according to VCC Vice President and Director of Community Innovation and Marketing Leah Fremouw, the bank last year made a total of 124 loans.
VCC has about loan applications from about 20 local businesses and organizations ready to go once the new funding is available, Fremouw said.
“As soon as the SBA money is open, we will hit submit,” she said.
The deposit is an FDIC-insured, interest-bearing, risk-free account. Deposits with the bank allow VCC to reinvest the funds to grow sustainable communities in Virginia, according to officials with the bank.
After approving $349 billion in loans, the SBA program was paused but is expected to be replenished this week with $310 billion through action by Congress and the President.
“The Henrico EDA’s deposit goes a long way toward helping VCC help small businesses and nonprofit organizations keep workers on the payroll in the wake of the coronavirus fallout,” said Wayne Waldrop, president of Lending & Community Innovation at VCC. “We thank the Henrico EDA for their support of our programs and trust in our team, who are committed to working closely with our partners and clients to continue supporting economic growth in Virginia.”
“We recognize that COVID-19 is a trying time for Henrico businesses,” said Anthony Romanello, Henrico EDA’s executive director. “In the last month, the county and the EDA have taken steps to shore up Henrico’s business community, including the Nourish Henrico program, through which Henrico restaurants provide meals to first responders, and the Board of Supervisors’ action to postpone penalty and interest on hotel, meals, real estate, personal property, and machinery and tools taxes. This deposit to VCC is one more way Henrico is there for our businesses. If our support means that our business community can endure its challenges, maintain its resiliency, and emerge stronger on the other side, we’re honored to help.”
