The U.S. Department of The Treasury's Community Development Financial Institutions Fund (CDFI) announced on Friday, October 2, 2009, a grant of $1 million to REDC Community Capital Group. The grant will be used to support REDC's non-profit mission of making credit and capital available to small businesses in low-wealth communities in the Richmond/Petersburg MSA in order to stimulate economic development and to create jobs.

REDC became a certified CDFI in 2000 and has received over $2.7 million, including this latest award, from the Fund. The award is the largest single grant ever awarded to REDC during its fourteen year history. Proceeds from the Fund will recapitalize a new $5 million Business Enterprise Zone Loan (BEZL) pool. The BEZL loan program began in 2003 and currently has $3.5 million in loans and investments outstanding. The BEZL program will be available in state-designated enterprise zones of Richmond, Chesterfield, Henrico, Hopewell, Petersburg, Dinwiddie and Prince George, VA and other low-wealth communities of the MSA. Under this loan program, small businesses will be able to apply for financing up to $250,000 for acquiring and/or renovating "owner-occupied" commercial properties.

REDC will supplement and compliment its BEZL lending activities in the MSA with its U.S. Small Business Administration's Micro and 504 loan programs. As a licensed intermediary of the SBA, REDC has the capacity to provide up to $4 million for start-up and expansion financing. "At a time when traditional lenders have tightened their underwriting standards and requirements, our loan programs are designed to make lending more flexible for small businesses to obtain the funding that they need to grow and prosper", said Stephen J. Schley, President and CEO of REDC.

Since inception of its lending activities in 1996, REDC has provided financing to over 703 such businesses aggregating in excess of $27.5 million, which has created/retained 4,969 jobs. REDC has offices in Richmond and Petersburg and is a "one-stop-shop" for small businesses lacking access to traditional bank financing.

« Back to News