In a first ever for a bank, Virginia Community Capital has switched its for-profit mandate to a socially responsible, but still profit oriented, benefit corporation model. The new business model, of impacting investing, highlights environmental and social investments and commits capital to these endeavors.
Not a retail bank with branch offices, Community Capital Bank is the bank entity of Virginia Community Capital, a nonprofit company with offices in Richmond, Christiansburg and Norfolk.
Virginia Community Capital
Recently, President and CEO, Jane Henderson was quoted as saying, “Since our founding in 2006, Virginia Community Capital has invested in 488 projects with a total economic impact of $766 million and 4,997 new and retained jobs.” [1]
Addressing underserved markets for low to moderate income citizens, Virginia Community Capital’s mission supports housing and community development ventures that generate jobs while providing financing and advisory services.
For the last 10 years, the bank has invested in revitalization projects such as the Pioneer Community Hospital of Patrick in Stuart, the Masonic Theatre in Clifton Forge, and the Robert Russa Moton Museum in Farmville.
These investments have been initiated through joint ventures with other financial institutions and foundations, including Goldman Sachs, Capital One Financial Corp., Bank of America Corp., Wells Fargo & Co., and the Cabell Foundation in Richmond, the Community Foundation of the New River Valley in Christiansburg, and the Alleghany Foundation in Covington.
“By becoming a benefit corporation, we will be able to better align our long-term mission and create value by making additional commitments to higher standards of purpose, accountability and transparency,” said Henderson.[2]
B Corp
In 2011, the Virginia state General Assembly signed on to become one of the early states that allowed companies to revise their articles of incorporation. Now, under the Virginia State Corporation Commission, companies can register to become B Corps.
B Corps are stock-issuing corporations with missions that serve the general public by having positive impacts on society and the environment. These corporations must meet a third-party standard to fulfill their mandate. Currently, Virginia recognizes approximately 50 B Corps throughout the state.
For individual and institutional investors, B Corp status provides an entrée into the market for investors who want to participate in impact investing.
By converting to this new standard, Community Capital Bank of Virginia has become the first regulated U.S. bank to list under benefit corporation status or B Corp state statute.
“As the first regulated bank in the U.S. to become a benefit corporation, VCC has set a new model for the financial industry,” said Rick Alexander, head of legal policy at B Lab, a Pennsylvania-based nonprofit group that promotes the B Corp model.[3]
Learn More
Learn how CT can guide you through the ins and outs of forming a Benefit Corporation. Contact a CT representative at 844-234-4745.
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[1] Community Capital Bank becomes first B Corp bank in U.S., Richmond-Times Dispatch. Carol Hazard, April 4th, 2016
[2] Community Capital Bank becomes first B Corp bank in U.S., Richmond-Times Dispatch. Carol Hazard, April 4th, 2016
[3] Community Capital Bank becomes first B Corp bank in U.S., Richmond-Times Dispatch. Carol Hazard, April 4th, 2016
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