It Takes More Than Capital

As a community development financial institution (CDFI), Virginia Community Capital has always strived to bring both capital and resources to our work. That approach is in our DNA, and it can be seen in the various technical assistance programs we’ve offered over the last 15 years. In these programs, we work with likeminded partners, community leaders, and industry experts to bring consultative services, innovative tools, and catalytic funding to those who have historically lacked access.

While VCC often plays the role of lender, our engagement starts well before money enters the conversation. Community revitalization isn’t a cashed check. It’s a long-term commitment to capacity-building, partnership, and pioneering approaches that build on community assets and contributions. We develop networks of key stakeholders and experts to understand and support the goals of the communities we work with. Then, leaning on our combined experience, we create innovative strategies and flexible financial tools to advance equitable solutions for community-focused projects.

Our approach is based on more than just our experience; we apply an academic framework to evaluate what’s known as capital absorption, or the ability of places to attract and deploy capital in support of low- and moderate-income communities. Measuring capital absorption capacity requires viewing community investment as a set of functions. Success starts with having the right people and circumstances to create a clearly defined vision. Once that vision is embraced, you need technical know-how needed to maximize impact. Then comes the capital investment.

When working with a new community, we make no assumptions about the aspirations and desires of the people who live there. Instead, we look for local leaders, or the “spark plugs” of the community, who already have a pulse on what exists and what’s needed. Early in community development projects, you’ll often find us simply facilitating conversations and ensuring the right people have a seat at the table. The community needs to be part of the visioning process to believe it, own it, and realize it.

When it comes to technical assistance and capacity-building work, our partners fill varying roles. Before we launch these programs, we’ll typically receive supportive funding from other financial institutions or philanthropic organizations. These funding partners often share our values and have a mission to support a specific cause, such as business ownership or healthy food access. Whether the program includes a special loan fund, targeted consultative services, or both, the support we receive from our fellow community development advocates is essential.

Once the foundation of a program is built, it’s time to get to work delivering assistance to community stakeholders, and we often do this alongside experts and practitioners from various backgrounds. Sometimes they are a local accountant or attorney who can complement our financing guidance with business development expertise. Other times, they’re the director of a nonprofit or an economic developer who can speak to grantmaking or local tax incentives. Our goal is to leverage our statewide network and experience to bring the most valuable tools to a community’s change makers. VCC is never a dead-end – if we don’t have the right resources, we’ll find someone who does.

You’ll often hear VCC employees talk about the spirit of innovation that runs throughout our organization. Fifteen years is a relatively short lifetime for a financial institution, but our passion for taking new approaches and using emerging tools has positioned us as seasoned professionals in the world of community development finance.

Like many organizations, the events of 2020 forced us to move our services — namely, in-person workshops and consultations — online. Cancelling these vital pieces of our work was not an option, not while many small business owners navigated the most confusing and destructive time of their lives. In addition to using new tools to maintain access to education and resources, we partnered with other institutions to:

• Relaunch the Capital Region Small Business Development Center.
• Develop and introduce the Open for Business Loan Fund, which serves small women- and minority-led business owners.
• Harness LOCUS’s philanthropic consulting expertise to guide community foundations as they addressed systemic issues laid bare by the pandemic and racial injustice.

The last 18 months have only further prioritized innovation as a core value at VCC. It’s more important than ever to explore new ways of supporting communities as they rebuild after an exceptionally challenging period. We’re energized by the new partnerships we’ve formed, and we can’t wait to introduce the unique financing and technical assistance programs we’re building together.

Every employee at VCC and LOCUS brings something special to our work. In addition to meaningful experience in the field, we look for team members who have a passion for community revitalization. Most importantly, our people want to be a resource for all – whether a client takes out a loan, makes a deposit, or is simply looking for help.

The plethora of financing options available to real estate developers, municipalities, and business owners can be overwhelming. When we work with these stakeholders, we can help them navigate federal, state, and local funding streams and brainstorm innovative capital stacking solutions. We can talk through the use of tax credits, grants, traditional debt, and guarantees to fill gaps so foundations, individual investors, and business owners can realize their visions.

We also bring our experience in seeing the bigger picture. We understand the cycle of ups and downs of revitalization projects. We know to look out for environmental issues or capacity challenges often faced during the construction process. We’re experienced in facilitating meetings and amplifying voices to ensure an inclusive path forward. And if there’s a skill we don’t have, we know where to find it.

Success is specified at a local or personal level; we can’t define it for a community. However, we do embrace the importance of evaluation. Without measuring results, one won’t learn, grow, or pivot when needed.

We could just look at outputs – how many jobs were created, affordable housing units made available, etc. – but that’s just a part of the story. How did the new job reduce food insecurity? Did an affordable place to live enable a family to focus more on education? We are pushing ourselves and our collaborators to do more to consider all the social determinants of health in our work. While we’re currently tracking to the global Sustainable Development Goals set by the United Nations, we’re exploring new ways to paint a more comprehensive picture of the impact we drive alongside our partners.