Outcomes of the Virginia Community Development Financial Institution (CDFI) Fund — July 1, 2025

Summary

This is a July 1, 2025 letter to Governor Youngkin and the Chairs of the Senate Finance and Appropriations Committee and House Appropriations Committee, documenting outcomes of the Virginia Community Development Financial Institution (CDFI) Fund. It states that the fund was created during a 2021 Special Session and the 2023 Special Session Appropriations Act allocated $1.5 million to the CDFI Fund. Fifteen applications were received, with five certified CDFIs and two entities seeking CDFI certification granted a total of $1.35 million in funding. For FY24, the outcomes of several FY22 grants included 38 new businesses created, 36 businesses expanded, 246 businesses retained, and 49 jobs created. The signature block names Maggie Beal, Interim DHCD Director.

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COMMONWEALTH of VIRGINIA

DEPARTMENT OF

July 1, 2025

The Honorable Glenn Youngkin

Governor of the Commonwealth of Virginia
Patrick Henry Building

Richmond, VA 23219

The Honorable Louise Lucas

Chair, Senate Finance and Appropriations Committee
201 North 9th Street, 13th FI.

Richmond, VA 23219

The Honorable Luke E. Torian

Chair, House Appropriations Committee
201 North 9th Street, 12th FI.
Richmond, VA 23219

Dear Governor Youngkin, Chair Lucas, and Chair Torian,
| am writing to provide documentation of the outcomes of the Virginia Community

Development Financial Institution (CDFI) Fund as required in Section E of § 36-140.01 of the
Code of Virginia.

The CDFI Fund was initially created during a 2021 Special Session of the General Assembly
through a one-time allocation establishing a fund to provide grants to Community Development
Financial Institutions (CDFls) and Community Development Enterprises (CDE). The purpose of
the fund was to provide flexible and favorable financing to small businesses impacted by the
COVID-19 pandemic (named the Virginia Small Business Resiliency Fund).

During the 2023 General Assembly Session, the CDFI Fund was codified through the passing of
Chapters 639 and 640 of the Acts of Assembly. The new law established the CDFI Fund and
provided that the Fund is to support CDFls and other entities whose primary purpose is to
provide financing to small businesses in Virginia through grants and loans. In the 2023 Special
Session | of the General Assembly, the Appropriations Act allocated $1.5 million to the CDFI
Fund.

We Y
IRGINIA
HCD

EQUAL HOUSING

OPPORTUNITY,

Virginia Department of Housing and Community Development | Partners for Better Communities
Main Street Centre | 600 East Main Street, Suite 300 Richmond, VA 23219
www.dhcd.virginia.gov | Phone (804) 371-7000 | Fax (804) 371-7090 | Virginia Relay 7-1-1

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With the codification of, and allocation to, the CDFl Fund, DHCD renamed the VSBRF to the
Commonwealth’s Capital for Communities Fund (CCCF) and initiated a scaled version to
increase capital access and generate new economic activity in distressed communities
throughout the Commonwealth, removing programmatic areas that were supporting pandemic
recovery efforts.

In FY24, staff held focus groups with CDFls and CDEs across the Commonwealth to formalize
program guidelines and generate interest for a competitive CDFI Fund application process
beginning in November 2023. Fifteen applications were received, with five certified CDFls and
two entities seeking CDFI certification granted a total of $1.35 million in funding to expand
technical assistance, services and lending products and build the organizations’ internal
capacity to serve more borrowers. Outcomes associated with these applicants will be available
in FY25, including business and job creation, loans deployed, and private investment leveraged.

Several FY22 CDFI Fund grants are still active and continue to submit outcome reports ona
quarterly basis. For FY24, those grant outcomes included 38 new businesses created, 36
businesses expanded, 246 businesses retained, and 49 jobs created.

A summary of the program impact can be found below. All funds are fully obligated for this
program, and there will be no further application rounds unless additional funding becomes
available in future approved budgets.

Sincerely,

Maggie Beal
Interim DHCD Director

Cc: The Honorable Secretary of Commerce and Trade Juan Pablo Segura

Virginia Department of Housing and Community Development | Partners for Better Communities
Main Street Centre | 600 East Main Street, Suite 300 Richmond, VA 23219
www.dhcd.virginia.gov | Phone (804) 371-7000 | Fax (804) 371-7090 | Virginia Relay 7-1-1

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EQUAL HOUSING
Community Development
Financial Institutions (CDFI Fund)

Impact Statement

| Commonwealth’s Capital for Communities Fund (CCCF)

Total Funding Requested

Applications Received $3.87 million

Applications Funded

Total Funding Distributed

| Virginia Small Business Resiliency Fund (VSBRF)

New Businesses Businesses Businesses
Created Expanded Retained
New Jobs Jobs
Created Retained

Total value of loans Dollars leveraged


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