Over the years, small commercial corridor businesses and entrepreneurs have been able to sustain and scale up operations with the assistance of Community Development Financial Institutions (CDFIs). CDFIs are lenders with a mission to provide equitable, responsible financing to communities that aren’t typically reached by mainstream finance. They can be banks, credit unions or loan funds operated by business support non-profits.
Many communities rely on CDFIs to help individuals reach their financial goals and build long term wealth. While this assistance can come in the form of financing for opening or expanding a business, or down payment assistance for new home buyers, it can also be through services. Since CDFIs are mission driven, they often provide services in addition to financing, such as business counseling and credit improvement workshops.
Small businesses, such as D&H Construction Services, have grown in part thanks to the support of one of Richmond’s CDFIs, LOCUS Impact Investing. What began as D&H Painting and Wallcovering has evolved into D&H Construction Services, Inc. offering a wide range of services from general contracting to alterations and renovations and even facilities maintenance, and employing nearly 15 professionals in the Richmond region. Funds from LOCUS’ Economic Equity Fund enabled D&H to purchase a commercial real estate property for a new central office.
There are over 15 CDFIs across the Commonwealth, with most localities covered by one or more CDFI services. To find a CDFI covering your area, click here to view a CDFI map provided by Virginia’s CDFI Coalition. For questions regarding which CDFIs cover your locality, please contact Jessica Hartness, Microfinance Program Administrator, at jessica.hartness@dhcd.virginia.gov.
Image Credit (D&H President) – D&H Construction Services, Inc.
Image Credit (Bottom Image) – Virginia CDFI Coalition
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