Four Community Banks Launch Banking on Diversity-Minority Business Fund

by John Reid

Yesterday First Bank announced the launch of the Banking on Diversity initiative, a minority business funding program to improve and develop local communities.

The Banking on Diversity program was created through a partnership of four community banks in the regions including Suburban Northern Virginia, Northern Shenandoah Valley of Virginia, the Eastern Panhandle of West Virginia, and Washington County, Maryland. In addition to First Bank, sponsoring banks include Bank of Clarke County, BCT- The Community’s Bank, and The Fauquier Bank.  

“Historically our industry has been less than inviting to minority-owned businesses. It is clear that minority-owned businesses have a steeper climb than others and this group of bankers has decided to create a loan fund that will be available specifically to minority-owned businesses in our markets,” said Scott Harvard, CEO of Strasburg-based First Bank. “We hope this initiative can be a model for lifting up fledgling and startup minority-owned businesses and create a foundation from which they can thrive.”

The banks have collectively committed up to $1 million in interest-free loans to aid both startup and existing minority-owned small businesses within the sponsoring community banks’ markets. There are two loan programs: one for start-ups and one for existing businesses. The program is expected to include educational seminars to support the evolution of the business. Qualified businesses may receive only one loan. According to the Winchester Star, the application process will be open until the money runs out.

Program Guidelines are as follows:

  • Only available to for-profit businesses
  • Must have MBE Certification (Minority Business Enterprise)
  • Annual revenues cannot exceed $1MM (business) or $500k (farms)
  • Business must be located in counties of Clarke (VA), Fauquier (VA), Frederick (VA), Loudoun (VA), Prince William (VA), Shenandoah (VA), Warren (VA), city of Winchester (VA), Berkeley (WV), Jefferson (WV) or Washington (MD)
  • Annual individual loan amounts up to $50,000 (existing business) or $10,000 (new business)
  • New business must have been in existence for at least 3 months.
  • Existing business must have been in existence for more than 2 years
  • Ability to provide documentation as described below

To qualify as a minority-owned business, the business must be 51 percent owned and operated by one or more minority individuals who are United States citizens or legal resident aliens – or – 51 percent equity ownership in a corporation, partnership, or LLC or other entity and is owned by one or more minority individuals who are United States citizens or legal resident aliens, and both the management and daily business operations are controlled by one or more minority individuals.

The Banking on Diversity program is open for application. Those interested may apply by visiting a bank partner’s website or a local branch of their choosing. Though not required, it is encouraged for applicants to apply with a partner bank in their geographic region. The websites of the banks are as follows:

Releated

VA Legislative Black Caucus condemns conditions at Red Onion State Prison

by John Reid Earlier this month, the PW Perspective reported on a petition by Concerned Citizens and Community Action Network to address reported incidents at Virginia’s Red Onion State Prison. Today, the Virginia Legislative Black Caucus issued a statement on the atrocities: “The VLBC is horrified at recent reports of incarcerated individuals setting themselves on […]

by John Reid