Virginia Community Capital converts bank to benefit corporation

Published April 4, 2016 by Robert Powell, III

Virginia Community Capital has converted its for-profit bank into a benefit corporation.

In addition to profit, the legally defined goals of benefit corporations include a positive impact on society and the environment.

The bank is the first regulated U.S. bank to become a benefit corporation under state statute, according to B Lab, a Pennsylvania-based organization that sets standards for benefit corporations.

In 2011, the Virginia General Assembly passed legislation allowing companies to amend their articles of incorporation with the Virginia State Corporation Commission to become benefit corporations. 

The conversion does not affect the bank’s status as a state-chartered banking corporation. 

“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,” Jane Henderson, the president and CEO of VCC, said in a statement. “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. All of which VCC has been doing for the past 10 years.”
 
VCC’s projects include: community revitalization efforts in Floyd, expansion of the Essel Propack America plant in Danville, Pioneer Community Hospital of Patrick in Stuart, the Masonic Theatre in Clifton Forge and the Robert Russa Moton Museum in Farmville.

VCC has offices in Christiansburg, Richmond and Norfolk.