Introducing VCC Savings
At Virginia Community Capital (VCC), we consistently look for ways to collaborate and progress our collective goals. We are proud to introduce a new line of business aimed at encouraging saving and asset building.
As a community development financial institution (CFDI), VCC assumes a unique leadership role in the Commonwealth by providing innovative loan and investment solutions for affordable housing and economic development projects. We work to build sustainable communities and this work is invariably encouraged when individuals across the state achieve economic prosperity and social justice. This basic understanding serves as a key impetus for VCC Savings.
Consider the following findings:
A 2009 VA Poverty Reduction task force identified “savings and asset accumulation” as a critical goal requiring immediate attention.
The 2009-2010 Assets and Opportunity Scorecard, developed by the Corporation for Enterprise Development (CFED), indicates substantial disparities in asset ownership in Virginia.
A 2010 survey by America Save$ and the American Savings Education Council indicates that families with less than $50,000 annual income are at particular risk since they do not have adequate savings to pay for unexpected expenses such as car repairs.
VCC Savings will immediately begin addressing these issues with several pilot programs this fall. Our first step into this arena will involve partnerships with programs that encourage regular savings habits and securing adequate emergency savings. We will promote and conduct financial education workshops for consumers and at employer worksites.
Under the guidance of Teresa Walker, who brings 32 years of banking and ample enthusiasm to the effort, VCC Savings is already actively engaged in several partnerships and financial education initiatives:
Pay to Save is an employer-based savings program with the goal to cultivate positive economic behaviors through the creation of an emergency savings fund and providing financial education workshops. VCC Savings has begun working with select businesses through our own SEEDS (Supporting Economic Expansion for Diverse Suppliers) program. SEEDS is a homegrown VCC initiative designed to provide strategic technical assistance to women and minority-owned firms with opportunities for growth.
In addition, VCC’s subsidiary bank, Community Capital Bank of Virginia “Bank”, is launching a new savings account for clients receiving financial education through nonprofit partners. The VA Savers Club Account features no minimum balance requirements, no monthly service charges, competitive interest rates, and FDIC insurance. The Bank also offers Individual Development Accounts (IDAs). IDAs are matched savings accounts which generally provide match savings of 2:1 when qualified candidates are saving for an asset purchase, such as a home, education, or to start or expand a small business.
Outreach efforts are currently underway through a range of fall workshops and collaborations. VCC is a partner in the Virginia Saves initiative and is engaged in launching a local response to the national savings initiative – America Saves.
The Virginia Saves-New River Valley Partnership is planning a year-long calendar of events and workshops designed to promote financial fitness and savings. Other local partners include representatives from Virginia Cooperative Extension, Beans and Rice, Consumer Credit Counseling Service/Money Management International, Carillion Clinic-NRV, VT Saves, SunTrust Bank, New River Community Action Agency and Community Housing Partners Corp.
Watch our upcoming events calendar for more details on the VCC‘s savings and asset building educational opportunities.