VCC: America’s First Benefit Corporation Bank
“As the first regulated bank in the U.S. to become a Benefit Corporation, VCC has set a new model for the financial industry. We know that this is just the beginning as more and more banking institutions follow suit to become forces for good in their communities.”
Rick Alexander, Head of Legal Policy, B Lab
Virginia Community Capital has converted its wholly-owned, FDIC insured, for-profit bank into a Benefit Corporation, and it is the first regulated bank in the US to do so under state statute. The conversion does not affect the bank’s status as a state-chartered banking corporation.
According to B Lab, there are at least 50 State Corporation Commission-recognized benefit corporations in Virginia, which include well-known companies like ImpactMakers! Impact Insurance, TMI Consulting, and others.
“This is a very exciting day for us at B Lab,” said Rick Alexander, Head of Legal Policy at B Lab. “As the first regulated bank in the U.S. to become a Benefit Corporation, VCC has set a new model for the financial industry. We know that this is just the beginning as more and more banking institutions follow suit to become forces for good in their communities.”
Benefit Corporations are stock corporations with the mission of creating a general public benefit defined as positive impact on society and the environment, as measured by a third-party standard. The Commonwealth of Virginia was an early adopter of Benefit Corporation legislation when in 2011, the General Assembly voted to allow companies to amend their articles of incorporation with the Virginia State Corporation Commission to become benefit corporations
VCC is a leader in impact investing in Virginia. Impact investments are investments made to generate social and environmental impact alongside financial return. The growing impact investing market provides capital to address global social challenges such as healthcare, housing, food access, energy efficiency, and job creation. VCC has been able to accomplish this through partner financial institutions who have invested in them including Goldman Sachs, Capital One, Bank of America, Wells Fargo and Virginia foundations such as the Community Foundation of the New River Valley, the Alleghany Foundation and the Cabell Foundation.