WINCHESTER — A pair of local banks have joined as partners with two other banks in the tri-state area to launch an initiative geared toward helping minority-owned businesses.
The Banking on Diversity program was created through a partnership that includes Bank of Clarke County, First Bank of Virginia, Bank of Charles Town and The Fauquier Bank.
Together, the four banks have committed up $1 million in interest-free loans that are aimed to help startup and existing minority-owned businesses. The application process will be open until money runs out.
“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,” Scott Harvard, CEO of First Bank, said. “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.”
Brandon Lorey, Bank of Clarke County’s CEO, said the program was started after the four CEOs had noticed an underserved market during the Paycheck Protection Program process.
“We wanted to see what we could do to help there,” Lorey said. “Certainly, we recognize the number of minority-owned businesses that we bank and our competitors bank don’t necessarily represent the composite number (of minority-owned businesses). We need to do something about that and make sure we’re out there for everyone.”
Lorey said the banks have been working together during the COVID-19 pandemic already, leaning on one another to make sure filings for things such as PPP grants are being done according to the Small Business Administration guidelines.
“We’ve developed a relationship, so it seemed to be the natural next step,” Lorey said.
As it is in most industries, banking tends to be competitive. Lorey said while the four CEOs of the participating banks are highly competitive, they were able to set that aside to work together.
“I think we recognized that this is something that really represents the fact that community banks are only as good as the communities they serve,” Lorey said. “This is a place where we need to put community above competition.”
The program is expected to include educational seminars to support the evolution of the business. Qualified businesses may receive only one loan.
Program guidelines include:
– Must have MBE Certification (Minority Business Enterprise)
– Annual revenues cannot exceed $1 million (business) or $500,000 (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 three months.
– Existing business must have been in existence for more than two years
– Ability to provide documentation as described below:
To qualify as a minority-owned business, the business must be 51% owned and operated by one or more minority individuals who are United States citizens or legal residents or 51% 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 residents, and both the management and daily business operations are controlled by one or more minority individuals.
Those eligible to apply can apply at any of the four participating banks, no matter which area they’re located in. For example, an eligible applicant in Washington County, Maryland could apply at First Bank of Virginia or the Bank of Clarke County.
“We are pleased to join with our fellow community bankers to ensure our commitment to our community includes all communities,” Harvard said. “Through this fund we can make a positive impact on underserved communities in our markets and help deserving businesses grow and thrive. We are excited to be a part of this important initiative.”
Those interested may apply by visiting a bank partner’s website or a local branch of their choosing. The websites of the banks are as follows: Bank of Clarke County: www.bankofclarke.bank; BCT-Bank of Charles Town: www.mybct.bank; The Fauquier Bank: www.tfb.bank; First Bank: www.fbvirginia.com.
