For-Profit Bank Becomes First Benefit Corporation Bank in U.S.
Virginia Community Capital (“VCC”) announces that it has converted its wholly-owned, FDIC-insured, for-profit bank into a Benefit Corporation. VCC’s is the first regulated bank in the United States of America to become a Benefit Corporation. The conversion will attract new investors to help communities and people all across the Commonwealth of Virginia prosper. The conversion does not affect the bank’s status as a state-chartered banking corporation.
Since its founding in 2006, VCC has invested in 488 projects with a total economic impact of $766 million and 4,997 new and retained jobs. The conversion to a Benefit Corporation will allow the bank, within its banking charter, to better align its 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. To view VCC’s 10 year return on investment report click here.
“This is a tremendous day both for the banking industry and the Benefit Corporation movement,” said Jane Henderson, President and CEO of VCC. “We are using our business as a force for good in our communities by investing capital to address social challenges such as healthcare, housing, food access, energy efficiency, and job creation.”
VCC’s conversion was conducted in partnership with B Lab, the global nonprofit organization that assists companies to meet the highest standards of verified, overall social and environmental performance, public transparency, and legal accountability. There are currently 1,659 Certified B Corporations and 192 registered Benefit Corporations across 47 countries and in 130 industries. Benefit Corporations are stock corporations with at least one mission of creating a general public benefit such as a positive impact on society or the environment, as measured by a third-party standard.