Creating Thriving Communities IMPACT InVESTInG I mpact investing represents a dynamic new force in communities across the nation. Socially responsible investors passionately care about helping people and the places where they live and work while seeking positive social impact and financial returns. Investing locally has been shown to deliver immediate results in job creation and community renewal projects. Investments in VCC and deposits with CCB help many investors and community bank partners contribute to our communities’ vitality and vibrancy. We deliver impact to Virginia communities with every dollar invested. VCC offers flexible and diverse ways to invest, which include impact deposits, loan funds, equity investments, and philanthropic grants. A fully integrated capital approach takes many forms. A foundation may deploy a PRI (program-related investment) with grant dollars to enhance economic development in a rural region or purchase preferred stock with attractive returns; an individual investor could make a charitable gift to VCC, invest in a healthy food loan fund or provide a guarantee for a small business expansion. We’re educating audiences on the value and importance of impact investing. We’ve also completed essential credentialing. Last year, we received high approval as a GIIRS Impact-rated organization. GIIRS is the acronym for Global Impact Investing Rating System, a project of the independent nonprofit B Lab. We are active members of Mission Investors Exchange, which is helping VCC share ideas on impact investing and drive philanthropic impact for Virginia. Individuals, foundations, banks, and other philanthropic partners in Virginia are looking for ways to generate both social impact and financial return. VCC has been making impact investments in Virginia communities since 2005. When we bring capital to repurpose a vacant downtown building, we balance risk with the benefits of job creation and Main Street revitalization. When we provide technical assistance to a two-person operation and help them grow to a ten-person venture, we are building opportunity for owners and employees. When we convene meetings to develop an angel fund in a rural region, we are leveraging capital to encourage additional private investments. All of these are examples of impact investment in action at VCC. Impact Investing • Domini Social Investment Fund maintains an impact Certificate of Deposit with CCB and is investigating additional ways to work with VCC’s mission-related investments. • Mary Morton Parsons Foundation supplied a grant to build VCC’s technological infrastructure and to equip the Richmond office for greater loan capacity. • Calvert Foundation has invested in VCC with debt financing to further economic revitalization in underserved communities. • The Cabell Foundation was our first preferred stock investor, supporting VCC’s work with a significant equity investment in 2012. 9