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Newport News Introduces $50 Million Loan Fund for Businesses

Local leaders and business owners come together to celebrate the launch of the Peninsula Cooperative Fund in Newport News.

News Summary

Newport News is launching the Peninsula Cooperative Fund, a $50 million initiative to support small and mid-sized businesses. The fund addresses capital access gaps in underserved communities, offering loans up to $5 million and mentorship opportunities. Backed by local organizations, the fund aims to boost growth in various sectors while focusing on diversity and inclusion. The initiative, highlighted at a launch event attended by local officials, emphasizes empowering businesses and fostering economic development in the area.

Newport News has become the launch site for a significant financial initiative aimed at supporting small and mid-sized businesses in the region. The Peninsula Cooperative Fund (PCF) has introduced a $50 million loan fund designed to address the capital access gap for underserved communities in Hampton and Newport News, which have been designated as Community Development Financial Institution (CDFI) deserts. This indicates a critical lack of investment from mission-driven lenders in the area, making the establishment of the PCF particularly crucial.

The fund allows borrowers to apply for loans of up to $5 million, with additional micro loans available for those in need of smaller amounts. Importantly, the initiative features flexible repayment plans and will also provide mentorship opportunities from local businesses, thereby enhancing the support offered beyond just financial assistance.

The Peninsula Cooperative Fund enjoys the backing of several influential organizations and stakeholders, including City First Bank and the Greater Peninsula CARES Foundation. Noteworthy contributors, such as Sentara Health and TowneBank, have also played a significant role in this initiative. The board guiding the fund consists of respected community figures, further ensuring its commitment to the region’s economic development.

The initiative particularly aims to spur growth in sectors such as maritime, defense, energy, aerospace, technology, advanced manufacturing, medical, life sciences, and food and beverage. A focus on minority-owned businesses demonstrates a commitment to enhancing diversity, equity, and inclusion within the local entrepreneurial ecosystem.

At the launch event, which took place at Gethsemane Baptist Church in Newport News, local officials highlighted the growing need for support for small businesses in the area, which is experiencing economic growth. U.S. Senator Mark Warner and Congressman Bobby Scott were in attendance to express their support for minority-owned businesses, especially amid the decline of federal programs aimed at supporting such enterprises.

The Peninsula Cooperative Fund is viewed as a vital resource for stimulating job creation and economic development in Hampton and Newport News. Local leaders, including Mayor Jimmy Gray, emphasized the importance of empowering local businesses and enhancing economic opportunities for community members. In addition to providing funding, the initiative also aims to offer technical assistance in areas such as accounting and legal support, ensuring that businesses have the comprehensive aid necessary to thrive.

This new funding initiative comes at a critical juncture as the local economy continues to expand. By targeting underrepresented communities and industries, the Peninsula Cooperative Fund seeks to bridge the gap in financial resources and foster a more equitable business environment in the Hampton and Newport News region.

In conclusion, the Peninsula Cooperative Fund represents a promising step forward for small businesses facing barriers to capital access. With the collective efforts of local institutions and the community, PCF aims to encourage entrepreneurship, stimulate growth, and ultimately enhance the overall economic landscape of the area.