Richmond, VA- Richmond Economic Development Corporation (REDC) closed $3,642,531 in new loans to small businesses in Richmond during fiscal year ended June 30, 2008, which represents an 83% growth over the $2.1 million made during the previous year. At the same time, REDC made a $251,074 investment outside of Richmond , for total loans and investments closed during the year of $3,893,605. As a result of these activities, 345 jobs were created or retained, over 16,500 square feet of commercial space were acquired or renovated, and REDC was able to provide a 36:1 leveraging on funds invested by the City of Richmond during the year.

Stephen J. Schley, REDC President & CEO, in commenting on the increased lending activity said “Our licensing as a 504 Certified Development Company (CDC), gained traction and accounted for $1.4 million of loan volume during the year. Furthermore, the 504 and the Business Enterprise Zone Loan (BEZL) programs will play an even larger role in bringing long-term, affordable capital to small and minority-owned businesses, as we intensify our lending and investing activities in the Richmond/Petersburg MSA."

REDC was incorporated in 1995 and is a licensed intermediary of the U.S. Small Business Administration's (SBA) Microenterprise and 504 Development Loan programs. In addition to the City of Richmond and the SBA, REDC receives funding from the Community Development Financial Institutions (CDFI) Fund, which is also a federal government agency. Although, REDC is able to lend statewide, it is primarily targeting small businesses in the Richmond/Petersburg MSA. With a lending capacity of up to $4 million, REDC can finance projects up to $10 million for manufacturers, in partnership with local financial institutions, or lesser amounts for other types of businesses.

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