Peninsula businesses to get capital boost

Small and midsize businesses in distressed and underserved areas of Hampton and Newport News will be able to access economic support through a new $50 million low-interest business loan program.

Launched in June by the nonprofit Greater Peninsula C.A.R.E.S. Foundation, the Peninsula Cooperative Fund is designed to close funding gaps and boost minority-owned businesses. PCF is managed by a five-member board that includes Sentara Health’s chief administrative officer, Aubrey Layne.

“Our goal is to provide opportunities for businesses that are underfunded and undercapitalized to be put in growth positions,” says Brian Woolfolk, PCF’s general counsel. “There is no shortage of need.”

Businesses will be able to obtain loans of up to $5 million. The fund also plans to launch microloans for smaller businesses. Organizers aim to raise the $50 million and have the fund operational by summer 2026.

Twenty to 35 businesses could be assisted during the fund’s 10-year life span. Woolfolk says the fund could then be renewed and expanded to other areas, including South Hampton Roads.

Key growth industries the fund plans to target include energy, advanced manufacturing, life sciences, health care, aerospace and defense. “We want to work with businesses within those industries and help them scale up to benefit from the economy on the Peninsula,” PCF Chair Joni Ivey says.

Expected initial investors in the fund include Sentara, TowneBank and City First Bank, which is acting in an advisory role for PCF. Investment amounts have not been disclosed. PCF board members are meeting with other potential donors, including national organizations that work with Community Development Financial Institutions (CDFIs) like City First Bank that provide affordable loans to low-income individuals and businesses.

Newport News and Hampton each invested $200,000 in the fund as seed money. Both cities have been identified as Community Development Financial Institution Deserts by CDFI Friendly America, meaning they receive less than $571 per capita in investments from CDFIs.

Hampton Mayor Jimmy Gray says the fund will provide access to capital for startups and existing businesses seeking to expand. “It’s a great opportunity for Hampton. The long-term benefits will be transformative for our community.”

Businesses also will receive technical assistance and mentoring, says Newport News Mayor Phillip Jones. “It’s more than just writing a check. It helps businesses for the long term. This is not a handout. It’s a hand up.”