CHARLES TOWN — The Bank of Charles Town, along with three other community banks in the tri-state area, is announcing the launch of the Banking on Diversity initiative, a minority business funding program to improve and develop local communities.
In addition to the Jefferson County-based BCT, the Bank of Clarke County, The Fauquier Bank and First Bank are also joining in a partnership to help provide needed funds to minority-owned businesses in their areas.
A press release issued by the banks indicates that the banks have collectively committed up to $1 million in interest-free loans to aid both startup and existing minority-owned small businesses with the sponsoring banks’ markets.
Bryan Decker, senior vice president and director of marketing and communication for BCT, explained that each business applying for either a startup loan or one for an existing business must be a for-profit business and 51% owned and operated by a minority as defined by the Minority Business Enterprise and must have certification in that organization.
To qualify as a minority-owned business, the business must be 51% owned and operated by one or more minority individuals who are United States citizens or legal resident aliens – or – 51% equity ownership in a corporation, partnership or LLC or other entity and is owned by one or more minority individuals who are United States citizens or legal resident aliens, and both the management and daily business operations are controlled by one or more minority individuals.
The MBE defines minorities as women and members of presumed groups, including, generally speaking, Black Americans, Hispanic Americans, Native Americans and individuals with Asian Pacific origins or Subcontinent Asian origins.
“Our CEO, Alice Frazier, along with leaders at the other banks, felt they needed to do something to assist these minorities,” Becker said.
Businesses applying for the loans must meet guidelines to be considered for the loans. The businesses must currently be in operation, Decker explained.
Those seeking startup funding must have been in operation for a minimum of three months and up to two years. The businesses falling in this category can qualify for a $10,000 unsecured loan. For businesses in operation for more than two years, loans up to $50,000 can be obtained, also unsecured, by the minority-owners.
Qualified businesses may only apply for one of the two loan types, startup or existing business, and must be located in either Berkeley or Jefferson counties in West Virginia; Clarke, Fauquier, Frederick, Loudoun, Shenandoah, Warren or Prince William counties or the City of Winchester in Virginia; or Washington County in Maryland.
“The loans come from the community banks and not guaranteed by any other agency,” Decker explained, adding the local banks are taking the financial risks when providing the loans.
The Banking on Diversity program is open for application, and those interested in applying may do so by visiting a bank partner’s website or a local branch of their choosing. While it is not required that business owners apply in a specific area, it is encouraged that they apply with a partner bank in their geographic region.
Websites for each of the banks are as follows: Bank of Charles Town www.mybct.bank; Bank of Clarke County at www.bankofclarke.bank; The Fauquier Bank at www.tfb.bank; First Bank at www.fbvirginia.com.
