Better Business Bureau Report for
REDC Community Capital Group, Inc.

Better Business Bureau Report issued January 2011
Better Business Bureau Report expires January 2014


This BBB Accredited charity meets all 20 Standards for Charity Accountability and is a Seal Holder. Find out more...


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Charity Contact Information

Name: REDC Community Capital Group, Inc.
Address: 411 E. Franklin Street Suite 203
  Richmond, VA 23219
Phone: 804-780-3012
Web Address: www.REDCFINANCE.org
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Better Business Bureau Comments

Formerly known as:Richmond Economic Development Corporation

Year, State Incorporated: 1996, Virginia
Affiliates: None
Stated Purpose: The Corporation was organized exclusively for educational and charitable activities, in order to develop and promote commercial, industrial and manufacturing enterprises aimed at providing employment and job training opportunities for very low income and moderate income residents in Virginia, primarily in the Richmond/Petersburg MSA. In furtherance of this mission, the corporation can lend to, invest in and own common stock in businesses (start-up and existing small businesses, minority-owned businesses and other businesses), in order to create job opportunities for low and moderate income residents in Virginia.

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Evaluation Conclusions

              

REDC Community Capital Group, Inc. (REDC) meets the 20 Standards for Charity Accountability.
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Programs

              

REDC is a licensed 504 Certified Development Company (CDC) of the U.S. Small Business Administration (SBA), and a certified Community Development Financial Institution (CDFI) of the U.S. Department of the Treasury. Additionally, REDC and its for-profit subsidiary are certified Community Development Entities (CDEs). The latter certifications require us to provide credit and capital to underserved low-income communities. To fulfill our mission, we offer several loan products, including a Micro, Neighborhoods In Bloom (NIB), BEZL, and 504 loan programs. Under these programs, we offer maximum loans ranging from $35,000, under our Micro loan program, and up to $4 million, under our 504 loan program.

For the fiscal year ended June 30, 2010, REDC's program expenses were:

  
Salaries 577,474
Loan Loss Reserve 214,573
Interest Expense 177,899
Occupancy 123,571
Fringe Benefits 65,031
Loan Administration Expenses 60,302
Business Development 46,768
Payroll Taxes and Expenses 41,972
Depreciation 40,842
Communications & Public Relations 40,673
Professional Fees and Services 31,058
Property management 24,606
Office Supplies & Equipment 23,306
Staff Training & Education 17,203
Technical Assistance 13,062
Business Taxes 8,525
Maintenance Expense 7,017
Miscellaneous 6,022
Bank Fees 5,058
Insurance 5,034
Leasehold Impr. Int. Exp. 3,568
Board Meeting Expenses 607
Total Program Expenses: $1,534,171
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Governance

              

Chief Executive : Mr. Stephen J. Schley, President and CEO
Compensation*: 
$114,408

Chair of the Board: Mr. David N. Smith
Chair's Profession / Business Affiliation: Deputy Secretary of Commerce and Trade

Co-Chair of the Board : Mr. Andrew M. Kerr

Chair's Profession / Business Affiliation: Vice President, Sun Trust Bank

Co-Chair of the Board : Stephen J. Schely

Chair's Profession / Business Affiliation: President and CEO of REDC Community Capital Group, Inc.

Board Size: 15

Paid Staff Size: 12

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

telephone, grant proposals, internet, membership
Fund raising costs were 1% of related contributions. (Related contributions, which totaled $1,633,687, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on REDC's audited financial statements - consolidated for the fiscal year ended June 30, 2010.

Source of Funds  
Grant Funds 1,633,687
Program Income 435,549
SBA 504 Program Income 47,324
Rental Income - Community Development Investments 18,398
Loan Admin. Fee Income 15,000
Other Income 11,749
Tuition Fee Income 4,850
Interest Income 934
Total Income $2,167,491


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Uses of Funds as a % of Total Expenses

Programs: 92%  Fund Raising: 1%  Administrative: 7% 

Total income $2,167,491
Program expenses $1,534,171
Fund raising expenses 23,721
Administrative expenses 118,606
Total expenses $1,676,498
Income in Excess of Expenses 490,993
Beginning net assets 1,207,725
Ending net assets 1,698,718
Total liabilities 4,696,351
Total assets $6,395,069


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