Portsmouth EDA approves Bridging Virginia small‑business loan fund to launch in December
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The EDA unanimously approved a Bridging Virginia–administered loan fund aimed at second‑ and third‑stage Portsmouth businesses; loans will range roughly $10,000–$50,000 with rates starting about 2% below WSJ Prime and monthly portfolio reporting to staff.
The Portsmouth Development Authority voted unanimously on Nov. 18 to launch a small‑business loan program administered by Bridging Virginia, a newly certified CDFI that will provide term loans and technical assistance to Portsmouth businesses.
Bridging Virginia’s president and CEO, Leanne Fremel, told the board the program will focus on second‑ and third‑stage businesses with loan sizes targeted at $10,000–$50,000 (the organization’s portfolio average is about $37,500). Rates for the program will start roughly 2 percentage points below the Wall Street Journal Prime rate on the day of underwriting, with available underwriting discounts for borrowers who complete technical assistance or mentoring that staff consider risk mitigants.
Fremel said Bridging Virginia became a federally certified community development financial institution in 2024 and that the organization aims to close loans quickly; the firm commits to an approval decision within five business days after an application reaches the underwriting stage and to monthly portfolio servicing reports for EDA staff with quarterly anonymized activity reporting for the board. On collateral, Fremel said the lender will place UCC filings on business equipment where appropriate and will not take personal assets like a home or personal vehicle; personal guarantees will generally be required of owners holding 20% or more of a business.
Why it matters: The program is intended to address a local capital gap by providing flexible, relatively small‑to‑mid sized loans and wrap‑around support to businesses that struggle to access larger traditional loans. Staff and Bridging Virginia said outreach will include local technical assistance providers, procurement cohorts and recorded information sessions to reach businesses that do not typically engage with formal cohorts.
Board members asked about delinquency and underwriting; Bridging Virginia said, as a new CDFI, it has five clients on extended care plans within a 33‑client operating portfolio and noted sector‑level charge‑off rates for CDFIs are typically below 1%. Commissioners also discussed marketing strategies to reach businesses that are not already engaged with technical assistance providers; Bridging Virginia and staff outlined plans for information sessions, recorded webinars and coordinated outreach through local partners.
The EDA approved the program 7–0; staff and Bridging Virginia said they plan a December launch with applications opening in the new year. Staff will receive the monthly servicing reports Bridging Virginia commits to provide and quarterly anonymized summaries of lending activity and denials.