Reflections on 2025: A Letter from the CEO

As we share this year's Impact Report, we are approaching a milestone that invites both reflection and resolve: the 20-year anniversary of Locus.

Twenty years ago, we began as Virginia Community Capital with a simple but ambitious promise to be a new kind of financial partner, created to expand opportunity in communities too often overlooked across Virginia. By the end of 2006, that promise had taken shape through six affordable housing and community development loans totaling $3.5 million - and the early formation of a powerful network of like-minded collaborators.

Two decades later, that early commitment has grown into something far larger. Together with our partners, Locus has deployed more than $1.4 billion in loans, unlocked hundreds of millions of dollars in catalytic capital through credit enhancement programs, and played a central role in financing community development in Virginia and beyond. While the scale of our work has expanded, the heart of it has not changed: listening to communities, building trust, and co-creating innovative solutions that address the most pressing community investment challenges.

This approach was put to the test over the past year. Like many across the community development field, we navigated uncertainty, shifting conditions, and moments that required more adaptability than assurance. And yet, those same conditions reinforced why our work and our partnerships matter so deeply.

For Locus, 2025 reflected strong momentum and meaningful milestones made possible by our customers and investors who, like our team, stayed true to their missions despite headwinds.

• $162 million deployed in community development loans. Our highest annual lending volume in our history supported the construction and preservation of affordable housing, strengthened essential community facilities, expanded capacity for food and farm businesses, and advanced solar energy.

• Reactivated our New Markets Tax Credit (NMTC) program. Locus fully committed its $65 million NMTC allocation to high-impact community projects, marking our first NMTC investments in more than a decade. Building on this momentum, we were awarded $75 million in new NMTC allocation authority in 2025.

• Achieved full deployment of the Community Investment Guarantee Pool (CIGP). This first-of-its-kind national initiative mobilized philanthropic balance sheets to unlock an expected $450 million for community development. The program demonstrated the potential of guarantees and other forms of credit enhancement to scale community investment.

• Expanded support for entrepreneurs through the Small Business Development Center (SBDC). The Capital Region SBDC served 445 Richmond-area clients, helping launch 46 new businesses and ranking among the highest-performing SBDCs in Virginia. The team's work strengthened the region's small business ecosystem through advising and technical assistance.

• Advanced our Place-Based Investing Strategy in Southern Virginia.Locus deepened its commitment to community-driven investment by hiring a Community Market Lead focused on Southside Virginia.
• Launched the Mid-Atlantic Coordinated Capital Coalition (MACCC), bringing together partners to pilot a new, coordinated investment model for regional food systems that moves beyond fragmented grantmaking toward scalable, market-driven solutions.

• Recognition for mission-driven banking. Locus Bank received an Outstanding rating under the Community Reinvestment Act, reflecting its continued commitment to serving low- and moderate-income communities.

As we reflect on our successes and enter our third decade, we do so with humility and clarity. The path ahead for CDFIs and community development finance is not guaranteed. Resources are uncertain, structures are evolving, and the need for capital in our communities continues to grow. Meeting this moment will require innovation, advocacy, and leadership across our field.

I believe Locus has both the responsibility and the capacity to rise to this challenge. With a strong financial foundation, a two-decade track record of impact, and a robust network of partners across sectors and regions, we are preparing not just to adapt, but to lead.

This belief is also personal. When I think back on my own career and the obstacles encountered along the way - from economic downturns and a global pandemic to moments of social reckoning - one truth stands out. When hope feels most fragile, the transformative power of partnership makes all the difference.

Thank you for being part of this journey. We are honored to step into our next chapter alongside you, continuing to invest in stronger, more resilient communities.