
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 26, 1990                   TAG: 9007260183
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: MAG POFF BUSINESS WRITER
DATELINE:                                 LENGTH: Short

DOMINION UNIT OFFERS SMALL-BUSINESS CAPITAL

Dominion Capital Markets Corp., a subsidiary of Dominion Bank, has been licensed as a new small business investment company to provide capital for small companies.

Small business investment companies are licensed and regulated by the U.S. Small Business Administration and are eligible to receive some federal funding. They are, however, privately owned and operated to provide venture capital for growth and expansion of small companies. Their initial capital comes from private sources.

Gregory W. Feldmann, president, said the bank subsidiary generally does not fund business start-ups. It will serve as a later-stage investment arm for the bank and will support companies that have growing sales volumes and, at minimum, have reached the break-even point.

Feldmann said Dominion started the unit because Virginia is an under-served market for venture capital. "We hope that our involvement will promote growth of local companies and boost economic development in our communities."

Small business investment companies finance small firms with straight long-term loans, equity-type investments or both. Terms are negotiated. The unit may obtain partial ownership of the small firm but cannot take a controlling interest.

Many also provide business management aid to the companies they finance.

by CNB