Economic development financing is available for acquisition, construction and equipping of commercial and industrial facilities. Through the public taxable bond market, the Virginia Small Business Financing Authority (VSBFA) supplies financing to Virginia businesses. Taxable bonds, exempt from Virginia state income tax, provide long-term, fixed asset financing. The applicant must own, manage, or occupy the facility being financed and be providing goods or services. Contact VSBFA at (866) 248-8814 or go to Virginia Small Business Financing Authority for more information.
Loan Guaranty Program
In order to increase the availability of short-term capital for small businesses, the Virginia Small Business Financing Authority (VSBFA) developed a program to reduce the risk banks face in making loans. They will guarantee up to $500,000 or 75% of a bank loan or line of credit amount, whichever is less. Financing is good for short-term business assets including accounts receivable, working capital, inventory, and fixed-asset purchases such as office or research equipment. Contact VSBFA at (866) 248-8814 or go to VSBFA Loan Guaranty Program for more information.
Virginia Capital Access Program (VCAP)
To encourage banks to make loans to riskier credit profiles, VCAP uses the concept of portfolio insurance and establishes a loan loss reserve funded by the borrower's and VSBFA's enrollment premiums. This will stimulate bank lending to the smaller and medium-sized Virginia businesses by boosting the bank's reserve against losses. To keep VCAP a non-bureaucratic tool, the participating bank determines what loan to enroll without VSBFA's involvement, For a list of participating banks, contact VSBFA at (866) 248-8814 or go to VCAP.
Small Business Environmental Compliance Assistance Fund
The Virginia Department of Environmental Quality (DEQ) has entered into a cooperative agreement with the Virginia Department of Business Assistance (DBA) to develop and administer a revolving loan program. Through this program low-interest rate loans are available to small businesses for the purchase and installation of replacement equipment needed to comply with the Clean Air Act; or to implement voluntary pollution prevention measures; or for the implementation of selected voluntary agricultural best management (BMPs) practices as listed in the Virginia Agricultural BMP Manual. Contact VSBFA at (866) 248-8814 or go to Small Business Environmental Compliance Assistance Fund for more information.
Entrepreneur Training and MicroEnterprise Loan Program
An Entrepreneur Training and MicroEnterprise Loan Program is offered through THIS VALLEY WORKS and TAP. This program lasts five sessions and includes business start-up, management, marketing, planning and finances. The five sessions are available for a $12 registration fee per business. Program participants will receive technical assistance in developing business plans and financial projections. Start-up or expansion loans of up to $35,000 may be available for qualifying micro-business. Eligible businesses must be located in the Roanoke Valley-Alleghany Regional Commission Area (Alleghany, Botetourt, Craig, and Roanoke counties and the cities of Clifton Forge, Covington, Roanoke, and Salem) and the business owner(s) must qualify as low to moderate income or 51% of the employees must qualify as such. Mentoring will also be provided through the start-up or expansion. Those planning childcare facilities will have specific training sessions. For additional information, contact (540)344-7006, or go to Business Seed Capital for more information.
Virginia Economic Development Loan Fund (VEDLF)
For businesses creating new jobs or saving "at risk" jobs in Virginia, a program was set up to fill the financing gap between private lending and private equity. VEDLF can only contribute up to 40% of the project cost and the company must provide a minimum of 10% as cash equity, the maximum loan amount is $1,000,000, and one permanent, full-time job must be created or saved for each $20,000 borrowed. Companies manufacturing or exporting goods may receive the loan and the funds can be used for land and buildings, expansion or improvement of facilities, construction of new facilities, or to purchase machinery and equipment. This loan cannot be used for working capital. Contact VSBFA at (866) 248-8814 or go to VEDLF for more information.
Child Care Financing Program
To ensure child care providers meet and maintain state and local child care regulations, including health and safety requirements, the Virginia Small Business Financing Authority (VSBFA) will provide them with small direct loans. Typical loan uses include purchasing infant care equipment, equipment needed to care for children with special needs, playground or transportation equipment, and minor renovations to facilities. All loans and criteria are in cooperation with the Virginia Council on Child Day Care and Early Childhood Programs. Contact VSBFA at (866) 248-8814 or go to Child Care Financing Program for more information.
Providing Access to Capital for Entrepreneurs (P.A.C.E.)
The P.A.C.E. Program provides access to capital for disadvantaged Virginia businesses by encouraging banks to make loans that they would otherwise not make due to a borrower’s risk profile. The program is administered by the Virginia Small Business Financing Authority (VSBFA) for the Department of Minority Business Enterprise (DMBE). The P.A.C.E. program provides two financing mechanisms, the Capital Access Fund for Disadvantaged Businesses and the Loan Guaranty Fund for Disadvantaged Businesses. Contact VSBFA at (866) 248-8814 or go to P.A.C.E. for more information.
Virginia Community Reinvestment Program
The Virginia Small Business Financing Authority's Community
Reinvestment Program is designed to help existing businesses fund the
purchase of owner occupied real estate and/or capital equipment. The Virginia
Small Business Financing Authority (VSBFA) serves as the
conduit through which the Community Reinvestment Fund (CRF – a Minnesota based
501 c3) makes loans in economically disadvantaged
areas, to disadvantaged business owners, or in situations that create economic
benefit or important public impact as determined by the
VSBFA and CRF. The assets financed will be pledged as collateral for these
loans. Contact VSBFA at (866) 248-8814 or go to
Virginia Community Reinvestment Program for more information.
New Markets Tax Credits Program
The Virginia Small Business Financing Authority’s New Markets Tax
Credits Program is designed to help existing businesses fund the
purchase of real estate occupied by their companies and/or capital equipment
used in their operation. The Virginia Small Business
Financing Authority serves as the conduit though which the Community
Reinvestment Fund makes New Markets Tax Credits loans
available. Contact VSBFA at (866) 248-8814 or go to
New Markets Tax Credits Program for more information.