Industrial Development Bond (IDB) Program
Creditworthy companies seeking to finance the acquisition, construction and equipping of industrial and commercial facilities can obtain long-term financing at favorable interest rates and terms through the Virginia Small Business Financing Authority's (VSBFA) Industrial Development Bond Programs (PDF). Taxable and Tax-Exempt Industrial Development Bonds are available to assist borrowers with securing favorable interest rates through this program, which are often more attractive than found through conventional financing.
Economic Development Loan Fund
The Virginia Small Business Financing Authority's Economic Development Loan Fund (PDF) is a companion loan for fixed asset financing needs designed to fill the financing gap between the bank's loan and private equity. In these transactions, the business client has two loans, one from the bank and one from the VSBFA. Where warranted, the VSBFA will consider being in a subordinate position to the bank and can sometimes offer more flexible terms in order to help the business' temporary cash flow needs.
SWaM Business Loan Fund
The SWaM Business Loan Fund (PDF) is a direct loan from the VSBFA to the business client that does not require a bank's participation in the transaction. It is an ideal tool for bankers who are faced with business loan requests for very small amounts where the bank would prefer to refer the client to an alternative source of funds.
State Small Business Credit Initiative (SSBCI) Cash Collateral Program
The SSBCI Cash Collateral Program (PDF) most typically used in those situations where the business loan applicant has the demonstrated ability to cash flow the debt, but the collateral coverage is insufficient for the bank's normal underwriting standards. This program can be used for lines of credit or term loans.
Loan Guaranty Program
The Virginia Small Business Financing Authority's Loan Guaranty Program (PDF) is designed to help Virginia's small businesses obtain the funds to start, enhance, or expand their operations and thereby creates new jobs for citizens of the Commonwealth. The VSBFA guaranty reduces the bank's credit risk and helps the business qualify for financing that would not otherwise be available.
Capital Access Program
The Virginia Small Business Financing Authority's Capital Access Program (CAP) (PDF) provides access to capital for Virginia businesses by helping banks in Virginia to make loans to businesses that may have difficulty obtaining a conventional loan without a credit enhancement. Unlike typical government guaranty programs, which provide a guaranty of a specific loan, CAP utilizes an insurance concept on a portfolio of loans. VSBFA establishes a loan loss reserve at each participating bank, which is funded by enrollment fees paid by the Borrower/Bank and matching fees paid by the VSBFA. Because the participating bank determines what loans to enroll without VSBFA's involvement, CAP is a flexible, non-bureaucratic tool to assist banks in meeting the financing needs of Virginia's businesses.
Environmental Compliance Assistance Fund
The Environmental Compliance Assistance Fund is a direct loan from the VSBFA to a business that seeks to finance equipment that will have quantifiably less impact on the environment or the business is seeking to implement voluntary agricultural best management practices (BMPs) . Bank participation is not required.
Business Seed Capital, Incorporated Program
The Business Seed Capital, Incorporated Program is a micro-enterprise development program. This program offers educational classes to entrepreneurs focusing on how to start and manage a small business as well as individual technical assistance. The three primary services include:
- One-on-one counseling
- Small business classes
- Small business financing
The small business classes cover the full spectrum of small business start-up and management issues for entrepreneurs. One-on-one counseling provides clients with specific knowledge pertaining to their particular business issues. Accounting classes are available to equip clients with the needed skills to run a business. Individual technical assistance for new and experienced small business owners is also available.
Economic Development Loan Fund (EDLF)
The Virginia Economic Development Loan Fund (PDF) was established to facilitate capital investment in eligible Virginia communities (as established by the Economic Development Administration) by providing qualifying borrowers direct loans which fill the gap needed to meet equity or conventional financing. The Virginia Small Business Financing Authority can finance up to 40% of the project cost or a maximum of $1,000,000.
Child Care Financing Program
The Virginia Small Business Financing Authority's Child Care Financing Program (CCFP) (PDF) is designed to assist Virginia child care providers in obtaining financing for fixed asset needs and educational materials. The Virginia Small Business Financing Authority offers direct low-interest rate loans to regulated child care providers for quality enhancement projects or to meet or maintain childcare standards.
Virginia is for Entrepreneurs
Virginia is for Entrepreneurs connects entrepreneurs seeking financing with investors looking for opportunities and support resources for entrepreneurs.