Small Business Loan Programs

Direct Loan Programs that Can Help Small Businesses Thrive

Access to capital can be one of the biggest challenges facing small businesses, especially during periods of growth, expansion, or transition. Through the Virginia Small Business Financing Authority (VSBFA), the Virginia Department of Small Business and Supplier Diversity (SBSD) offers financing programs designed to help eligible Virginia businesses secure the funding they need to move forward with confidence.

 

VSBFA loan programs can support businesses in a variety of ways. Some of these programs provide direct financing opportunities for businesses that may not qualify for traditional lending alone, while other programs work alongside commercial lenders by helping bridge financing gaps, reducing collateral shortfalls, or supporting transactions that may otherwise fall outside conventional underwriting standards.

 

Whether your business is launching, expanding operations, investing in equipment, creating jobs, or pursuing new opportunities, VSBFA financing programs are designed to help Virginia small businesses access the capital needed to grow and thrive.

Explore Our Loan Programs:

Microloan Program

This is a direct loan from the VSBFA to the business client that does not require a bank’s participation in the transaction.

See Forms & Requirements

Child Care Financing Program

This program is focused on helping qualifying child care providers improve the health, safety, welfare, and education of the children in their care through specific uses of funds.

See Forms & Requirements

Economic Development Loan

This is a companion loan for fixed-asset financing needs designed to fill the financing gap between the bank’s loan and private equity.

See Forms & Requirements

Capital Connect Program - SSBCI 2.0

This is a loan participation program that offers direct loans alongside companion small business loans originated by lenders.

See Forms & Requirements

Loan Program Documents and Resources:

Please review all Microloan Program documents carefully before applying to ensure you understand eligibility requirements, application materials, and program guidelines. If you have questions or need assistance determining whether this program is the right fit for your business, please contact VSBFA for guidance.

Step #1: Ensure Your Eligibility

 
To begin, make sure you:

  • Are currently operating a business in Virginia
  • Are in good standing with the State Corporation Commission
  • Have a credit score of 650 or higher

 


Businesses must also meet at least one of the following criteria:

  • Have $10M or less in annual revenue over each of the last three years
  • Have a net worth of $2M or less
  • Have fewer than 250 employees

 

Step #2: Determine How You Will Use The Funds
 

Microloan Program funds may be used for:

  • Business acquisition
  • Equipment and fixed asset purchases
  • Working capital

 

(Some restrictions may apply)


Funds may NOT be used to:

  • Finance construction
  • Finance non-owner occupied real estate investments
  • Refinance debt

 

Step #3: Review Program Loan Amounts and Terms

  • Loan amounts up to $150,000 for qualifying applicants
  • Repayment terms vary, but range from 5-7 years
  • Monthly payments must be made by automatic withdrawal from the Borrower’s bank account

 

Step #4: Apply For Funding

Funding is provided by The Virginia Small Business Financing Authority (VSFBA). There is a one-time, non-refundable application fee of $150.

Microloan Application
Personal Financial Statement
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