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Virginia Small Business Financing Authority

 

The Virginia Small Business Financing Authority (VSBFA) is the Commonwealth of Virginia’s economic development
and business financing arm. We help banks make loans to businesses that can demonstrate repayment ability, but
where the bank needs additional collateral support or a more robust secondary repayment source by providing:
  • cash collateral
  • subordinate companion loans
  • guaranties
  • loan loss reserves

Throughout our history we have helped many of Virginia’s banks increase their commercial loan portfolios while reducing their credit risk. If you have a loan request that needs a bit more help, VSBFA is happy to talk with you about your client’s credit needs. Send us an e-mail or give us a call today.

For VSBFA Staff contact information, click here.                            For the VSBFA Board of Directors Listing, click here.

 SSBCI Cash Collateral Program

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. Can be used for lines of credit or term loans. Through 2016, the VSBFA is not charging a collateral support fee for this program. To learn more, click here.

Economic Development Loan Fund

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 businesses temporary cash flow needs. To learn more, click here.

Loan Guaranty Program

This is a traditional deficiency guaranty of a bank loan. It can be used for lines of credit or term loans any time the bank believes it needs additional support in order to approve a business loan request. To learn more, click here.

SSBCI Capital Access Program

This program provides loan loss insurance to a bank to cover a portfolio of enrolled loans. It is designed to be a quick, efficient means of obtaining a credit enhancement from the VSBFA. Under most circumstances, the bank determines whether or not a loan will be enrolled in the program without VSBFA’s involvement. To learn more, click here.

SWaM Business Loan Fund

This 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. To learn more, click here.

Child Care Financing Program

This is a direct loan from the VSBFA to a child care center or a family home provider. Bank participation is not required, though often times the bank will provide financing for the center’s land and building and the VSBFA can provide a loan for the other necessary items the center needs such as cots, fencing, playground equipment, buses, etc. To learn more, click here.

 

Private Activity Bond Issuances for Qualifying Manufacturers & 501(c) (3) Non-Profits

For those manufacturers and 501 (c) (3) non-profits which qualify for tax-exempt financing. Business owners who are unsure as to whether their business and their financing need qualify for tax-exempt bond financing should contact a qualified bond attorney before applying. Most local economic and industrial development authorities can issue bonds as well.  To learn more, click here.

 

For the VSBFA Board Meeting Minutes and Meeting Dates, click here.

 

To visit the VSBFA – Virginia Bankers Association Partner Website, please click here.