The Virginia Small Business Financing Authority (VSBFA) is the Commonwealth of Virginia’s business and economic development financing arm. Aligned within Virginia’s Department of Small Business and Supplier Diversity, the VSBFA offers programs to provide businesses, not-for-profits, and economic development authorities with the financing needed for economic growth and expansion throughout the Commonwealth. To accomplish this goal, we offer loans directly to businesses & non-profits, credit enhancements to banks that are lending to businesses & non-profits, as well as bond financings to benefit for-profit businesses, 501 (c) (3) not-for-profit entities, and to support clean energy and P3 transportation projects. We also help small businesses seeking to attract equity investments by providing an equity incentive grant program.
Throughout our 30 plus-year history we have helped many Virginia businesses gain the access to the capital they needed to grow and create jobs in the Commonwealth. Whether you own a business that is seeking a loan or you are a commercial lender needing help in offering a loan to a small business the VSBFA is happy to talk with you about your needs. Send us an e-mail or give us a call today.
You may contact us through our VSBFA main number at: 804-786-1049 or contact any of the following VSBFA lenders directly. Just click on the staff directory below.
Small Business Investment Grant Fund (SBIG)
THE SBIG PROGRAM IS CLOSED FOR FY2023
The Fiscal Year 2023 application period for the Small Business Investment Grant program is closed and funds have exhausted.
If you previously submitted a FY2023 SBIG application through DocuSign, you should receive an update by email to advise the status of your application.
Please continue to check our website for updates on the Small Business Grant Program for FY2024.
The SBIG program provides a meaningful return on investment from the Commonwealth to encourage individuals or special purpose entities (created for the purpose of investing in small businesses) to make cash investments in small businesses for working capital, growth, and expansion.
SBIG grants are awarded and paid to eligible Investors that have invested in Virginia’s eligible small businesses. They are not grants for the small business that received the investment.
Investor’s applications require the Commonwealth of Virginia Substitute W-9 Form.
Please note there are several versions of a W-9 form. The State of Virginia requires the Virginia version below. This is an electronically fillable form, however, the State also requires an original signature. You will need to print the document and manually sign. The form can then be scanned and be submitted electronically with the application package.
Programs
Direct Loan Programs
Economic Development Loan for Small Businesses
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.
Microloan for Small Businesses
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.
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.
Credit Enhancement Programs
VSBFA SSBCI 2.0
PROGRAM OVERVIEW INTRODUCTION
On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021, which provided $10 billion to fund the State Small Business Credit Initiative SSBCI. Through SSBCI 2.0, Treasury will provide funds to states, the District of Columbia, territories, and Tribal governments for small business credit support and investment programs.
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.
Bond Programs
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.
