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
The Small Business Investment Grant Fund program (SBIG) is designed to encourage Virginia financial investors to contribute investment capital to support Virginia small business growth and expansion.
SBIG grants are awarded and paid to qualified investors for their investments into small businesses. SBIG grants are not paid to the small business.
There are two applications: One for the small business and one for the investor.
A Virginia small business must apply and be approved as an eligible small business. And a Virginia investor that has made a qualified investment into an eligible small business must make application separately.
Applications are available in the link below. For the Fiscal Year 2021, both the business and investor(s) can submit applications simultaneously.
Due to COVID 19, please expect delays in processing and approvals of these applications.
We appreciate your patience as our staff is working remotely.
- VSBFA will acknowledge receipt of applications. This notification may take up to 10 business days.
- It is highly recommended that applications be electronically submitted due to potential delays in physical mail delivery.
- VSBFA will begin review of FY21 applications after August 17, 2020. After this time, VSBFA will contact applicants with any questions.
- Approval notifications will begin after August 31, 2020, with disbursements of the grant awards following within 30 to 60 days.
- VSBFA establishes the “Application Period” which generally runs 30 to 45 days and is communicated via the website. VSBFA may extend or re-open an application period if, after a review unallocated money remains in the Fund.
Grants are awarded in the order of receipt, on a first come-first serve basis,
according to the date an application is deemed complete at the sole discretion of the VSBFA.
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.
Direct Loan Programs
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 business’ temporary cash flow needs.
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.
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
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. This program can be used for lines of credit or term loans.
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.
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.
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.