Financing Programs
Business Information Services
Virginia Business One Stop is an interactive portal designed to accelerate business formation and provide information for existing businesses. The online registration system will walk a potential business owner through each step needed to establish their new business. In addition, BOS helps existing businesses expand. The tool streamlines business-registration paperwork across seven agencies.
Center for Innovative Technology
CIT helps grow Virginia's technology industry. Its CIT Entrepreneur program provides up to $100,000 in funding for promising high-growth technology companies and helps owners identify potential equity investors.
Contact
Center for Innovative Technology
2214 Rock Hill Road, Suite 600
Herndon, VA 20170-4228
(703) 689-3000
www.cit.org
Virginia Small Business Financing Authority (VSBFA)
VSBFA “Small Business” Definition
- Must be operating in Virginia, and licensed/good standing with SCC, local, or other licensing authority
- Meet ONE of the following: Under $10M annual revenues or under $2 million tangible net worth or have less than 250 Virginia employees (some programs also require less than 750 total employees), or be a 501c3.
All real estate loans are “owner occupied commercial real estate.” No investment or residential.
VSBFA Direct Loan Programs
VSBFA makes a loan directly to Borrower typically either subordinate to the bank or secured by separate assets. Borrower applies directly to VSBFA which underwrites, closes, and manages the credit. For all VSBFA Loans:
- Response time once VSBFA has received all required information: 1 week if VSBFA exposure is no more than $500,000 approximately 1 month if VSBFA exposure exceeds $500,000
- Existing companies must have history of profitable operations and satisfactory debt payment.
- Startups must have business plans and projections.
- VSBFA requires guarantees and pledge of all available business and personal collateral.
- Minimum 10% cash equity expected for startups, more for existing businesses.
- VSBFA programs cannot be used to compensate for fundamental business weakness.
- No prepayment fees or closing costs aside from direct transaction costs.
Loan Types
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Economic Development Loan
Maximum 40% of total project cost not to exceed $500,000
For real estate and improvements, furniture/fixtures/equipment, permanent working capital
$500 application fee, recent fixed rate 4%
Start up or existing business
Focus on acceptable job creation/retention relative to loan amount -
Micro-loan
Maximum $10,000 -25,000
48 month repayment
$100 fee, 6.25% fixed rate
Any business purpose other than investment real estate
Must have been operational at least 2 years
Owners’ credit scores must be at least 650 each -
Child Care Loan
Maximum $150,000 per location for centers, $10,000 for home based providers
60 month repayment
Borrower must be licensed and in good standing with Virginia Department of Social Services.
Funds materials, equipment, supplies, playground, mini-buses, fencing
$100 application fee, 4% fixed rate -
Bank Credit Support Programs
Bank underwrites/commits to loan subject to VSBFA involvement.
-
Cash Collateral
VSBFA pledges cash collateral to the bank to help back a business loan
Maximum $500,000 or 40% of the loan amount, whichever is less.
Maximum involvement—5 years for term loans, 3 years for credit lines
Cost $200 application fee
Loan Guaranty-VSBFA provides an additional guaranty to the bank
Maximum 75% of the loan amount or $750,000, whichever is less
Maximum involvement-7 years for term loans, 5 years for credit lines
Cost $200 application fee, 1.5% of the guaranteed amount due at closing -
Loan Participation
VSBFA buys a portion of a bank loan
Maximum $500,000 or 40% of the loan amount, whichever is less.
Maximum hold period 10 years
$500 application fee, VSBFA receives same interest rate as Bank
Contact
Mary Jo Sisson-Vaughan,
Regional Lending Manager, Virginia Small Business Loan Programs
Hampton Roads, Southern VA, Central VA Areas
(804)
371-8184