​​​​​​Frequently Asked Questions​

  • What services does the Virginia Beach Department of Economic Development (VBDED) provide?
    ​Virginia Beach Economic Development assists the business community by providing management, technical, and other resources. Through our department, and our allies, various programs are available for small and startup firms, as well as for women-and minority-owned companies of any size.

    Some of the VBDED services include:
    • Site Selection
    • Advocacy Services
    • Market Information​
    • Financial Guidance
    • Business Assistance
    • Minority Business Council
    • Workforce Development Services
    The services are free of charge, and the business inquiries remain strictly confidential.

  • Why should I locate my business in Virginia Beach?
  • How do I start a business?
    ​Starting a business is fairly easy and inexpensive, but requires a major commitment of time and resources.  If you are an entrepreneur beginning a new business “from scratch” there are many issues to address, including: completing a business plan, creating a budget, identifying financing opportunities, conducting market research, protecting yourself and the company legally. The Small Business Development Center of Hampton Roads (www.hrsbdc.org) offers numerous resources to help get your business started.

    If yours is an existing business and you’re considering opening a new facility in Virginia Beach, you need to ensure you obtain the proper business license.  For more information, click here.

  • What are the costs of doing business in Virginia Beach?

    Together, the Commonwealth of Virginia and the City of Virginia Beach have one of the fairest tax structures in the United States:

    • Only one local taxing authority (in Virginia, businesses and residents reside in and pay taxes to either a county or a city, not both)
    • State corporate income tax rate of 6% has not changed since 1972
    • Unemployment and Workers’ Compensation Insurance rates are among the lowest in the US
    • Local business taxes are limited, and include real property tax, business property, and business license fees (gross receipts tax)
    • Sales & Use tax is assessed at the state level only, and manufacturers are exempt from paying tax on purchases used for production; distributors do not pay tax on items purchased for resale

    Additionally, Virginia traditionally has one of the lowest industrial electricity rates on the East Coast, as well as low natural gas costs.

    According to a 2012 study published by the Building Owners and Management Association, Virginia Beach is among the 5 least-expensive commercial real estate markets in the US.

    For more information, click here.

  • Can I operate a business out of my home?
    ​Yes. Home-based businesses require a business license and must provide proof of residency and complete the Restrictions for Home Use form. If you are locating near NAS Oceana, please read the notice, "New Businesses Locating near NAS Oceana". For more details, click here. 

  • Are there shared office or executive spaces in the City?
    ​Yes. Executive /Shared Office packages provide you with fully equipped, customizable office space fitted with the latest technology, and ready to accommodate all your business needs for a fraction of the cost of the traditional office space. These offices are suitable especially for small and/or international companies.  For more specifics, click here. 

  • How do I recruit staff for my business?
    ​Virginia Beach and its surrounding MSA provide businesses access to a highly skilled, dynamic workforce that is augmented each year by an average of 12,000 local exiting military members, and 16,000 graduating college students; approximately 90% of all adults in the region have at least a high school degree (compared to 86.3% nationally).

    Employers have access to a variety of recruiting resources to access this workforce, including: Virginia Employment Commission; Opportunity Inc (local workforce investment board); and the Virginia Jobs Investment Program. There are also numerous high quality private staffing and employment services firms able to assist.

    Contact Jerry Stewart (jwstewar@vbgov.com), Virginia Beach Department of Economic Development Workforce Development Coordinator, for additional information.

  • Where are businesses located in Virginia Beach?
    ​Virginia Beach has nine major business districts, each with a distinct character and industry base, as well as 10 business parks. Some districts are heavily populated, making them ideal for corporate and retail clusters. Others are located where major transportation corridors converge, providing an ideal location for industrial development.

  • Virginia Beach has nine major business districts, each with a distinct character and industry base, as well as 10 business parks. Some districts are heavily populated, making them ideal for corporate and retail clusters.
    ​Virginia Beach has a diverse business base which includes major corporate headquarters, large international manufacturers, numerous defense contractors, and a growing, innovative small business sector. Access​ our business directory.
  • Are there special assessment districts?
    ​​

    Yes. Virginia Beach has created special service districts (SSD) that include higher real estate tax rates in order to help pay for specific projects and/or programs:

    Special Service District (SSD) Tax Rates per $100.00 of assessed value

    GENERAL$1.0025
    Sandbridge SSD$1.0625
    Central Business District South SSD $1.4525
    Old Donation Creek SSD$1.1865        
    Bayville Creek SSD$1.4745
    Shadowlawn SSD$1.1619
    Chesopeian Colony SSD$1.2938
    Harbour Point SSD$1.0815
    Gills Cove SSD$1.0655
    Hurds Cove SSD$1.4405

  • Who are the largest employers in Virginia Beach?
    Access​ our list of major employers. The list excludes public sector and retail entities. Also, the "Type of Business" description is based on the North American Industry Classification System (NAICS) code.

  • Does the City offer any assistance for new businesses?

    ​Numerous forms of assistance for new and existing Virginia Beach businesses, depending on their individual needs. For start-ups and small business entrepreneurs, the City has an active Small, Woman- and Minority-Owned Business program that works closely with the US Small Business Administration (SBA), the Virginia Department of Minority Business Enterprise, the Service Corps of Retired Executives (SCORE), and many local financial and legal resources to provide targeted assistance.

    Additionally, the Virginia Beach Development Authority administers its Economic Development Investment Program​ (EDIP), which provides local grants to qualifying business that are locating to or expanding in the City of Virginia Beach; this discretionary grant was created to support economic development projects creating new jobs and capital investment in the City.

    Businesses locating in an APZ-1 Special Incentives District have access to an enhanced discretionary EDIP grant program, in addition to several entitled incentives.  Learn m​ore.

    The City has also created a business license fee incentive for new companies locating in Virginia Beach, which has established a $50 per year cap for each of the first two years a company operates in Virginia Beach (manufacturers are exempt from paying any business license fee).

    Certain projects may also be eligible for assistance from the Commonwealth of Virginia​.​

    The Virginia Beach Development Authority also has the ability to induce the issuance of industrial revenue bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities. Since these bonds are tax-exempt, the interest rates offered are significantly lower than traditional forms of financing. 

  • Where can small businesses and new business startups get business counseling?

    ​One of every three new companies opening in the entire Virginia Beach MSA is located in the City of Virginia Beach, and for good reason. Companies and entrepreneurs in Virginia Beach have access to a wide variety of programs designed to expand investment and job creation opportunities, starting with the Virginia Beach Department of Economic Development, which has a business development manager specifically responsible for assisting small business.

    Additional free counseling resources include:

    • Service Corps of Retired Executives
    • SCORE Veteran Fast Launch
    • Small Business Development Center of Hampton Roads
    • Opportunity Inc.
    • Virginia Employment Commission
    • Virginia Department of Business Assistance
    • Virginia Department of Minority Business Enterprise
    • University Programs (Old Dominion University Business Gateway, Regent University Center for Entrepreneurship, Norfolk State University RISE Center, Hampton University Center for Entrepreneurial Study, College of William & Mary Technology & Business Center, Tidewater Community College)
    • Entrepreneurs’ Organization Southeast Virginia

    For more information, contact Virginia Beach Department of Economic Development.

  • Where can I get local demographics, economic statistics and market research?
    ​Visit this page or contact the VBDED if you need assistance with research-related information, demographics, business statistics, or market research.

  • What are the primary business industries in Virginia Beach?
    ​Virginia Beach's business base is comprised of ten industries or target sectors: manufacturing, professional services, defense, retail, bio/life sciences, technology, maritime/logistics, SWAM, international focus, and tourism. To learn more, click here. ​

  • How is green and sustainable development encouraged by the Department of Economic Development?

    • The Commonwealth of Virginia Green Job Creation Tax Credit awards an annual tax credit of $500 for each salary that is $50,000 or more for up to 350 “green jobs”. The credit is allowed in the first taxable year after the job has been filled for at least one year and in each of the four succeeding years. Green jobs are related to the field of renewable, alternative energy.
    • The Commonwealth also has a Recycling Equipment Tax Credit incentive available to manufacturers for the purchase of certified machinery and equipment used for processing recyclable materials in taxable years before January 1, 2015, equal to 10% of the total original capitalized cost of the equipment.
    • The Virginia Governor’s Agriculture and Forestry Industries Development Fund provides discretionary strategic grants to businesses adding value to Virginia-grown agricultural and forestall products.
    • The Virginia Clean Energy Manufacturing Incentive Grant program offers discretionary grants to eligible companies engaged in the manufacture of equipment, systems or products used to produce clean energy, or for products used for energy conservation, storage or grid efficiency purposes.
    • The City of Virginia Beach has established a real estate tax rate for certified energy-efficient buildings of $0.85 per $100 of assessed value, which is $0.15 lower than the City’s normal real estate tax rate.

  • What is a Foreign Trade Zone and are there any in Virginia Beach?
    ​Foreign Trade Zones are areas which are geographically inside the U.S., but are legally considered outside its customs territory. Companies that locate in FTZs can benefit by using special procedures to encourage U.S. activity by reducing, eliminating or delaying duties. 

  • Are there Historically Underutilized Business (HUBZone) areas in the City of Virginia Beach?
    ​Yes. Locate ​the HUBZones in Virginia Beach.

  • How can I stay connected with the economic development activities in Virginia Beach?
    ​Visit these pages for updated n​ews or news releases, subscribe to our eNewsletter, or like us on our social media channels.

  • How can I find out more about expanding or relocating in Virginia Beach?
    ​The Department of Economic Development is eager to assist new business, and existing industry, in maximizing their economic potential by providing management, technical, market research, demographics, and other resources. For more specifics, click here.