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The Loudoun Department of Economic Development
can be an active partner in helping your business develop and
grow. We have the knowledge and expertise to leverage a wide
range of business assistance programs that can make you a
Loudoun success story. Help is available to
businesses of all sizes, and from an array of
sources.
Loudoun's
Small
Business Development Center can help with the
preparation of business plans and the mountains of paperwork
that can sometimes overwhelm you. We know the ropes! Let us
help you get started.
The Commonwealth of Virginia
also offers financing assistance, through the Virginia Asset
Financing Corporation, and the Virginia Small Business
Financing Authority (see below). National
and State Government Financial Assistance Programs
 The Virginia Small Business Financing
Authority (VSBFA)
The Virginia
Small Business Financing Authority (VSBFA) was created in 1984
with passage of the Virginia Small Businesses Financing Act.
VSBFA's legislation is broad in terms of the types of
financial assistance that it can offer, and VSBFA continues to
develop new programs to provide businesses in the Commonwealth
with access to the financing needed for their growth and
expansion. VSBFA is staffed by the Virginia Department of
Economic Development's Small business Development Division.
For more information, contact VSBFA at 901 E. Byrd Street,
Post Office Box 798, Richmond, Virginia 23218-0798, Telephone
(804) 371-8254.
Virginia Economic Development Revolving
Loan Fund
This program provides loans of up to $700,000 to bridge the
gap between private debt financing and private equity for
projects that will result in job creation or retention.
Funding is available for fixed asset financing to new and
expanding manufacturing companies and other industries which
derive 50% or more of their sales outside of Virginia.
Virginia Defense Conversion Revolving
Loan Fund
This program provides loans of up to $700,000 to assist
defense dependent companies seeking to expand into commercial
markets and diversify their operations. Funding is available
for fixed assets and working capital.
Loan Guaranty Program
This program is designed to reduce the risk to banks in making
loans and, thereby, increase the availability of short-term
capital for small businesses. Under the program, VSBFA will
guarantee up to $250,000 or 50%, whichever is less, of a bank
loan. Typical borrowings include revolving lines of credit to
finance accounts receivable and inventory, and short-term
loans for working capital and fixed-asset purchases, such as
office or research equipment.
Virginia Capital Access Program (VCAP)
VCAP provides a form of loan portfolio insurance for
participating banks through special loan loss reserve accounts
which are funded by loan enrollment premiums paid by the
bank/borrower and matched by the Virginia Small Business
Financing Authority. This allows the banks to exceed their
normal risk thresholds for commercial loans of all types and,
thereby, accommodate a broader array of loan requests from
Virginia businesses.
Export Financing Assistance Program
VSBFA works in partnership with the Export-Import Bank of the
United States (Eximbank) and the U.S. Small Business
Administration (SBA) to provide Virginia exporters with easier
access to federal loan guarantees and export credit insurance.
VSBFA markets the full array of federal export finance
programs and packages applications for pre- and post-export
working capital financing. VSBFA also assists Virginia
exporters in obtaining export credit insurance by
administering an Eximbank Export Credit Insurance Umbrella
Policy.
Child Day Care Financing Program
In cooperation with the Virginia Council on Child Day Care and
Early Childhood Programs, VSBFA provides small direct loans to
child day care providers for quality enhancement projects or
to meet or maintain child care standards. Loan uses include
infant care equipment or equipment needed to care for children
with special needs, playground improvements, vans, and
upgrades or minor renovations to kitchens, bathrooms, and
plumbing and electrical systems.
Industrial Development Authority (IDA)
The Loudoun County Industrial Development Authority issues
both tax-exempt and taxable revenue bonds (IDBs) to provide
creditworthy businesses with access to long-term, fixed asset
financing at favorable interest rates and terms. Tax-exempt
IDBs may be used to finance new or expanding manufacturing
facilities and exempt projects, such as solid waste disposal
facilities. Additionally, VSBFA offers an Umbrella IDB Program
which provides a cost-efficient means for businesses to sell
their bonds in the public bond market, particularly for
smaller projects with limited access to this market. For more
information contact:
Loudoun
County Industrial Development Authority
703-777-3094
Small Business Administration Loan
Programs
SBA 504
Loan Guarantee Program
The SBA 504
program provides long term, fixed rate financing to small
and medium sized businesses for financing construction,
acquisition, and renovation of buildings and for purchasing
major equipment.
The program is
generally intended to assist established, profitable,
growing businesses by offering low down payment, long-term
financing at a fixed interest rate. Working capital and
refinancing are ineligible purposes.
The program is
administered in Loudoun County by Virginia Asset Financing
Corporation (VAFC). Staff of the VAFC will work closely with
the business owner to determine eligibility and assist in
the preparation of the loan application.
For further
information, contact:
Virginia
Asset Financing Corporation
4165 Chain Bridge Road
Fairfax, VA 22030
703-352-0504 (tel)
703-352-9100 (fax)
SBA 7A Loan Guarantee Program
The SBA 7A program guarantees loans made by commercial lenders
to small businesses. Loans can be used for business or
property acquisition, expansion, equipment purchase, working
capital and debt consolidation. Under CAPlines, participating
lenders extend a revolving line of credit for up to 5 years,
SBA provides a guarantee of up to 75% or $750,000 whichever is
less, on credit lines that can exceed one million dollars.
SBA's Microloan Program
Under this program, loans range from less than $100 to a
maximum of $25,000, averaging about $10,000.
Other SBA Loan Programs
The SBA operates numerous loan guarantee programs to assist
specific groups, including:
- small general contractor
loan guarantee
- seasonal line of credit
guarantee
- contract line of credit
- export revolving line of
credit
- international trade loan
program
- pollution control
financing
- surety bonds for small
contractors
Other specialized loan
programs are being developed and special provisions govern
eligibility for each. For further information contact the U.S.
Small Business Administration directly or through the
Washington District Office, or the Small Business Answer Desk
at 1-800-8-ASK-SBA or (202)205-7064 FAX.
Small Business Investment Companies (SBIC)
SBIC's provide equity capital and subordinated loans to small
businesses. SBIC's are privately owned and capitalized
companies that are licensed and regulated by the U.S. Small
Business Administration. SBIC's invest in small businesses
according to their own investment criteria.
A specialized type of SBIC is
the "Section 301(d) SBIC" (Minority Enterprise SBIC)
which restricts its funding to businesses owned or operated by
socially or economically disadvantaged persons. Women-owned
and Vietnam veteran-owned firms may qualify. A MESBIC can also
provide management assistance to companies that it finances.
The definition of who
qualifies as a minority person may differ among programs and
governments in regard to race, gender, nationality or income
level.
Virginia Department
of Minority Business Enterprise
(DMBE) The Virginia DMBE works with minority firms to
increase contracting opportunities for minority businesses
in both the public and private sector, with emphasis on the
state government. DMBE maintains a statewide databank of
minority-owned firms. The agency will help minority firms
register as a vendor with Virginia, federal and local
agencies, including certification and pre-qualification with
the Virginia Department of Transportation.
For more information
contact:
Department of
Minority Business Enterprise
200-202 N. 9th Street, 11th Floor
Richmond, VA 23219
(804)786-5560
Virginia Regional Minority Supplier
Development Council
VRMSDC is a non-profit organization working to increase
marketing opportunities for minority vendors. Services include
vendor identification and certification, directories, training
programs and buyer/seller liaison. For more information:
Virginia Regional
Minority Supplier Development Council
201 E. Franklin Street
Richmond, VA 23219
(804)780-2322
Minority Enterprise Small Business
Investment Companies (MESBICs)
See "Small Business Investment Companies" above in
the section on government Financial Assistance Programs for
financing information on MESBICs.
SBA 8(a) and 7(j) Programs
Businesses owned by "socially and economically
disadvantaged persons" can take advantage of two programs
managed by the U.S. Small Business Administration: the 8(a)
Procurement Program and the 7(j) Management and Technical
Assistance Program.
The Section 8(a) program
assists minority businesses to compete for contracts offered
by federal agencies. Under the law federal agencies are
required to procure a certain amount of goods and services
from "disadvantaged" businesses. Small Business
Administration certifies firms for the 8(a) program,
negotiates and awards contracts to the firms, and provides
management assistance.
The Management and Technical
Assistance 7(j) program offers a range of assistance to 8(a)
and non-8(a) firms who meet certain qualifications such as a
business owned by a low income person. For further information
contact:
U.S. Small Business
Administration
Washington District Office
111 18th Street, NW
Washington, DC. 20416
(202) 634-1500
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