NewVA Capital Partners, LP

A consortium of health care- and education-led interests has pledged $55 million to back high impact businesses in the Roanoke and New River valleys. The purpose of this fund is to grow local companies and bring new companies to the region to stimulate job growth and the economy. Backing requires an equity interest in the firm. Contact Larry Hincker of the Virginia Tech Foundation at (540) 231-5396 or Eric Earnhart of Carilion Clinic at (540) 224-4966 for more information. If you wish to submit your business plan for consideration, e-mail or mail it to Third Security LLC, The Governor Tyler, 1881 Grove Ave, Radford, VA 24141.

Southwest Virginia Community Development Fund (SWVCDF)

This program uses grants from the Economic Development Administration and local governments to make loans to small businesses in the downtown area, northwest city, parts of northeast city, and all industrial parks. Businesses must first have 10-15% equity. Minimum loan amount is $50,000; maximum is $400,000. The SWVCDF puts up 25% of the loan amount, the locality puts up 1/3 of the amount allocated by SWVCDF, and banks, or other entities, contribute twice the total amount from the SWVCDF and locality combined. For every $10,000 loaned by the SWVCDF and locality, one job must be created, and over half of the jobs created must go to low to moderate income individuals. Contact Stan Hale at (540) 344-6624.

Virginia Capital

A private, for-profit, venture capital firm, Virginia Capital makes investments in profitable companies with revenues between $5 and $30 million. This capital is provided in three areas: growth capital to expand existing businesses, acquisition capital to finance management buyouts and equity capital for leveraged recapitalizations. Typical investments range between $1 and $5 million per company. Virginia Capital's industry preferences are healthcare services, communications products or services, small market media, and publishing. Investments are generally not made in retail, real estate, financial services or natural resource related businesses. Virginia Capital does not invest in start-ups, early stage or turn-around situations. Contact Tom Dearforff or Justin Marriott at (804) 648-4802 or fax at (804) 648-4809.

Virginia Economic Development Loan Fund (VEDLF)

This program was recently changed to allow more flexibility in filling the gap between private debt financing and equity. Funds can be used for manufacturing projects, the purchase of real estate by Industrial Development Authorities (IDA), attracting tourism dollars from outside Virginia, technology infrastructure, tenant improvements, and, in limited circumstances, permanent working capital. The amount allowed for each newly created or retained job with a minimum wage of $8 per hour is $35,000, with a $1 million cap per project. This cap has been loosened when lending to an IDA. A maximum of 40% of the project cost can be financed from VEDLF, and the company must contribute cash equity of at least 10%. There is a $500 application fee. Contact the Virginia Small Business Financing Authority at (866) 248-8814.

Growth Acceleration Program (GAP)

Virginia's Center for Innovative Technology (CIT)'s GAP helps close the funding gap between early-stage equity investment and personal funds for Virginia-based technology companies. CIT identifies and makes funds available to seed-stage technology firms with a high potential for commercialization, rapid growth and downstream private-equity financing. To qualify, the applicant must have headquarters and a significant portion of operations in Virginia or relocate to Virginia; be involved in IT, communications, biotechnology, nanotechnology, materials or sensors; have a high potential prospect for commercialization and follow-on funding; have a complete business plan; and provide evidence of a one-to-one match for requested GAP funding. Up to $100,000 may be invested with an entrepreneurial consulting program available for participants. For additional assistance, contact Jen O'Daniel at (703) 689-3029.

Small Business Environmental Compliance Assistance Fund

The Virginia Department of Environmental Quality and the Virginia Department of Business Assistance (DBA) have joined together to offer low-interest rate loans to small businesses for the purchase and installation of replacement equipment needed to comply with the Clean Air Act; or to implement voluntary pollution prevention measures; or for the implementation of selected voluntary agricultural best management practices. Loans may not be used to comply with an enforcement action by Virginia Department of Environmental Quality, the State Air Pollution Control Board, the State Water Control Board, the Virginia Waste Management Board, or the Department of Agriculture and Consumer Services. Interest rates on these loans are low, with a maximum loan amount of $100,000. There is an application fee of $30. Contact the Virginia Small Business Financing Authority at (866) 248-8814.

Child Day Care Financing Program

In cooperation with the Virginia Council on Child Day Care and Early Childhood Programs, the Virginia Small Business Financing Authority provides small direct loans to child day care providers to meet and maintain state and local child care regulations, including health and safety requirements. Examples of loan uses include purchasing infant care equipment, equipment needed to care for children with special needs, and minor renovations to facilities. The maximum loan amount is $50,000. Contact the Virginia Small Business Financing Authority at (866) 248-8814.

Loan Guaranty Program

The Virginia Small Business Financing Authority (VSBFA) administers this program designed to assist companies in obtaining short-term capital or a term loan with a maximum term of five years. The program guarantees up to 75% to the commercial bank providing the funding with a maximum loan guaranty of $500,000. Eligible borrowers must meet the criteria of a "small business". The guaranty fee is 1.5% and the non-refundable application fee is $200. Contact your bank, who will determine if the Loan Guaranty is needed.

Tax-Exempt Industrial Development Bond (IDB) Program

The Virginia Small Business Financing Authority can offer long-term industrial development bonds up to $10,000,000 for acquisition, construction, and equipping of manufacturing facilities. To qualify, businesses must meet one of the following Virginia Small Business Financing Authority definitions of a small business: less than $10,000,000 in annual sales, less than $2,000,000 in net worth, or fewer than 250 employees. The interest rate is below prime. Since interest earned on IDBs is exempt from federal and state income taxes, IDBs provide lower interest rates than conventional financing. The maturity of the bonds cannot exceed 120% of the average economic life of the assets financed. Funds may not be used to refinance existing debt or working capital. Call Virginia Small Business Financing Authority at (866) 248-8814.

Umbrella Bond Program

The Virginia Small Business Financing Authority (VSBFA) can provide a cost-effective means for firms to access the tax-exempt bond market. Through this program, IDB projects are brought under an umbrella of standard documentation and uniform credit enhancement, enabling a public offering to see the bonds. To qualify, businesses must meet one of the following VSBFA definitions of a small business: less than $10,000,000 in annual sales, less than $2,000,000 in net worth, or fewer than 250 employees. Eligible uses for the funds include acquisition, construction, and equipping of manufacturing facilities. Funds may not be used to refinance existing debt or for working capital. Contact Virginia Small Business Financing Authority at (866) 248-8814.

Taxable Industrial Development Bond (IDB) Program

The Virginia Small Business Financing Authority provides economic development financing to Virginia businesses by creating access to the public taxable bond market. This program provides long-term, fixed asset financing through the issuance of taxable bonds, exempt from Virginia state income tax. The funds can be used for acquisition, construction and equipping of commercial and industrial facilities. The facility being financed should be occupied by a business providing goods or services and be owned, or managed by, the applicant. Contact the Virginia Small Business Financing Authority at (866) 248-8814.

Rental Rehabilitation Program

This program provides below market rate financing for the repair of existing rental properties located in a Roanoke Conservation Area, Rehabilitation District, or Enterprise Zone. Prior to rehabilitation, each unit must be in substandard condition according to Volume 2 standards of the Uniform State Building Code, and all violations must be corrected. For five years, tenant incomes and rents may not exceed program limits set, and adjusted annually, by the US Department of Housing and Urban Development. The maximum loan amount is $14,999 per unit, with the financing consisting of a 5% interest loan with a maximum 15 year term. The total debt secured against the property, from all sources, may not exceed 90% of the appraised after-rehab value. Contact Briggitt Harris, Roanoke Redevelopment and Housing Authority, at (540) 983-9265.

Business Seed Capital, Inc.

Business Seed Capital, Inc. offers loans of up to $25,000 for qualifying microbusiness start-ups or expansions. To be eligible, the business must be located in the Roanoke Valley Alleghany Regional Commission, (, , Craig County, , , , Roanoke and ), with the business owner(s) qualifying as low to moderate income or 51% of the employees qualifying as such. In addition to technical assistance, mentoring is provided throughout the start-up or expansion. For additional information, contact (540) 344-7006.

Small Business Administration 504 Loans

This program is designed to achieve community economic development through job creation and retention, by providing long-term, fixed asset financing to small businesses. The proceeds may be used for assisting small businesses with fixed asset financing, plant acquisition, construction, renovation, expansion, acquisition of land, land and site improvements, acquisition and installation of machinery and equipment, interest on interim financing, and professional fees directly attributable, and essential to, the project. Contact the Business Finance Group at (703) 352-0504.

SBAExpress

SBAExpress makes loans up to $350,000 available through SBA lenders. These lenders are authorized to use mostly their own forms and procedures to process and service SBA-50% guaranteed loans. For loans up to $25,000, the lender can determine if no collateral is required. For loans over $25,000, but under $150,000, lenders use their own established collateral policies. For loans over $150,000, SBA's general collateral policy must be followed. Call Ford Scott at the Richmond, Virginia, district office at (804) 771-2400, extension 153.

Virginia Community Development Equity Fund

This program's purpose is to assist owners and developers of historic properties in analyzing project feasibility, creating limited partnerships between investors to maximize use of historic rehabilitation tax credits, and identifying and securing financing. Projects considered must be eligible for federal and state historic preservation tax credits, documented as financially feasible, make a significant contribution to a community revitalization effort (supported by community organizations), and be of sufficient size to absorb partnership costs and reduce risk. The project must adhere to Secretary of the Interior's Rehabilitation Standards. Contact Jeff Meyer, Virginia Community Development Corporation, at (804) 371-7141 or Jeff Meyer at (804) 343-1200.

Downtown Roanoke Housing Development Low Interest Loan Pool

Property owners, developers, or tenants, owning or leasing buildings or condominium units within the boundaries of the Downtown Service District, are eligible to apply for loans to create, or place back into service, "new" residential units in downtown structures built prior to 1991. Only improvements to areas of the building used for residential purposes, except for facade and common systems, are eligible for financing. The maximum amount of any single loan is $250,000, with a minimum initial interest rate for eligible and qualifying applicants as low as prime minus 2% as of the date of closing. The initial interest rate will be set to allow the debt service coverage to equal no less than 1.25 to 1, with repayment terms up to fifteen years. Ineligible activities consist of, but are not limited to, commercial renovations, operating capital, stock in trade, movable fixtures or chattels, new construction (except for additions to upper stories of existing buildings), refinancing, equipment, furniture and commercial signage. Contact Downtown Roanoke Inc, at (540) 342-2028.

MidAtlantic Trade Adjustment Assistance Center (MATAAC)

If your company if facing import competition, MATAAC's team of experienced professionals can recommend and implement strategies to strenghten your competitiveness. Qualified companies can receive financial assistance to pay for half the cost. To qualify, businesses must manufacture or process a physical product and experience: 1) a decline in dollar or unit sales of a major product line; 2) a decline or impending decline in employment; and 3) growing import competition. Contact MATAAC at (800) 566-7522.

Overseas Private Investment Corporation (OPIC)

OPIC is a US government agency offering programs to promote overseas investment of new and expanding businesses in some 140 countries and areas worldwide. This agency assists American investors with financing through loans and guarantees while supporting private investment funds providing equity for US companies overseas. New investments, privatizations, expansions, and modernizations of existing facilities sponsored by US investors are eligible. Contact the OPIC Infoline at (202) 336-8799.

VSBFA DIRECT

VSBFA DIRECT is a direct loan program of the Virginia Small Business Financing Authority (VSBFA) administered by the staff of the Virginia Department of Business Assistance. Eligible borrowers include businesses and individuals engaged in technology, biotechnology, tourism, basic industry, manufacturing, agribusiness, wineries and vineyards, entities providing for a locality's economic and "quality of life" development, and businesses located in Enterprise Zones. Industrial Development Authorities and other Authorities empowered by the Code of Virginia to make loans for economic development purposes are also eligible to apply for assistance. To qualify, businesses must meet VSBFA's definition of a "small" business, have a minimum of 25% cash equity in the project, and create at least two full-time jobs for every $100,000 received. Jobs must pay at least $8 per hour. Funds may be used for acquisition of owner occupied real estate, leasehold improvements or expansion, machinery and equipment, and short-term and permanent working capital. Loans range from $50,000 to $500,000, with a maximum of $250,000 for working capital purposes. Contact the Virginia Department of Business Assistance at (866) 248-8814.

New Markets Tax Credit

The Virginia Small Business Financing Authority (VSBFA) provides qualified small business owners with financing to purchase the building in which the business is located instead of renting space, buy a new building to expand, renovate the current building, purchase major equipment for business expansion, purchase an existing business, or restructure existing debt. Loan amounts range from $50,000 to $2.5 million. Minimum down payment is 10% for loans up to $500,000 and 15% for amounts above $500,000. There is a 1% combined application and commitment fee, as well as a document preparation fee. For areas in the city qualifying for this loan, look below. An application is available by clicking here. For more information, contact VSBFA at 866-248-8814.