Commonwealth’s Development Opportunity Fund (COF)

The Commonwealth’s Development Opportunity Fund (COF) is a “deal-closing” fund to be employed at the Governor’s discretion to secure a company location or expansion in Virginia. Administered by the Virginia Economic Development Partnership (VEDP), the COF serves as a final resource for Virginia in the face of serious competition from other states or countries. The COF grant is a negotiated amount determined by the Secretary of Commerce and Trade, based on the recommendation of VEDP, and subject to approval of the Governor. Contact Katherine Goodwin 804.545.5794 kgoodwin vedp.org Eligibility All projects must meet the following eligibility requirements: Project must be affiliated with a basic employer, meaning 51% or more of the facility’s revenue must be generated outside the Commonwealth. Project must be an active and realistic competition between Virginia and another state or country for attracting the project. Matching local financial participation is required on a dollar-for-dollar basis (cash or in-kind). Public announcement of the project must be coordinated by VEDP and the Governor’s Office. Each project must meet thresholds for capital investment and job creation. If located in certain localities (indicated on the map below), projects may qualify for Single Distressed or Double Distressed Eligibility Thresholds instead of the General Eligibility Thresholds. General Eligibility Thresholds: 50 new jobs and $5 million capital investment, or 25 new jobs and $100 million capital investment. The average annual wage for the new jobs must be at least equal to the prevailing average annual wage in the locality, excluding fringe benefits. If the average annual wage is at least twice the prevailing average annual wage, the Governor may reduce the new jobs threshold to as low as 25. Single Distressed Eligibility Thresholds: For a locality with an unemployment rate above the average statewide unemployment rate or with a poverty rate above the statewide average poverty rate. 25 new jobs and $2.5 million capital investment. Jobs must pay at least 85% of the prevailing average annual wage in the locality, excluding fringe benefits. Double Distressed Eligibility Thresholds: For a locality with an unemployment rate above the average statewide unemployment rate and with a poverty rate above the statewide average poverty rate. 15 new jobs and $1.5 million capital investment. Jobs must pay at least 85% of the prevailing average annual wage in the locality, excluding fringe benefits. For most performance agreements, minimum capital investment, new job, and wage thresholds must be met within 36 months. “Capital investment” means an investment in real property, tangible personal property, or both at a manufacturing or basic nonmanufacturing facility within the Commonwealth. "New job" means employment of an indefinite duration for which the company pays wages and standard fringe benefits for its employee, requiring a minimum of either (i) 35 hours of the employee's time a week for the entire normal year of the company's operations, which "normal year" must consist of at least 48 weeks or (ii) 1,680 hours per year. If there are existing jobs at the company’s facility, it is expected that the COF grant performance agreement will state the number of existing jobs and will require that the new jobs be in addition to the existing jobs. At the discretion of VEDP, jobs may include teleworking positions, held by Virginia residents, who are employees of the recipient company or its affiliates. Wages are defined as W-2 wages. Process Project is initiated with a VEDP Business Investment Manager.

Eligibility All projects must meet the following eligibility requirements: