Virginia Coalfield Economic Development Authority (VCEDA) Financing

The Virginia Coalfield Economic Development Authority (VCEDA) provides low-interest loans to qualified new or expanding businesses through its financing program. The loans may be used for real estate purchases, construction or expansion of buildings, and the purchase of machinery and equipment.These loans are designed to enhance the economic base of Southwest Virginia's e-Region, which comprises the seven counties and one city of southwestern Virginia: Wise counties and the City of Norton. VCEDA also provides grants on a limited basis for workforce development and training, start-up seed capital, and for projects that do not generate a sufficient revenue stream to repay a loan. Contact Jonathan Belcher Virginia Coalfield Economic Development Authority 276.889.0381 mail e-region.org Eligibility Eligible projects must: Locate within the Virginia Coalfield Economic Development Authority region. Be affiliated with a basic employer, meaning 51% or more of the facility’s revenue must be generated outside the Region (if employer is a private business). Pay an average wage at least equal to the Virginia state minimum wage. Priority will be given to loans requiring $10,000–$25,000 or less for each full-time basic job created, and to projects that create at least 15 new full-time jobs within 36 months of start-up. Incentives and financing are subject to and based upon diligence, funds availability, application submittal, program requirements, and board approval. Process The company contacts the Virginia Coalfield Economic Development Authority to determine initial eligibility and obtain an application. Generally, a meeting to discuss the request with VCEDA staff is scheduled. A resolution of support for the application is generally required from the local industrial or economic development authority where the project will be located. The application is submitted to VCEDA, where it is reviewed and, if found in order, placed on the agenda for the next meeting of VCEDA’s Project Review Committee. The VCEDA Project Review Committee reviews the application and then makes a recommendation to the full VCEDA Board. The full VCEDA Board votes on whether to approve the application. If the application is approved, then the appropriate loan or grant documentation is prepared and a date scheduled for a loan or grant closing. Applications are due at least one month in advance of the VCEDA Board meeting at which they are to be considered. If the loan or grant agreement is not signed within 180 days of the loan or grant approval, then the loan or grant is canceled automatically. A request for an extension of this deadline may be submitted to the VCEDA Board for consideration. Resources VCEDA Website FAQ Who may apply for VCEDA funds? For-profit enterprises or entities, governmental or corporate instrumentalities in the coalfield region of Virginia, not-for-profit enterprises or entities, and industrial or economic development authorities located in the coalfield region. The coalfield region consists of Wise counties and the City of Norton in southwestern Virginia. What are eligible uses of VCEDA funds? This is determined by the VCEDA Board as part of the approval process funds may be approved for the purchase of real estate; grading of sites; expansion of buildings; purchase of equipment; and such other purposes as the Authority deems necessary to accomplish its purpose. What items are ineligible for VCEDA funds?