Virginia Small Business Financing Authority (VSBFA)

Virginia Small Business Financing Authority (VSBFA) The Virginia Small Business Financing Authority (VSBFA) is the Commonwealth of Virginia’s business and economic development financing arm. Through the VSBFA, businesses and nonprofit organizations can access financing programs that support creation, and long-term economic development throughout Virginia. VSBFA programs include: direct loans, lender support programs, bond financing, equity incentive programs, and other financing tools designed to help businesses bridge funding gaps and access the capital they need to grow. VSBFA provides businesses and localities with debt financing resources for economic development projects and other small business and entrepreneurial financing needs. For more information, please refer directly to the  VSBFA website. Highlights VSBFA offers programs to provide economic development authorities with the financing needed for economic growth and expansion throughout the Commonwealth. VSBFA offers loans directly to businesses and nonprofits, credit enhancements to banks that are lending to businesses and nonprofits, as well as bond financing to benefit for-profit businesses and 501(c)(3) nonprofit entities. Program Overviews Direct Loan Programs for Small Businesses   - Through the Virginia Small Business Financing Authority (VSBFA), the Virginia Department of Small Business and Supplier Diversity (SBSD) offers financing programs designed to help eligible Virginia businesses secure the funding they need to move forward with confidence. VSBFA loan programs can support businesses in a variety of ways. Some of these programs provide direct financing opportunities for businesses that may not qualify for traditional lending alone, while other programs work alongside commercial lenders by helping bridge financing gaps, reducing collateral shortfalls, or supporting transactions that may otherwise fall outside conventional underwriting standards. Loan Programs: Microloan Program   - This is a direct loan from the VSBFA to the business client that does not require a bank’s participation in the transaction. Child Care Financing Program - This program is focused on helping qualifying childcare providers improve the education of the children in their care through specific uses of funds. Economic Development Loan - This is a companion loan for fixed-asset financing needs designed to fill the financing gap between the bank’s loan and private equity. Capital Connect Program - SSBCI 2.0  - This is a loan participation program that offers direct loans alongside companion small business loans originated by lenders. Lender Programs: Classic Loan Guaranty Program  - This is a traditional deficiency guaranty of a bank loan. It can be used for lines of credit or term loans any time the bank believes it needs additional support in order to approve a business loan request. Cash Collateral Program - This SSBCI 2.0 program establishes pledged cash collateral accounts with participating lenders to enhance the loan collateral coverage for eligible small business borrowers having difficulty getting approved for loans due to a shortfall. Bond Programs: Through the Virginia Small Business Financing Authority (VSBFA), the financing arm of the Virginia Department of Small Business and Supplier Diversity (SBSD), eligible manufacturers, 501(c)(3) nonprofit organizations, and other qualifying organizations may access both taxable and tax-exempt bond financing to support eligible projects, facility improvements, expansion efforts, and other long-term capital needs. Because bond financing includes specific legal and eligibility requirements, organizations should consult a qualified bond attorney before applying to determine whether this type of financing is a good solution for their project and funding challenges.

Direct Loan Programs for Small Businesses   - Through the Virginia Small Business Financing Authority (VSBFA), the Virginia Department of Small Business and Supplier Diversity (SBSD) offers financing programs designed to help eligible Virginia businesses secure the funding they need to move forward with confidence. VSBFA loan programs can support businesses in a variety of ways. Some of these programs provide direct financing opportunities for businesses that may not qualify for traditional lending alone, while other programs work alongside commercial lenders by helping bridge financing gaps, reducing collater