For companies looking to expand in Henrico, we offer a variety of state and local incentives, including economic assistance, real estate credits and job training support. The Henrico EDA can help you determine which incentives your company may qualify for or assist you in creating a specialized incentives package.
Please click here for more information on state and local incentive programs.
Obtaining financing can be one of the hardest parts of starting or operating a business. Listed below are some financing alternatives that are available through a variety of organizations.
- Henrico EDA Industrial Revenue Bonds
Henrico County offers tax-exempt Industrial Revenue Bonds (IRB’s) to eligible companies to encourage relocations and expansions of companies that provide jobs and expand economic opportunities for the community. IRB’s are a means of financing the acquisition, construction, enlargement or improvement of industrial development facilities, and involve the issuance of tax exempt bonds by the Henrico County Economic Development Authority (EDA). The bonds’ tax-exempt status means that interest paid to the buyer of the bonds are not subject to federal income tax.
To begin the process of applying for an IRB, it is recommended that you first retain a bond attorney who will provide the expertise to shepherd the request through the process. Please note that the annual administrative fee is $500 per $1,000,000 of bonds issued.
Click here for the application which must be submitted to the EDA.
- Virginia Community Capital Group
Get the funding your company needs with flexible loan capital and lines of credit designed specifically for small businesses.
- Virginia Department of Small Business and Supplier Diversity
The SBSD is the state agency dedicated to enhancing the participation of small, women- and minority-owned businesses. Certified SBSD businesses have access to business development and procurement advocacy programs.
- U.S. Small Business Administration
The SBA offers access to loan programs, SBIC investments, surety bonds, venture capital and research grants for small businesses.
- Virginia Small Business Financing Authority
The VSBFA is the Commonwealth of Virginia’s economic development and business financing arm. They can help provide businesses with the financing needed to grow and expand throughout the commonwealth. They accomplish this goal by offering loans directly to businesses & non-profits, credit enhancements to banks that are lending to businesses & non-profits, as well as bond financings to benefit businesses.
Whether you own a business that is seeking a loan or you are a commercial lender needing help in offering a loan to a small business, the VSBFA is happy to talk with you about your needs. Some of their financing programs are listed below:
- Economic Development Loan Fund
A companion loan for fixed asset financing needs designed to fill the financing gap between the bank’s loan and private equity.
- SWaM Business Loan Fund
This is a direct loan from the VSBFA to the business client that does not require a bank’s participation in the transaction. It is an ideal tool for bankers who are faced with business loan requests for very small amounts where the bank would prefer to refer the client to an alternative source of funds.
- Child Care Financing Program
This is a direct loan from the VSBFA to a child care center or a family home provider. Bank participation is not required, though often the bank will provide financing for the center’s land and building and the VSBFA can provide a loan for the other necessary items the center needs such as cots, fencing, playground equipment, buses, etc.
- SSBCI Cash Collateral Program
Most typically used in those situations where the business loan applicant has the demonstrated ability to cash flow the debt, but the collateral coverage is insufficient for the bank’s normal underwriting standards.
- 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.
- SSBCI Capital Access Program
This program provides loan loss insurance to a bank to cover a portfolio of enrolled loans. It is designed to be a quick, efficient means of obtaining a credit enhancement from the VSBFA. Under most circumstances, the bank determines whether or not a loan will be enrolled in the program without VSBFA’s involvement.
For more information regarding these loan programs you can visit the VSBFA website.