Financial Assistance

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 Incentives

For companies looking to locate in Henrico, we offer a variety of 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.

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  • Fast-Track Approval Process
    Henrico County will help expedite permitting during the construction and build-out stages for qualifying companies. This process is coordinated by the Deputy County Manager for Community Development and will begin with a conference between the appropriate company executives and all relevant County officials to review all requirements, timing and target dates for the complete build-out of the project.
  • Defense Production Zone
    As a benefit to national defense-related businesses, Henrico County may establish a defense production zone; this would allow Henrico to create special incentives and certain regulatory flexibility for qualified businesses locating or expanding operations in a zone.
  • Henrico Enterprise Zone
    An Enterprise Zone is a special area identified by Henrico County and approved by the state as being eligible for incentives designed to stimulate business development and job growth. Businesses within Enterprise Zones can take advantage of state and county incentives for physical improvements to their properties.
  • Foreign Trade Zone #207
    Richmond International Airport offers space for storage and transport operations. Imported goods are not subject to U.S. Customs duties until they leave the zone for domestic consumption.
  • Commercial Rehabilitation Real Estate Tax Exemption
    Henrico County will exempt the increased real estate taxes for seven years on improvements made to a commercial or industrial facility if it is at least 26 years old and meets the qualifications outlined in Henrico code.

Financing Options

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  • Henrico EDA Industrial Revenue Bonds

    Your business may be eligible for Henrico County tax-exempt industrial revenue bonds. Henrico County offers Industrial Revenue Bonds (IRB’s) to encourage relocations and expansions of companies that provide jobs and expand economic opportunities for residents and the community.
    IRB’s are a means of financing the acquisition, construction, enlarging or improving 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
    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:

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    • 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. 

Additional state and local incentives may be available. Please click here for more information on these programs.