Areas Served: Statewide Virginia
The Virginia Small Business Financing Authority’s (VSBFA) Loan Guaranty Program is designed to help Virginia’s small businesses obtain the funds to start, enhance, or expand their operations and thereby create new jobs for citizens of the Commonwealth.
The VSBFA guaranty reduces the bank’s credit risk and helps the business qualify for financing that would not otherwise be available.
Eligible Borrowers: Businesses operating in Virginia must meet at least one of the following criteria to be an eligible borrower:
¢Have $10 million or less in annual revenues over each of the last three years; or
¢Have a net worth of $2 million or less; or
¢Have fewer than 250 employees; or
¢Be a 501(c) 3 non-profit entity (not eligible for supplemental guaranty) Guaranty Term:
¢Deficiency guarantees of lines of credit are provided on an annual basis, with up to four subsequent renewals of the guaranty (5 year maximum).
¢Deficiency guarantees for up to 5 years are available for term loans.
Amount: The maximum guaranty under the program is $750,000 or 85% of the loan amount, whichever is less, with a maximum relationship guaranty between the borrower and the VSBFA of $750,000. Application Fee: $200 Interest Rate: The interest rate is set by the Bank.
Guaranty Fee: The guaranty fee is 1½% of the guaranteed amount due at closing of the line or term loan.
Contact InformationVirginia Department of Business Assistance
Address: 1220 Bank Street
City: Richmond
State: Virginia
Website:
http://www.dba.virginia.gov/vsbfa_loanguarantyprog.shtml
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