virginia small business financing authority
- cash collateral
- subordinate companion loans
- loan loss reserves
Throughout our 32-year history we have helped many of Virginia’s banks increase their commercial loan portfolios while reducing their credit risk. If you have a loan request that needs a bit more help, VSBFA is happy to talk with you about your client’s credit needs. Send us an e-mail or give us a call today.
VSBFA Contact Information and Staff
You may contact us through our VSBFA main number at: 804-371-8254 or contact any of the VSBFA lenders directly.
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. Can be used for lines of credit or term loans. Through 2016, the VSBFA is not charging a collateral support fee for this program.
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. In these transactions, the business client has two loans, one from the bank and one from the VSBFA. Where warranted, the VSBFA will consider being in a subordinate position to the bank and can sometimes offer more flexible terms in order to help the businesses temporary cash flow needs.
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.
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 times 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.
Environmental Compliance Assistance Fund
This is a direct loan from the VSBFA to a business that seeks to finance equipment that will have quantifiably less impact on the environment or the business is seeking to implement voluntary agricultural best management practices (BMPs) . Bank participation is not required.
Private Activity Bond Issuances for Qualifying Manufacturers & 501 (c) (3) Non-profits
For those manufacturers and 501 (c) (3) non-profits which qualify for tax-exempt financing. Business owners who are unsure as to whether their business and their financing need qualify for tax-exempt bond financing should contact a qualified bond attorney before applying. Most local economic and industrial development authorities can issue bonds as well.