Virginia Small Business Financing Authority Home

The Virginia Small Business Financing Authority (VSBFA) is the Commonwealth of Virginia's economic development and business financing arm.  We help banks make loans to businesses that can demonstrate repayment ability, but where the bank needs additional collateral support or a more robust secondary repayment source by providing: 

  • cash collateral
  • subordinate companion loans 
  • guaranties
  • loan loss reserves
  • loan purchase participations

Throughout our nearly 30-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.

You may contact us through our VSBFA main number at:  804-371-8254 or contact any of the following VSBFA lenders directly:

Valley & Southwest VA
Linda Gilbert

Northern VA & Winchester
Anna Mackley

Hampton Roads, Eastern Shore & Southern VA
Mary Jo Sisson-Vaughan

Central VA & Northern Neck
Patty Thorne

Executive Director
Scott Parsons


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 2014, the VSBFA is not charging a collateral support fee for this program.

SSBCI Loan Purchase Participation Program:
Used in those situations where the bank wants to sell a portion of the proposed loan to the VSBFA.  Where warranted, the VSBFA will consider being in a subordinate position to the bank.

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 Virginia 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. 

Small Business 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.  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.   

Small Business Financing Authority Board Minutes



The responsibility and liability of the Bank Director is ever increasing.   Providing your Directors with training to help them through the complexities of today’s banking environment is critical.

The Virginia Bankers Association is offering a series of monthly, 30–minute training modules geared to your directors. These programs have been developed in consultation with a highly respected group of banking industry experts. Your subscription to this series will assist you with the responsibility to educate those who serve on your Board.

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The first of the webinars are being recorded now and will be available in the very near future.   To purchase a subscription, please click HERE.  For more information, please contact Courtney Fleming at (804) 819-4748 or