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City of Danville Office of Economic Development
P.O. Box 3300 | 427 Patton St.
Danville, VA 24543-3300
Ph: (434) 793-1753 | Fx: (434) 797-9606
International Line: 001-434-793-1753
Financing Resources
Loan Guaranty Program
Through the Loan Guaranty Program, the Virginia Small Business Financing Authority (VSBFA) will guarantee a portion of a loan or line of credit extended by a commercial bank to a qualified Virginia business. With a guaranty from VSBFA, the bank benefits by reducing its risk in lending to the Virginia business, and the business benefits by accessing financing it would not otherwise have been able to obtain.

Virginia Economic Development Loan Fund
With funding from the federal Economic Development Administration and the Commonwealth of Virginia, the Virginia Economic Development Loan Fund (EDLF) is designed to fill the financing gap between private debt financing and private equity. Funds are provided for fixed-asset financing to new and expanding industries that are creating new jobs or saving "at risk" jobs in Virginia. Funds can be used for the acquisition of land and buildings, the purchase of machinery and equipment, and construction or improvements to a facility. Manufacturing companies and other industries which derive 50% or more of their sales outside of Virginia are eligible to apply.

Industrial Development Bonds
Companies seeking to finance new manufacturing plants or improvements to existing manufacturing plants can obtain long-term financing at favorable interest rates through the use of Industrial Development Bonds (IDBs). An IDB is a form of tax-exempt municipal bonds issued by a state or local government entity to finance the acquisition, construction, or equipping of a facility. There are three programs administered by the Virginia Small Business Financing Authority (part of Virginia's Department of Business Assistance) that facilitate this method of financing: Tax Exempt Industrial Development Bonds, Taxable Industrial Development Bonds, and the Umbrella Bond Program.

Virginia Capital Access Program
The Virginia Capital Access Program (VCAP) is a non-bureaucratic tool to assist banks in meeting the financing needs of businesses within Virginia, by encouraging banks to make loans to borrowers with riskier credit profiles. VCAP utilizes an insurance concept on a portfolio of loans by establishing a loan loss reserve at each participating bank. The reserve is funded by enrollment premiums paid by the borrower and the bank, which are then matched by VSBFA. The maximum loan amount is $250,000, with fees ranging from 3-7% of the loan amount.

Small Business Compliance Assistance Fund
Through this program low-interest rate loans are available to small businesses for the purchase and installation of air pollution equipment needed to comply with the Clean Air Act; for the purchase and installation of equipment to implement voluntary pollution prevention measures; or for the implementation of selected voluntary agricultural best management practices (BMPs) as listed in the Virginia Agricultural BMP Manual. These are direct loans from the VSBF, up to $100,000 at a fixed 3% interest rate. This fund is for small businesses employing 100 people or less.