VCEDA Financing Programs
The Virginia Coalfield Economic Development Authority (VCEDA) is a unique regional economic development organization that uses a portion of local mineral severance taxes paid by the coal and natural gas industries to operate incentive financing programs to help enhance and diversify the economy of Southwest Virginia’s e-Region and create jobs.
VCEDA’s primary financing program is a revolving loan fund designed to provide low-interest loans for fixed asset needs (e.g., land purchase, building construction, equipment). Financing is based in part upon the number of new jobs created, amount of private investment, and wage rates. An average wage of at least 1.5 times federal minimum wage is required. Priority will be given to projects requiring $10,000-$25,000 for each new job created, and projects that create at least 15 full-time jobs within 36 months. The project must provide at least 20% equity.
VCEDA also provides other financing designed to assist industrial development authorities with the purchase of real estate for economic development, development of industrial parks, business parks, and technology parks, and to assist with infrastructure within these industrial parks.
Incentives and financing are subject to and based upon eligibility, location, due diligence, funds availability, application and program requirements, and board approvals.
For further information on other incentive and financing programs, Click Here.
- Low interest rate loans
- For fixed asset needs such as the purchase of real estate, grading of sites, building construction or expansion,
and the purchase of equipment, machinery, and tools
- Working capital, operating expenses, inventory, and refinancing are not eligible
- Collateral is required on all loans
- Twenty percent equity required
- Maximum loan term of 10 years on real estate loans and 5 years on equipment loans is desired
- Seed Capital Matching Fund for businesses no older than one year and under 10 full-time employees
Next meeting of the VCEDA Board is scheduled for 3 p.m. August 15, 2019 at the VCEDA Office, 527 East Main Street, Lebanon, Va.
Committee Meetings: Executive - Noon; Business Development - 1 p.m.; Finance - 1:30 p.m.; Project Review - 2 p.m.; Full Board - 3 p.m.
Southwest Virginia's e-Region is marketed by the Virginia Coalfield Economic Development Authority - VCEDA - a regional economic development organization created by Virginia's General Assembly in 1988 to enhance and diversify the economic base of the seven-county, one-city, coal-producing region in southwestern Virginia. Since its creation, VCEDA has helped create more than 20,000 jobs.