VCEDA approves $8.8 million in loans & grants in 2009

LEBANON – December 17, 2009 – The Virginia Coalfield Economic Development Authority approved $8.8 million in loans and grants in 2009, including funds to help with two existing business expansions, a town redevelopment project, a study for a new medical school, and funding for continued development of two new regional business parks.

“It is very positive to be able to announce and witness growth and new jobs in a year with difficult economic times,” said Jonathan Belcher, VCEDA executive director. “In addition to the announcement of over 330 new jobs in the region, 2009 was marked with the commencement of a number of important new projects in the region,” said Belcher.

In 2009, groundbreakings were held for a new business and technology park in Tazewell County (Bluestone), the new Grundy Town Center, the Appalachia America Energy Research Center in Wise, as well as the expansion of CGI in Lebanon. In addition, In Touch Sales just opened a new call center and IT operation in Richlands, and Sykes Enterprises cut the ribbon on their new facility at Southern Gap business park in Buchanan County.

In today’s board of directors meeting, the VCEDA board approved a loan of $250,000 to Mountain Forest Products, LLC for an expansion of its wood products business in Dickenson County. The loan will be used to pay toward new machinery. Mountain Forest Products expects to add several new direct and indirect jobs over the next few years as a result of the project.

In other action, VCEDA also approved a $491,900 increase in a grant to the Tazewell County Industrial Development Authority to be used to assist with development at The Bluestone Regional Business and Technology Center in Tazewell County. With the increase, the amount of VCEDA’s grant is now up to $2 million, and will help the county obtain further matching funds for the project from the Virginia Tobacco Commission.

The VCEDA board also approved a request from the Industrial Development Authority of Buchanan County and the Appalachian College of Pharmacy to forgive and convert into a grant the $3 million loan made by VCEDA in 2006 to the IDA for the Appalachian College of Pharmacy project. It is hoped that the loan forgiveness will aid the pharmacy school in obtaining additional accreditation.

The VCEDA board also elected officers for 2010: George Cridlin, Chairman; Donald Baker, Vice Chairman; Mike Quillen, Treasurer; Sam Lewis, Secretary.