Who may apply for VCEDA funds?
For-profit enterprises or entities, governmental or corporate instrumentalities in the coalfield region of Virginia, not-for-profit enterprises or entities, and industrial or economic development authorities located in the coalfield region. The coalfield region consists of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise counties and the City of Norton in southwestern Virginia.
What are eligible uses of VCEDA funds?
This is determined by the VCEDA Board as part of the approval process but, generally, VCEDA funds may be approved for the purchase of real estate; grading of sites; construction, rehabilitation, or expansion of buildings; purchase of machinery, tools, and equipment; and such other improvements, projects, activities, or purposes as the Authority deems necessary to accomplish its purpose.
What items are ineligible for VCEDA funds?
Generally, working capital, operating expenses, inventory, work in progress, and refinancing are not eligible. Projects that primarily involve the direct production of coal or natural gas are not eligible for funding from VCEDA. Support employment that primarily serves the local economy is ineligible. Except for infrastructure development and other limited purposes, projects that do not create full-time direct jobs are ineligible.
Is collateral required for loans?
VCEDA attempts to maximize collateralization of all loans. Ten years is the desired maximum term for a loan secured by real estate, and five years is the desired maximum term for a loan secured by equipment.
What is the interest rate for VCEDA loans?
Fifty percent of the prevailing prime rate at the time of application, for loans to or for the benefit of a for-profit enterprise or entity, unless determined otherwise by the VCEDA Board. Interest rates on all other loans shall be as determined by the VCEDA Board.
Is there a loan closing fee?
On loans to or for the benefit of a private enterprise or other non-governmental entity, a 1% loan closing fee is assessed at closing.
Does VCEDA have any grant programs?
Yes. VCEDA grants are generally limited to infrastructure improvements, workforce development and training, feasibility studies, and other similar type items that do not generate a sufficient revenue stream to repay a loan. VCEDA also operates several special-purpose funding programs through which it can provide grants, including the VCEDA Tourism Capital Improvement Matching Fund for tourism-related capital improvements, a Coalfield Regional Opportunity Fund, and the VCEDA Seed Capital Matching Fund. The seed capital fund is designed for small businesses no older than three years with less than 10 full-time employees; these businesses must be located or be locating in the VCEDA region.