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The Economic Development Authority offers a variety of financial resources.
The EDA works with local banks that offer SBA 7A loan guarantees, with the Virginia Asset Financing Corporation on SBA 504 loans, and is authorized to issue tax-exempt Industrial Revenue Bonds.
The EDA also manages a small business loan program in which direct subordinated debt financing is available for loans in the $5,000-$75,000 range.
Warren County has been awarded an Enterprise Zone by the Commonwealth of Virginia.
Two locally managed Technology Zones are available to businesses. Substantial financial and training benefits accrue to companies locating in these zones.
Eligible Applicants: Industrial or manufacturing firms where goods are assembled, re-assembled, modified, manufactured, or produced at the job site; wholesale and distribution enterprises; commercial enterprises that establish new business, expand existing business, create new jobs or save existing jobs.
Eligible Uses of Loan Proceeds: site purchases of industrial land, including site development costs; relocation costs incurred in construction and occupancy of the facility (eligible only when additional investment occurs); new construction or rehabilitation of existing buildings; machinery and equipment acquisitions; start-up operating costs and working capital (capped at 25% of total project cost).
Financing Limits: Maximum commitment of funds will not exceed 25% of total project cost. Level of funding will not exceed $10,000 for each job to be created (at 1.5 times the minimum wage rate) at project completion or projected over three years after completion. There is a $75,000 limit on the amount that can be borrowed by any one business, unless the EDA approves a higher amount.
Matching Requirements: The amount borrowed must be matched by a bank loan in a minimum amount equal to the loan request. For example, if $100,000 is required for a project, the EDA loan maximum will be $50,000.
Job Creation Requirements: For each $10,000 borrowed, one full-time job must be created that pays a minimum of 1.5 times minimum wage ($7.73/hour currently).
Terms and Underwriting Standards: Loan term will generally be between 5 and 10 years depending on the asset financed. Term for working capital loans shall not exceed five years. The rate will be established at the time of closing the loan and will be indexed from the prime rate as reported in the Wall Street Journal to the nearest 1/2 of 1%.
Click here for an application form
Eligible Applicants: new or existing retail or commercial business targeted to providing goods or services to Warren County residents.
Eligible Uses of Loan Proceeds: equipment and inventory purchases, and working capital. A maximum of 25% of loan proceeds may be used for working capital.
Financing Limits: A maximum of $10,000 may be loaned for a term not to exceed 5 years. A minimum of 10 percent of the total project cost will be required in the form of borrower cash.
Job Creation Requirements: The job creation requirement is waived, but the borrower is expected to work full-time at the funded business.
Terms and Underwriting Standards: Loan term will generally be 5 years depending on the asset financed. The rate will also be set based on the risk using the prime rate as the basis.
Click here for an application form
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