There is a possibility that your business may have lost significant revenue in 2022 as a result of COVID-19. Several grant programs are available to small businesses, families, and communities. The following information and resources will be helpful to small businesses in Virginia.
There are $12.67 billion in grants in Virginia and $8.97 billion in additional funding sources from the local government. All types of businesses in Virginia can benefit from the funds. A total of 150,125 farms and 254,007 businesses exist in Virginia.
In the case of small businesses, a small business loan can make a huge difference in the scope of marketing campaigns, the hiring of more employees, and the ability to bridge cash flow gaps. $137.14 billion is spent annually on payroll and salaries in Virginia. The US Department of Justice receives more than 37,760 petitions for bankruptcy from Virginia every year. Grants from the federal government cannot be used to start a business or expand an existing one. Obtaining small business grants may be a viable option for funding your business.
What Is A Grant?
A grant is often the first step toward developing a new product, service, or project. Grant programs are beneficial to small businesses because they do not require repayment. Though obtaining and administering grants can take time and effort, they can be an affordable growth option. Submitting a grant application takes a great deal of time and effort. The ability to demonstrate financial capability is required for small business grants. An organization such as a charity, local government, or foundation may provide a grant.
Virginia Small Grants
There are a variety of grants available to residents of Virginia. There are many grants for 2022 that may be of interest to business owners.
The Virginia Small Business Financing Authority (VSBFA) provides business and economic development financing. Through its programs, the VSBFA provides businesses, not-for-profits, and economic development authorities with the financing they need to grow and expand in Virginia. To accomplish this goal, we provide direct loans to businesses and non-profits, credit enhancements to banks lending to businesses and non-profits, and bond financings to benefit for-profit businesses, 501 (c) (3) not-for-profit entities, and to support clean energy and P3 transportation projects. Through our equity incentive grant program, we also assist small businesses in attracting equity investments.
For over 30 years, we have assisted many Virginia businesses in accessing the capital they need to grow and create jobs. The VSBFA is happy to assist you, whether you are a business seeking a loan or a commercial lender seeking assistance lending to small businesses.
Assisting small businesses and non-profits in times of crisis with compassionate, responsible, and reasonable financial assistance is the mission of Rebuild VA. Approximately $370 million has been awarded to small businesses in Virginia as of January 6, 2022.
Rebuild former Governor Northam announced VA Economic Recovery Fund in July 2020 for small businesses and non-profits affected by COVID-19. More than 3,500 small businesses and non-profits have been awarded $140 million in funding.
A $25 million increase in funding for the program was agreed to by the General Assembly and the Governor in March 2021. Due to that funding, the program has been able to process several applications already in the pipeline.
According to the numbers, the grants awarded were as follows:
- Low-income communities received 36% of the awards
- Minority-owned businesses received 37% of the awards
- Women-owned businesses received 37% of the awards
Grants of $50,000 have been set aside by the Greensville County government as part of the American Rescue Plan Act (ARPA). Businesses with fewer than 25 employees in the county can apply for and receive funding.
Applicants must be licensed to operate in Greensville County and cannot be national companies or franchises of national companies to qualify for grant money. It is necessary for the business to have been operating before Jan 1, 2022, and to demonstrate how the pandemic has adversely affected the business.
All grant funds must go towards the recovery from the COVID-19 pandemic. Payroll expenses are not included in this figure. There will be no waiting list for grants, and grant amounts will be proportional to the size of the business based on the number of employees until funding runs out. A maximum award of $5,000 will be given to businesses with 1-5 employees, and a maximum of $7,500 will be given to businesses with 6-25 employees.
COVID-19 has threatened millions of small business jobs. As these small businesses struggle to stay open and maintain their jobs, they face a near-fatal cash crunch. There will be a significant impact on millions of jobs over the next few weeks.
Small businesses in Virginia can get forgivable loans from the non-profit Virginia 30 Day Fund. As they await recently approved federal funding, the forgivable loan provides immediate financial help for payroll, healthcare coverage, and job preservation.
Small business owners can use the Virginia 30 Day Fund to keep employees on board in the near term through a quick, easy, and red tape-free process. The only thing we ask in return is that you pay it forward if possible.
Fund assistance is available to the following Virginia businesses:
- Businesses with fewer than 30 employees;
- A Virginia-based company with at least one year of experience;
- A resident of Virginia owns and operates the business.
Small businesses receive funds from the Virginia 30 Day Fund without having to repay them. When businesses receive the Fund's assistance, they may, later, redirect those dollars back to the Fund, which will disburse the funding to another Virginia business in need of assistance.
James City County has established a small business relief fund in response to COVID-19. The Virginia Department of Housing and Community Development funds this grant program through Community Development Block Grants. COVID-19 negatively affects small businesses in James City County, and state funding allows the county to provide financial relief to those businesses.
Fortunately, the COVID-19 Small Business Relief Fund provides reimbursement grants for small businesses. For businesses with 20 or fewer full-time equivalent employees, rent, mortgage, and utility payments may be reimbursed. A grant request cannot exceed $15,000, and it can be paid for a maximum of six consecutive months. Expenses eligible for reimbursement must have occurred between March 13, 2020, and June 30, 2022. There must be documentation to confirm the grant funds were paid; grant funds can only be used for reimbursement.
An overview of the program (Program Design) and an application can be found here. A first-come, first-served basis will be followed when considering grant applications. Applications must be completed in full to be considered. The Virginia Department of Housing and Community Development provided $700,000 in financial assistance; while limited, the County is pleased to assist as many businesses as possible.
You could qualify for thousands of dollars in funding if you run a small business in Resort City. A relief program is accepting applications in Virginia Beach. Two categories of grants are available through VBThrive Business Relief Grants. Any small business owner can apply for grants, including tourism, hospitality, and travel businesses. A total of $5 million is allocated for each category.
Various expenses will be covered through grants ranging from $10,000 to $50,000. On April 19, applications for the program will no longer be accepted. The Hampton Roads Local Initiatives Support Corporation (LISC) website outlines eligibility requirements for applicants with a licensed, for-profit business in the city.
Applicant businesses must meet the following criteria:
- The business is a for-profit organization licensed to operate in Virginia Beach and is open to the public at this time
- The Virginia State Corporation Commission Clerks Information System requires all businesses (except sole proprietors) to have an active status
- A Unique Entity ID must be obtained through SAM.gov by all businesses
- The business must have been operating and generating revenue on or before January 1, 2020, and it must be able to file its tax return for 2019
- A company with fewer than 250 employees (including owners, contractors, and 1099 workers).
- Tax returns for 2019 and 2020 must show a minimum 15% loss of revenue (compare tax returns for 2019 and 2020)
- COVID-19 negatively impacted its economy
- Minimum age of 18 is required for ownership
- There can only be one business application per applicant. Owners of multiple businesses who have suffered revenue losses due to COVID should apply for the largest of their businesses
Amounts awarded are eligible for use in the following areas:
- Amounts paid and benefits received (including those of the applicant)
- For ongoing operations, inventory is needed
- Overdue bills
- Expenditures (rent, supplies, etc.)
- Heating, plastic enclosures, etc., for weatherizing outdoor spaces.
- Operating costs of other types
- You cannot use this money to start a business or pay the closed debt
- Applications for funds must be submitted between March 3, 2021, and March 30, 2022, and must include documentation of expenses.
To achieve market-driven redevelopment of vacant and deteriorating industrial and commercial properties, the Industrial Revitalization Fund (IRF) leverages private and local resources.
The program targets a vacant industrial structure in poor condition creating a physical and economic blight on the surrounding area. A property previously used to manufacture, warehouse, mine, transport, produce power, and a large-scale white elephant structure may be eligible. A building that was originally intended solely for residential use is not eligible.
These structures are remnants of past economic vibrancy and local economies in transition, and their deteriorated condition poses a considerable deterrent to future economic development in the surrounding area. A maximum of $500k can be allocated for the project.
To support small business recovery and resiliency efforts in the region after the COVID19 outbreak, the counties of Floyd, Giles, Pulaski, and Montgomery have established a regional $1.6 million fund known as the New River Valley Small Business Relief Program. To mitigate the economic impacts of COVID-19 on localities, Virginia's Department of Housing and Community Development has provided funds for this program.
A maximum of $15,000 will be provided to eligible businesses to offset the storm's impact on their operations. Under the supervision of a regional Application Review Committee and Project Management Team, Giles County will administer this program on behalf of its neighboring communities.
During their meeting on June 17, the Fluvanna Board of Supervisors authorized the creation of a small business grant program with a funding level of $350,000. Business owners from Fluvanna will be able to recover from the ongoing health crisis through the Fluvanna Small Business Grants. As a result of the COVID-19 health crisis, Fluvanna grants will help businesses recoup increased operating costs, lost revenues, and other unbudgeted expenses.
There are grants available to assist for-profit companies in Fluvanna and private schools within the county. The number of employees at a business determines the award amount. A grant may be awarded for as little as $2,500 or as much as $20,000:
- Employees with fewer than 0 full-time equivalents: up to $2,500
- A maximum of $5,000 can be allocated for one full-time employee
- Employees between 2 and 20 full-time equivalents: up to $10,000
- The amount is up to $15,000 for employees between 21 and 50 full-time equivalents
- Up to $20,000 per employee if you have 51+ full-time equivalents
Small businesses in Greensville County, Virginia, are being offered $50,000 to help them recover from the pandemic. County businesses with fewer than 25 employees and no affiliation with a national brand can apply for grants funded by the American Rescue Plan Act. Pandemic grants may cover expenses or lost revenue related to the pandemic, excluding payroll. Amounts of grants vary depending on the business's needs and the team's size. Businesses eligible for grants can receive up to $7,500. Applicants can no longer submit applications once funds have run out.
Business owners who wish to expand through e-commerce can apply for a Newport News E-Commerce Grant Program. Women, minorities, and small businesses are targeted specifically by the program. Applicants are awarded funds on a case-by-case basis. The best way to improve profitability in this area is to partner with an approved e-commerce service provider.
Major city projects are eligible for grants from the city of Williamsburg. Grants under $100,000 do not require City Council approval, but grants over $100,000 must do so. Priority is given to existing businesses in the city and those in certain targeted industries. In addition to hospitality and brewing, healthcare and tourism, retailers, and research and development are among the industries targeted. A project must provide value to the community, such as creating jobs, raising tax revenue, or making the city more vibrant.
Several grants worth up to $200,000 are available to Prince William County businesses and building owners to help cover expenses related to pandemics and physical improvements. By setting up outdoor dining areas and purchasing remote work equipment. Companies must be in business for at least two years, have a physical location in Prince William County, and pay all taxes on time to qualify.
Many websites offer grants for women if you search for grants for women on Google. It is common to find scams and confusing government (SBA) websites on the Internet, as you probably already know. There are many kinds of forms and applications that ask for personal and financial information.
The WomensNet website can assist you in finding funding for your business venture. It will still take some time and effort to complete the process. This site is an excellent resource for those who want to take their business to the next level. For women looking for grants, Amber Grants are among the best options.
Women business owners across the country (including Virginia) can apply for this grant. There is no better time than right now to apply for the $10,000 Amber Grant, which is given away each month. If you qualify, you will automatically be able to apply for a grant of $25,000 if you are one of their 12 monthly winners. A total of $35,000 will be awarded over one year through the grant.
Small businesses can find relevant grants through the Virginia GrantWatch program. Various local, state and federal agencies provide small business loans and grants through this website. GrantWatch, a free service that helps you locate new grants, can help you find grant writers who can help you prepare outstanding grant proposals. You only need to answer a few questions to apply for a grant.
Only subscribers who have subscribed to Virginia GrantWatch can access its information. Weekly subscriptions cost $18, and annual subscriptions cost $199. Free members cannot submit grant applications.
Frequently Asked Questions:
Financial assistance programs for small businesses in Virginia include grants, loans, tax incentives, and other financial incentives. Examples of grant programs include the Virginia Investment Partnership Grant (VIP), Virginia Jobs Investment Program (VJIP), and Virginia Enterprise Zone (VEZ) Grant Program.
Yes, the Virginia Enterprise Zone (VEZ) Grant Program offers state and local incentives, including grants, to businesses located within designated enterprise zones. The program's purpose is to encourage job creation and private investment in economically distressed areas.
The Virginia Jobs Investment Program (VJIP) offers customized recruiting and training assistance to companies creating new jobs or experiencing technological change. The program supports both new and expanding businesses in Virginia, helping them with workforce development needs.
You can start by contacting local and regional organizations, such as economic development authorities, chambers of commerce, and business incubators, to inquire about available grant programs or financial incentives in your area. These organizations often have information on local resources and opportunities for small businesses.
The Virginia Small Business Financing Authority (VSBFA) offers various financing programs, such as direct loans, loan guarantees, and equity investments, to support small businesses in Virginia. While not a grant program, it is an essential resource for businesses seeking financial assistance through loans or other financing options.
To assist small businesses, the Virginia Small Business Development Center (ILSBDC) provides several resources. Coronavirus affects small businesses, but financial assistance is available from many government and private organizations. By providing a boost to the economy, small business financial aid contributes to the growth of the economy. Pick one of the funding sources above that works for your business if you're looking for funding.
Exploring funding options outside Virginia? Gain a fresh perspective on the support available in the Midwest — check out our latest blog post detailing small business grants in Cincinnati. Broaden your horizons and find the grant that suits your business needs.
If you live in Oregon instead, check out our article about grants for Oregon small businesses to learn more.
Are you interested in learning more about different grants and programs that can help you with your living situation? Check out the rest of Gov Relations’ blog section today!