Governor McAuliffe Announces Virginia Small Business Financing Authority Receives Additional $6.1 Million from U.S. Treasury
Governor Terry McAuliffe announced today that the Virginia Small Business Financing Authority (VSBFA), a division of the Virginia Department of Small Business and Supplier Diversity (DSBSD), has secured an additional $6.1 million to help Virginia’s banks lend more to small businesses. Through a third disbursement from the U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI), the funds will be put to work to help spur more small business lending.
Speaking about today’s announcement, Governor McAuliffe said, “To build the new Virginia economy, we must continue to help Virginia’s small businesses grow. The growth and success of Virginia’s small businesses are integral parts of my economic development strategy, and I am proud of the work the Virginia Small Business Financing Authority and Virginia’s Center for Innovative Technology are doing to achieve that important goal. These new funds will support the Commonwealth’s businesses and help them create even more jobs for Virginians.”
“Small businesses are the nation’s leading job creators, and the State Small Business Credit Initiative continues to help connect sources of capital to the small businesses that need it,” said Sarah Bloom Raskin, Deputy Secretary of the U.S. Treasury Department. “The funds announced today will support loans and investments so that Virginia’s small businesses can be positioned to play a vibrant role in the local economy.”
“Credit enhancement programs like the ones offered by the VSBFA are very effective tools in helping our efforts to diversify the Virginia economy and catalyze more growth in the private sector,” said Secretary of Commerce and Trade Maurice Jones. “As we strive to seek more balance in Virginia’s economy, fostering a more entrepreneurial ecosystem through tools such as these is vital to Virginia’s economic health.”
The funds will also be used to increase investments in small technology companies through Virginia’s Center for Innovative Technology (CIT). Popular programs such as the VSBFA’s Cash Collateral Program, Capital Access Program, and the Economic Development Loan Fund, will be available to more businesses as a result of this funding. In addition, the VSBFA will use some of the funds to continue its partnership with Virginia’s Center for Innovative Technology (CIT) to enhance CIT’s GAP Fund which is designed to assist Virginia entrepreneurs in Virginia-based technology, clean tech and life science companies.
Since the beginning of the McAuliffe Administration, the VSBFA has partnered with Virginia’s banks and equity providers to extend over $46 million in loans and equity investments to Virginia businesses and these businesses have created and retained 1,763 jobs.
“Working hand in hand with strong strategic partners like the U.S. Treasury’s SSBCI, CIT, the Virginia banking community, Virginia’s small business development centers, and the National Federation of Independent Businesses, we have been able to help Virginia’s small businesses expand and hire new employees”, said Gail Letts, Board Chairman of the VSBFA. “This latest round of funding will build on past successes, provide entrepreneurs and small business owners access to new sources of capital for many years to come, and enhance Virginia’s reputation as one of the best states for business.”
The VSBFA was created in 1984 and is an important tool in providing the necessary capital to help the Commonwealth’s small business sector grow. Created in 1985, The Center for Innovative Technology (CIT), a non-profit corporation, plugs gaps at the earliest stages of the Innovation Continuum – commercialization and seed funding – as it helps entrepreneurs launch and grow high-growth technology companies and create high-paying jobs for the future. More information about the VSBFA and CIT can be found on their respective websites. For VSBFA: http://www.vabankers.org/VSBFA . For CIT: http://www.cit.org.
The mission and vision of the Department of Small Business and Supplier Diversity (DSBSD) is to promote economic growth by helping Virginian’s prosper. The agency works with public and private entities to aggressively pursue supplier diversity and inclusion by creating contracting opportunities and promoting fairness in the state’s procurement processes for Small, Women and Minority Owned businesses. The agency is the Commonwealth’s one stop vehicle to provide access to business resources and maximize the potential for success while building business capacity and facilitating capital solutions to fund business development and expansion. DSBSD has a repository of information that supports business formation and growth of SWaM businesses with the ultimate results of job and wealth creation in the new Virginia economy.