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Virginia Small Business Financing Authority Will Lower Rates
RICHMOND – Governor Timothy M. Kaine today announced enhancements to the Virginia Small Business Financing Authority’s (VSBFA) Direct Loan and Loan Guarantee programs. For new loans, the rate on the Direct Loan Program will drop by two percent, and the program’s term length will increase from a five-year to a 10-year maximum. The VSBFA’s Loan Guarantee Program term will also increase, from a three-year to a five-year guarantee.
“These rate and term enhancements offer lower costs and more flexibility for small business owners, as well as banks and other lenders looking for creative ways to support small businesses,” said Governor Kaine. “We expect lower rates and longer terms to lead to new investments and new jobs, helping boost hundreds of small businesses looking to grow across the Commonwealth, especially in our rural and economically distressed areas.”
The VSBFA provides direct loans in economic development transactions and under specific programs designed to promote environmental stewardship and assist licensed daycare centers and family home providers. Loan guarantees offered through the VSBFA provide credit enhancements to commercial banks to increase access to capital for businesses.
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Financial Markets
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