Feds award $13.9M in grants to capitalize Va. small business loans

The U.S. Department of Commerce’s Economic Development Administration has awarded $13.9 million in CARES Act grants that will let city, state and regional governments in Virginia administer revolving loan funds (RLF) to assist small businesses, the department announced Thursday.

According to a news release, the Virginia Small Business Financing Authority will receive a $10.2 million EDA CARES Act Recovery Assistant grant, which will let the authority capitalize and administer an RLF to provide loans to businesses affected by the coronavirus throughout the state.

The other awardees are:

• The city of Newport News, which will receive $1.5 million to assist small businesses in Newport News and Hampton;
• The Cumberland Plateau Planning District Commission, which was awarded $770,000 to help businesses in the city of Norton and the counties of Buchanan, Dickenson, Tazewell, Russell, Wise, Scott and Lee;
• The city of Lynchburg, which will receive $726,000 for gap financing and loans to businesses in Lynchburg and the counties of Amherst, Appomattox, Bedford and Campbell;
• The city of Norfolk, awarded $549,900 for businesses in its city.

“Federal support is critical as America’s small businesses navigate this health crisis,” Gov. Ralph Northam said in a statement. “We appreciate these grants from the U.S. Department of Commerce, which will complement Virginia’s own $70 million small business relief program. Support for these businesses is essential to a strong and robust economic recovery.”

The Virginia grantees are among 850 nationwide that received supplemental funding under $1.5 billion provided to the EDA under the CARES Act.

Subscribe to Virginia Business.

Get our daily e-newsletter.