HD97 - The Development of Certain Programs to Assist Small Businesses in Locating and Obtaining Capital Financing

  • Published: 1994
  • Author: Department of Economic Development and Virginia Small Business Financing Authority
  • Enabling Authority: House Joint Resolution 649 (Regular Session, 1993)

Executive Summary:
In response to House Joint Resolution 649, the Virginia Small Business Financing Authority (VSBFA) has undertaken the development of a comprehensive directory of capital finance sources in Virginia to assist small businesses in the Commonwealth having difficulty in obtaining capital financing due to lack of information and understanding of financing programs available.

VSBFA has gathered information on all federal, state and local public sector sources of capital financing in Virginia and is in the process of organizing this data into a directory by type of financing. The nature of each type of financing and the likely sources from which to obtain this type of financing will be described in detail enabling potential borrowers to focus on programs which meet their particular financing need. Such a directory will help small businesses to seek assistance in the most effective and realistic manner.

The twenty-one local offices of Virginia's Small Business Development Center (SBDC) network will serve as the source for the dissemination of the information contained in the directory to those seeking capital financing information. Additionally, copies will also be provided to local economic development organizations and officials. The SBDCs are in the best position, however, to assess a business' financing needs. Using the directory as a comprehensive reference that will be able to assist the business in accessing appropriate capital financing and public sector financing programs.

It is expected that the directory will be completed, printed and available for distribution on or before September 1, 1994.

House Joint Resolution 649 also requested the Virginia Small Business Financing Authority to develop and implement, subject to appropriate funding from the General Assembly, a direct loan program to address the financing needs of creditworthy emerging or existing businesses that have been unable to obtain financing from conventional private sources. VSBFA developed the framework for such a program and proposed same to the 1992 Commission on Capital Financing. Funding was not appropriated to allow the program to be implemented.