RD213 - 2007 Virginia Small Business Financing Authority Annual Report


Executive Summary:
Pursuant to Section 2.2-2312 of the Code of Virginia, the Executive Director of the Virginia Small Business Financing Authority (VSBFA) “…shall within 120 days of the close of each fiscal year, submit an annual report of its activities for the preceding fiscal year to the Governor and the chairmen of the House Committee on Appropriations and the Senate Committee on Finance. Each report shall set forth, for the preceding fiscal year, a complete operating and financial statement for the Authority and any loan fund or loan guarantee fund the Authority administers or manages.” The activity listed below and the attached financial statement with accompanying notes is in fulfillment of that requirement.

During Fiscal Year 2007 the VSBFA committed $10,019,031 through its ten direct loan and credit enhancement programs to 125 small businesses or local Industrial Development Authorities. This represents a 21% increase in number so businesses asssited through loans and a 70% in funds committed. More importantly, VSBFA assisted Virginia’s businesses by enabling a total private debt, private equity, and other public debt of $246,819,397 as a result of VSBFA’s participation in the projects. In addition, our loans produced an overall leveraging factor of $25:1 (private to public) during FY ‘07. The VSBFA also facilitated an additional $131.5 million in private activity bond financings for manufacturers and 501 (c) 3 non-profits. This financing assisted Virginia’s businesses and non-profits in creating or retaining 1,884 jobs. Many of those new jobs occurred in the state’s most highly distressed regions, Southwest and Southside Virginia. Overall, the VSBFA portfolio returned $5.51 in one year for every $1 the Commonwealth has invested. This amount does not include the corporate income tax or local machinery and tool tax revenues that were also generated. Since inception, the VSBFA has assisted almost 1,700 small businesses in creating and saving over 21,000 jobs.