Loan program opened for Helene-impacted Southwest Virginia farms and ag businesses
Disaster loans will be offered to farmers and agricultural and forestry small businesses that were impacted by Hurricane Helene in Southwest Virginia.
Virginia Small Business Finance Authority in partnership with the Tobacco Region Revitalization Commission will offer the loans, Gov. Glenn Youngkin's office announced Tuesday.
The Agricultural Disaster Microloan Program will provide loans of up to $50,000 to help farmers and owners of agricultural and forestry businesses recover from the storm's effects, from revenue loss to the repair and replacement of damaged equipment, according to the governor's office news release.
The loan fund of $6 million will be available to any small business in the agriculture and forestry industries within the counties of Appomattox, Albemarle, Bedford, Bland, Botetourt, Buchanan, Buckingham, Carroll, Charlotte, Craig, Dickenson, Floyd, Lee, Giles, Grayson, Greene, Madison, Montgomery, Nelson, Patrick, Pittsylvania, Pulaski, Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe; along with the cities of Bristol, Covington, Danville, Galax, Norton, Radford and Roanoke.
"Virginia Small Business Finance Authority's goal is to help small business owners succeed. We help local businesses access capital by making loans and supporting community banks," Virginia Small Business Finance Authority's Director Joe Shearin said in the release. "By partnering with the Tobacco Regional Revitalization Commission, we are making more resources available in the Southwest and Southside regions of Virginia."
The microloan program provides loans ranging from $5,000 to $50,000 to cover various disaster-related needs, including equipment repair, temporary loss of revenue, and other expenses directly resulting from Hurricane Helene, according to the release.
Loans are available with a fixed interest rate of 2.5%, with a reduced rate of 1.5% for veteran-owned businesses, and feature flexible terms of up to 36 months, including an interest-only period of up to 90 days or a single-pay loan option for up to 120 days. No fees are required, and all eligible applicants must have satisfactory credit, be in good standing with the State Corporation Commission, and have established their business before Oct. 1, 2022, according to the release.
Funds are allocated on a first-come, first-served basis and must be used for approved purposes, which include repairs, equipment replacement, and temporary revenue loss, while debt refinancing, real estate, and passive investments are ineligible.
The program is funded by $5 million from the Tobacco Region Revitalization Commission (TRRC) and $1 million from Virginia Small Business Finance Authority (VSBFA), available through an active MoU between the two entities, according to the release. TRRC funds are available exclusively to businesses located within the Commission's designated footprint communities and operating within a disaster-designated county or city in Virginia, while VSBFA funds are open to qualifying businesses outside of the Tobacco Commission Region within a disaster designated county or city in Virginia.
Applications will be accepted through Dec. 31. To apply and for more information on eligibility and application guidelines, visit the VSBFA website or contact VSBFA directly at sbsd.virginia.gov or calling (804) 786-1049.
