Fund your Virginia business

When your own money isn’t enough, start with a no-cost advisor, then ask which program actually lends. The Virginia Small Business Financing Authority is the financing arm of the Virginia Department of Small Business and Supplier Diversity. Some of its loans go straight to the business. Others sit beside a bank loan. Regular SBA loans come from a lender.

What’s different in Virginia

• One-on-one advising is no-cost. The Virginia Small Business Development Center (SBDC) Network offers no-cost, confidential, one-on-one consulting for people starting a business and for existing owners. Make an appointment.
• VSBFA is sometimes the lender. some VSBFA programs lend to the business directly, and others work alongside a commercial lender. The Microloan is the one that does not need a bank.
• The two named grants are narrow. One pays investors, not the business. The other pays for professional help while you apply for a capital program. Neither is a check for opening day.
• Two SBA offices split the state. Richmond covers 92 counties, and not Arlington, Fairfax or Loudoun counties or the cities of Alexandria, Fairfax and Falls Church. Arlington, Fairfax and Loudoun counties and the cities of Alexandria, Fairfax and Falls Church use the Washington Metropolitan Area District Office in Herndon.

Do this

1. Write down what you need and what it’s for. Equipment, inventory, a purchase of a business, and rent are different asks. The Microloan, for example, allows buying a business, equipment and fixed assets, and working capital, with some restrictions, and it does not allow construction, real estate the owner does not occupy, and refinancing debt.
2. Book no-cost advising. The Virginia SBDC advising page says the one-on-one consulting is no-cost, confidential, one-on-one consulting for people starting a business and for existing owners. The state’s guide to help also points you there for business planning, marketing, financial analysis, access to capital, operations and management, for people starting out and for existing businesses. Workshops and other training are not in that no-cost line.* Ask the center what a class costs before you sign up.
3. Use the SBA office for your address. The Virginia District Office in Richmond offers funding programs, counseling, federal contracting certifications, and disaster recovery for 92 counties, and not Arlington, Fairfax or Loudoun counties or the cities of Alexandria, Fairfax and Falls Church. If you are in Arlington, Fairfax and Loudoun counties and the cities of Alexandria, Fairfax and Falls Church, use the Washington Metropolitan Area District Office in Herndon.
4. Understand who lends the regular SBA loans. 7(a) and the other ordinary SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind.
5. Read the VSBFA loan list before you assume a bank has to be involved. The loan programs page says some VSBFA programs lend to the business directly, and others work alongside a commercial lender. The Microloan is a direct loan from VSBFA that does not require a bank to participate. Amounts go up to $150,000 for qualifying applicants, repaid over 5 to 7 years, with a $150 application fee. Eligibility: operating in Virginia, in good standing with the State Corporation Commission, a credit score of 650 or higher, and at least one of these: annual revenue of 10 million dollars or less for each of the last three years, net worth of 2 million dollars or less, or fewer than 250 employees. The Economic Development Loan is a companion loan that fills the gap between a bank loan and private equity, for fixed assets. Capital Connect is a loan participation program that lends alongside a small business loan a lender originates. Child care centers have a separate loan, up to $150,000, and the page says no interest or loan fees at this time. VSBFA is not a bank, and not every business qualifies for every program. Read the program documents before you apply.
6. Read the grant page the same way. The grant programs page names two. The Small Business Investment Grant goes to eligible investors who have invested in an eligible Virginia small business, not the business itself. The fiscal year 2026 application period is closed. Check the site for a fiscal year 2027 update. Technical Assistance Grants pay for legal, accounting and financial advisory services, and they are for selected very small businesses and businesses owned and controlled by socially and economically disadvantaged individuals, when they are applying for an SSBCI capital program or another small business funding program. The grants are competitive, and not guaranteed. Be wary of anyone selling access to a guaranteed grant.
7. Keep your paperwork ready. Lenders, VSBFA and advisors ask for your formation documents and EIN. The Microloan also wants good standing with the State Corporation Commission: Register your business and Get your tax IDs.
8. After a declared disaster, the SBA can lend directly. Disaster assistance covers several kinds of loan, including physical damage, economic injury and military reservist economic injury, for a declared disaster, and only if you qualify. A disaster by itself does not qualify you. Check the declaration and the loan type before you apply.

What you get back

An appointment with an advisor, and help preparing what a lender or VSBFA asks for. A loan decision comes only if you qualify, from VSBFA on a direct program or from a lender on the others. These pages do not promise a finished plan or an approval.