Incentives

The Commonwealth of Virginia offers many incentives for small businesses and small business owners.

State of Virginia Business Incentives

Small Business New Jobs Program

The Small Business New Jobs Program supports Virginia companies which have 250 employees or fewer company-wide. In order to qualify for assistance, a company must be:

  • Creating at least five net new full-time jobs within 12 months from the date of the first hire.
  • Making a new capital investment of at least $100,000 associated with the start-up or expansion.
  • Paying an entry-level wage rate of at least $9.79 per hour. In areas that have unemployment of one and a half times or more than the state level, this wage minimum may be waived.
  • Only full-time jobs are eligible for funding, and no funds shall be awarded for any positions created solely as the result of a merger or acquisition, or similar business combination unless such new full-time positions are relocated from outside Virginia.

Workforce Retraining Program

The Workforce Retraining Program provides support for Virginia companies that are upgrading the skills of their existing workforce. Participating companies must demonstrate that they are undergoing integration of new technology into their production process, a change of product line in keeping with marketplace demands, or substantial change to their service delivery process that would require assimilation of new skills and technological capabilities by their existing labor force. 

Governor’s Agriculture and Forestry Industries Development Fund

The Governor’s Agriculture and Forestry Industries Development Fund (AFID) is a tool for communities within the Commonwealth to grow their agriculture and forestry industries through strategic grants made to businesses that add value to Virginia-grown agricultural and forestal products. AFID grants are made at the discretion of the Governor with the expectation that grants awarded to a political subdivision will result in a new or expanded processing/value-added facility for Virginia grown agricultural or forestal products, and with the expectation that the grant will be critical to the success of the project. The amount of an AFID grant and the terms under which it is given are determined by the Secretary of Agriculture and Forestry and subject to the approval of the Governor.

Economic Development Access Program

Administered by the Virginia Department of Transportation, this program assists localities in providing adequate road access to new and expanding manufacturing and processing companies, research and development facilities, distribution centers, regional service centers, corporate headquarters, government installations, and other basic employers.

Virginia Small Business Finance Authority

The Virginia Small Business Financing Authority (VSBFA) is the Commonwealth of Virginia’s business and economic development financing arm.  Aligned within Virginia’s Department of Small Business and Supplier Diversity, the VSBFA offers programs to provide businesses, not-for-profits, and economic development authorities with the financing needed for economic growth and expansion throughout the Commonwealth.  To accomplish this goal, we offer loans directly to businesses & non-profits, credit enhancements to banks that are lending to businesses & non-profits, as well as bond financings to benefit for-profit businesses, 501 (c) (3) not-for-profit entities, and to support clean energy and P3 transportation projects.  We also help small businesses seeking to attract equity investments by providing an equity incentive grant program.