Virginia small business grants, SSBCI loans and training funds (2026)

Virginia’s five SSBCI programs and who runs them

Treasury’s January 2026 summary shows Virginia running five SSBCI programs worth $230.4 million in total ⁠¹. VSBFA administers the three debt programs and VIPC administers the two equity programs.

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None of this is grant money. Every dollar is either a loan you repay, a deposit that backs a loan you repay, or an investment that takes equity in your company. The Loans to CDFI Program lends $500,000 to $5 million to certified community development financial institutions, which then make and service their own small business loans ⁠¹. If a bank turns you down, ask a CDFI whether it lends with VSBFA funds.

How VSBFA’s cash collateral fills a bank’s shortfall

The Cash Collateral Program (CCP) is for a business that can afford the payments but lacks the collateral a bank needs. VSBFA deposits cash into an interest-bearing reserve account at the bank. The deposit can equal up to 40% of the bank’s loan or $1,000,000, whichever is less, and it lasts for up to five years even if the loan runs longer ⁠². Loans over $20,000,000 cannot be supported, and the bank’s rate is capped at 18% ⁠².

You do not apply to VSBFA. You apply to a Virginia bank that is eligible to hold Virginia public deposits, and the bank asks VSBFA for support. VSBFA usually approves or declines within a week of getting a complete file ⁠². To qualify, a business must have fewer than 250 employees in Virginia and fewer than 750 nationwide. Eligible uses are working capital lines, equipment and fixed-asset loans, and owner-occupied real estate. Goodwill, passive real estate, residential real estate and stock purchases are excluded ⁠². VSBFA has waived the $200 application fee and the one-time support fee while federal funds last ⁠². The program does not replace a personal guaranty. VSBFA also runs an older Classic Loan Guaranty Program, a deficiency guaranty for bank lines and term loans, and banks enroll loans in it the same way ⁠⁵.

VSBFA loans you apply for yourself

Microloan Program. This is a direct VSBFA loan of up to $150,000, with no bank involved. Terms run 5 to 7 years, and payments are drafted automatically each month ⁠⁴. You must already operate in Virginia, be in good standing with the State Corporation Commission and have a credit score of 650 or higher. You must also meet at least one size test: $10 million or less in annual revenue in each of the last three years, a net worth of $2 million or less, or fewer than 250 employees ⁠⁴. You can use it for buying a business, equipment and working capital, but not for construction, investment real estate or refinancing. The application fee is $150 and is nonrefundable ⁠⁴.

Capital Connect Program. VSBFA makes a fixed-rate loan next to a private lender’s loan on the same project, for fixed assets and owner-occupied real estate ⁠³. The two official descriptions give different caps. VSBFA’s August 2024 fact sheet says up to $1,000,000 or 40% of project costs ⁠³. Treasury’s January 2026 summary says the lesser of 50% of the project or $2.5 million ⁠¹. Ask VSBFA which cap applies before you size your request. Loans amortize over up to 25 years with a term under 10 years. Owners of more than 20% must sign personal guarantees, and the $500 application fee is waived for now ⁠³.

Child Care Financing Program. Licensed or certified child care centers can borrow up to $150,000 over 7 years, or up to $250,000 over 10 years. Family day homes can borrow up to $15,000. VSBFA currently charges no interest or loan fees, only a $125 or $75 application fee ⁠⁴. This is still a loan you repay, and the money is limited to health, safety and learning equipment and minor upgrades.

VIPC’s grants and equity for technology startups

VIPC’s Launch Grant is the closest thing Virginia has to a startup grant, and it is built for technology companies. It pays $50,000 to Virginia companies that have not yet built a minimum viable product. You need a 1:1 match in non-dilutive money or in-kind contributions ⁠⁸. You cannot have raised angel or venture money, though up to $300,000 from friends and family is allowed if it came in at least 90 days before you apply. VIPC reviews applications quarterly and expects to make only 40 to 60 awards a year, and Cycle 7 was accepting applications in October 2026 ⁠⁸. Lab-to-Launch grants of up to $50,000 go to startups licensing technology from one of Virginia’s six R1 universities under the Fast-Track License, with applications accepted year-round ⁠⁹.

Past the grant stage, Virginia Venture Partners makes investments rather than grants: Launch Notes with a typical check of $150,000, pre-seed checks of $250,000, and seed checks of $500,000 to $1 million ⁠⁸.

Virginia has no state match for winning a federal SBIR or STTR award. Instead, VIPC’s Federal Funding Assistance Program offers training and, for select companies seeking their first Phase I or II award, help paying for proposal consultants, software, IP legal advice and accounting ⁠⁹.

Training and hiring grants through VEDP

The Virginia Jobs Investment Program (VJIP) reimburses recruiting and training costs for companies that bring in money from outside Virginia, meaning at least 51% of revenue ⁠¹⁰. Two tracks are for companies with 250 or fewer employees:

• Small Business New Jobs Program: at least five net new full-time jobs within 12 months of the first hire, plus at least $100,000 in new capital investment ⁠¹⁰.
• Small Business Retraining Program: at least five full-time employees retrained in connection with at least $100,000 of new capital investment within 12 months. It is funded only when the annual VJIP budget allows ⁠¹⁰.

VEDP does not publish a per-job amount. A business manager builds a custom budget based on wages compared with the local prevailing average wage, local distress and the size of the investment. Projects usually run 36 months, and VEDP pays 90 days after each hire or after retraining ends ⁠¹⁰. VJIP will not approve a project that has already been announced publicly, so talk to VEDP before you announce. The Commonwealth’s Development Opportunity Fund is a different program. It is a deal-closing grant paid to a locality for projects with at least 50 jobs and $5 million in investment (15 jobs and $1.5 million in double-distressed localities), so it does not fit most small firms ⁠¹⁵.

Export money through VEDP International Trade

Virginia’s STEP grant is run by VEDP and funded through a cooperative agreement with the SBA. For federal fiscal year 2026, Virginia received $726,450 in federal funds and added $242,147 of its own, for a total of $968,597 ⁠¹¹. VEDP spends it through its own programs rather than a single open application. The Trade Show Program reimburses part of the cost of exhibiting at overseas trade shows, or US shows with an international component. VALET is a two-year export accelerator that takes up to 30 companies a year ⁠¹¹. VEDP says benefits change each year with federal grant rules and does not post a per-company cap, so ask the trade team for the current reimbursement limit before booking.

Pitch-contest and regional grants

Community Business Launch (CBL). The Department of Housing and Community Development (DHCD) does not grant to businesses directly. It funds a locality, Main Street group or chamber, which runs a free business course of at least six weeks and then a pitch competition. At least half of each award must go to winners as cash prizes ⁠¹². For FY 2027, DHCD had $180,000 in total, with up to $60,000 per community. Applications from local organizations closed June 17, 2026 ⁠¹². Winners must open or expand inside the target district and report annually for three years, and nonprofits cannot win prize money. Ask your town or county economic development office whether it is running a CBL round.

VCEDA Seed Capital Matching Fund. In Southwest Virginia’s coalfield counties (Buchanan, Dickenson, Lee, Russell, Scott, Tazewell and Wise, plus the City of Norton), VCEDA grants up to $10,000. The business must be no more than one year old, have fewer than 10 full-time employees and plan at least one full-time job within a year ⁠¹³. You need a dollar-for-dollar match and a letter of support from your county industrial development authority. You start through the SBDC at Mountain Empire Community College or Southwest Virginia Community College, and VCEDA usually reviews applications twice a year ⁠¹³.

Small Business Investment Grant (SBIG). This grant pays Virginia-taxpaying individual investors the lesser of 25% of a qualified investment or $50,000. Each investor can receive up to $250,000 in their lifetime ⁠⁷. The FY 2026 round covered investments made from July 1, 2023, through December 31, 2025, and is now closed. SBSD says to check back for FY 2027 ⁠⁶⁠⁷. It can help you raise money from local investors, but the check goes to them, not to you.

A Virginia financing sequence, step by step

1. Book a free Virginia SBDC appointment

   The SBDC offers no-cost one-on-one advising from startup onward ⁠¹⁴. Bring a business plan, two years of tax returns or projections, a personal financial statement and the amount you need. Ask whether a CDFI using VSBFA funds lends in your area.

2. Ask your bank about VSBFA cash collateral before you accept a no

   If the bank’s issue is collateral, ask it to call VSBFA about the Cash Collateral Program or the Classic Loan Guaranty ⁠²⁠⁵. Your bank files the lender application. VSBFA usually decides within a week of a complete file ⁠².

3. Apply directly for a Microloan if you do not need a bank

   Download the Microloan application and personal financial statement from SBSD’s loan page, check that your credit score is 650 or higher, and include the $150 fee ⁠⁴. For a co-loan alongside a bank on equipment or real estate, email [email protected] about Capital Connect and confirm the current cap ⁠³.

4. Tech founders: apply to VIPC’s Launch Grant cycle

   Have your 1:1 match lined up and confirm you have not raised angel or venture money. Send questions to [email protected] ⁠⁸. If you are writing a first SBIR or STTR proposal, ask VIPC’s Federal Funding Assistance Program about proposal-cost help ⁠⁹.

5. Hiring five or more full-time staff? Call VEDP before you announce

   Have your job count, wages, capital investment budget and the share of revenue from outside Virginia ready for a VJIP eligibility review ⁠¹⁰.

6. Exporters: contact VEDP International Trade before booking a show

   Ask about the Trade Show Program, VALET and this year’s STEP reimbursement limits ⁠¹¹.

7. Check local programs

   Ask your locality whether it runs a Community Business Launch ⁠¹². In the coalfield counties, ask your SBDC about a VCEDA seed grant ⁠¹³.

8. If you are turned down, ask why and try again

   A VSBFA or bank decision is a credit decision, so ask what was missing (collateral, cash flow or credit score) and fix it. A CDFI may also be an option ⁠¹. Launch Grants and CBL prizes are competitive, so ask for reviewer feedback and enter the next cycle ⁠⁸⁠¹².

For other Virginia help, see the Virginia overview, or compare states on the small business grants hub.