There are plenty of reasons to relocate or expand your business in Virginia Beach – not the least of which is all the help you get from the City of Virginia Beach and the Commonwealth of Virginia.

City Incentives

Economic Development Investment Program (EDIP)

The Virginia Beach Development Authority can provide EDIP funds to qualifying businesses that are locating to or expanding in the city. The EDIP was established to support projects that create new jobs and capital investment in Virginia Beach. EDIP monies may be used for allowable infrastructure improvements and certain other project purposes, which will help to reduce the costs of relocating and expanding in our community. For more specifics on the EDIP, download this PDF.

Fast-Track Permitting Program

Fast-tracking streamlines permitting and construction so custom office buildings and industrial facilities can be built and operational in as little as six months. This is at least 50% less time than the typical non-fast-track construction time of 12 to 18 months or more. The Department of Economic Development will also assist fast-track companies in locating and setting up temporary training facilities at our Advanced Technology Center during construction so business operations can begin simultaneously with the move-in date.

Commonwealth of Virginia Incentives

In addition to the many incentives offered by the City of Virginia Beach, the Commonwealth of Virginia also offers a number of business incentives. To support a pro-business environment, Virginia offers many incentives to assist business growth and encourage startups.  These incentives include financial assistance, facilities development grants, tax credits and exemptions.  In addition to financial incentives, Virginia also offers work-force training and technical support programs. For more information, refer to the Virginia Guide to Business Incentives (PDF).

For information on Bio specific incentives from the Commonwealth of Virginia, visit the Virginia Bio Incentive Portal.

Corporate Income Tax Incentives

The Virginia corporate income tax rate is a flat 6 percent; however, the sales factor in the state’s income apportionment formula is double weighted, benefiting companies with high payrolls and property in Virginia.

Sales and Use Tax Exemptions

Virginia has one of the lowest sales tax rates in the country – 6 percent (4.3 percent state, 1 percent local, 0.7 percent transportation). There are some exemptions, such as items purchased for resale or used in manufacturing, pollution control devices, purchases used in research and development, and charges for utilities and Internet access.

Contact

Virginia Department of Taxation
P.O. Box 115
Richmond, VA 23218
(804) 367-8037
www.tax.virginia.gov

Virginia Jobs Investment Program

The Virginia Department of Business Assistance’s Jobs Investment Program provides an economic development incentive for business relocation and expansion projects – working with Virginia businesses to provide customized recruiting and training programs. Small businesses may also qualify for training and retraining programs. The Small Business New Jobs Grant Fund provides grants ranging from $500 to $2,000 to small businesses creating at least five new jobs within a 12-month period.

Contact

Virginia Department of Business Assistance
1220 Bank Street
3rd Floor South
Richmond, VA 23219
(804) 371-8120
www.vdba.virginia.gov

Business Information Services

Virginia Business One Stop is an interactive portal designed to accelerate business formation and provide information for existing businesses. The online registration system will walk a potential business owner through each step needed to establish their new business. In addition, BOS helps existing businesses expand. The tool streamlines business-registration paperwork across seven agencies.

Worker Retraining Tax Credit

Employers can receive tax credits for 30 percent of expenditures on worker retraining programs for qualified employees. The credit is capped at $2.5 million in a taxable year. Eligible programs include courses at Virginia community colleges certified by the Virginia Department of Business Assistance, or apprenticeship agreements certified by the Virginia Apprenticeship Council. For more information, visit the Virginia Department of Business Assistance website.

Green Job Creation Tax Credit

This tax credit for “green” companies awards an annual tax credit of $500 for each salary that is $50,000 or more for up to 350 jobs. The credit is allowed in the first taxable year after the job has been filled for at least one year and in each of the four succeeding years. Green jobs are related to the field of renewable, alternative energies.

Technology Zones

Jurisdictions in Virginia can establish technology zones to attract targeted industries. Qualified businesses locating or expanding in a zone receive local permit and user fee waivers, local tax incentives, special zoning treatment or exemptions from ordinances. Once a zone is established, the incentives can be provided for up to 10 years. Each locality administers its own program.

Commonwealth Opportunity Fund

This “deal-closing” fund is used when Virginia faces competition for a major investment in Virginia. The grant is given to a locality for the benefit of the company. It can be used for projects such as site acquisition, expansion of broadband capacity, training or construction of buildings.

Contact

Virginia Economic Development Partnership
P.O. Box 798
Richmond, VA 23218-0798
(804) 545-5610
www.YesVirginia.org

Center for Innovative Technology

CIT helps grow Virginia’s technology industry. Its CIT Entrepreneur program provides up to $100,000 in funding for promising high-growth technology companies and helps owners identify potential equity investors.

Contact

Center for Innovative Technology
2214 Rock Hill Road, Suite 600
Herndon, VA 20170-4228
(703) 689-3000
www.cit.org

Virginia Small Business Financing Authority (VSBFA)

VSBFA “small business” definition: 

  1. Must be operating in Virginia, and licensed/good standing with State Corporation Commission, local, or other licensing authority
  2. Meet ONE of the following:  Under $10M annual revenues or under $2 million tangible net worth or have less than 250 Virginia employees (some programs also require less than 750 total employees), or be a 501c3.

All real estate loans are “owner occupied commercial real estate.” No investment or residential.

VSBFA Direct Loan Programs

VSBFA makes a loan directly to Borrower typically either subordinate to the bank or secured by separate assets. Borrower applies directly to VSBFA which underwrites, closes, and manages the credit.

Economic Development Loan

  • Maximum 40% of total project cost not to exceed $500,000
  • For real estate and improvements, furniture/fixtures/equipment, permanent working capital
  • $500 application fee, recent fixed rate 4%
  • Start up or existing business
  • Focus on acceptable job creation/retention relative to loan amount

Micro-loan

  • Maximum $10,000 -25,000
  • 48 month repayment
  • $100 fee, 6.25% fixed rate
  • Any business purpose other than investment real estate
  • Must have been operational at least 2 years
  • Owners’ credit scores must be at least 650 each

Child Care Loan

  • Maximum $150,000 per location for centers, $10,000 for home based providers
  • 60 month repayment
  • Borrower must be licensed and in good standing with Virginia Department of Social Services.
  • Funds materials, equipment, supplies,  playground, mini-buses, fencing
  • $100 application fee, 4% fixed rate

Bank Credit Support Programs

Bank underwrites/commits to loan subject to VSBFA involvement.

Cash Collateral-VSBFA pledges cash collateral to the bank to help back a business loan

  • Maximum $500,000 or 40% of the loan amount, whichever is less.
  • Maximum involvement—5 years for term loans, 3 years for credit lines
  • Cost  $200 application fee

Loan Guaranty-VSBFA provides an additional guaranty to the bank

  • Maximum 75% of the loan amount or $750,000, whichever is less
  • Maximum involvement-7 years for term loans, 5 years for credit lines
  • Cost $200 application fee, 1.5% of the guaranteed amount due at closing

Loan Participation-VSBFA buys a portion of a bank loan

  • Maximum $500,000 or 40% of the loan amount, whichever is less.
  • Maximum hold period 10 years
  • $500 application fee, VSBFA receives same interest rate as Bank

All VSBSFA Programs

  • Response time once VSBFA has received all required information: 1 week if VSBFA exposure is no more than $500,000 approximately 1 month if VSBFA exposure exceeds $500,000
  • Existing companies must have history of profitable operations and satisfactory debt payment.
  • Startups must have business plans and projections.
  • VSBFA requires guarantees & pledge of all available business and personal collateral.
  • Minimum 10% cash equity expected for startups, more for existing businesses.
  • VSBFA programs cannot be used to compensate for fundamental business weakness.
  • No prepayment fees or closing costs aside from direct transaction costs.

Regarding the Virginia Small Business Loan Programs contact:

Mary Jo Sisson-Vaughan, Regional Lending Manager
Hampton Roads, Southern VA, Central VA Areas
(804) 371-8184
maryjo.sissonvaughan@sbsd.virginia.gov