Governor Warner Announces $1.1 Million in Small Business Loans and Loan Guarantees
Governor Warner Announces $1.1 Million in Small Business Loans and Loan Guarantees
Funding Supports Nearly 100 New Jobs in Six Localities
Governor Mark R. Warner today announced the approval of more than $1.1 million in financing and assistance to aid in the creation of nearly 100 new jobs across the Commonwealth. The Virginia Small Business Financing Authority (VSBFA) approved the funding at a recent board meeting.
"Small businesses are major contributor to Virginia's economy," said Governor Warner. "These loans are an important source of capital to help viable small businesses get off the ground and succeed in Virginia."
Hill Mandolins, Inc., a start-up manufacturer of hand-made mandolins in Dickenson County, was approved for a $35,700 direct loan through VSBFA's Virginia Economic Development Loan Fund. The Virginia Coalfield Economic Development Authority also made a $35,700 direct loan to the company. Hill Mandolins, Inc. will use the funds as working capital to purchase equipment, start a new manufacturing studio, and create four new jobs.
Prototype Productions, LLC, a manufacturer specializing in prototype development, project management and building design in Loudon County, was approved under the VSBFA's Loan Guarantee Program (LGP). The company received a 75 percent guarantee - up to $300,000 of a $600,000 working capital line of credit through Access National Bank, to make inventory purchases and support work-in-progress. The company expects to create 60 new jobs within two years.
The VSBFA also approved a 75 percent loan guaranty through the LGP - up to $187,500 of a $250,000 term loan through Cardinal Bank, for Sun Dog Productions, LLC, a hand-dyed casual wear manufacturer in Fairfax County. The loan will support leasehold improvements for the company's new, expanded location on Main Street in Fairfax. The company expects to create 25 news jobs within two years.
Magnox Acquisition Inc. in Pulaski County received a $500,000 direct loan through the Virginia Economic Development Loan Fund. VSBFA partnered with SunTrust Bank, who approved a $2,000,000 term loan for the company. The company will use the funds to expand development, marketing and sales of its nanoparticle products. The company expects to create 10 new jobs.
The VSBFA approved a $90,000 loan for Shin Family, LLC, Alexandria, and a $40,000 loan for Suffolk Quality Cleaner, Suffolk. Both are dry cleaning operations that were approved for direct loans through the Environmental Compliance Assistance Fund through the Department of Environmental Quality. The loans will be used for the purchase of new, more environmentally-friendly dry cleaning machines.
The VSBFA also approved an inducement resolution for the issuance of a $6,500,000 tax-exempt bond for Southern Virginia University in Buena Vista to assist the University in expanding its educational programs and its student housing facilities.
The Department of Business Assistance (DBA) manages the VSBFA loan program. DBA provides access to capital, incentives for workforce training, small business incubator assistance, and business problem solving through the Virginia Business Information Center. For more information about VSBFA loan programs, please visit the DBA Web site, or call (804) 371-0438 or (866) 248-8814; you may also write for more information to VBIC@dba.virginia.gov.
http://www.governor.virginia.gov/Press_Policy/Releases/2005/Jun05/0615.htm