Loan Guaranty Program

The Loan Guaranty Program is designed to reduce the risk to banks in making loans, thus increasing the availability of short-term capital for small businesses.

The Virginia Small business Financing Authority (VSBFA) will guarantee 75% of a bank loan, up to $500,000. Typical borrowings include revolving lines of credit to finance accounts receivable and inventory, and short-term loans for permanent working capital and fixed-asset purchases, such as office or research equipment.