SWaM Forms and Governing Regulations
The SWaM certification program is administered by the Virginia Department of Small Business and Supplier Diversity (“DSBSD”) and is the Commonwealth of Virginia’s effort to help small, women- and minority-owned businesses with doing business with state government entities.
Applicants to the SWaM certification program must complete the on-line application for certification and provide the required documents with the application to be considered for certification as a Small, Women- or Minority-owned Business.
Key Laws and Regulations:
Chapter 20. Regulations to Govern the Certification of Small, Women-Owned, and Minority-Owned Businesses
Chapter 16.1. Department of Small Business and Supplier Diversity
Disadvantaged Business Enterprise Forms
Virginia Small Business Financing Authority (VSBFA) Forms
Direct Loan Programs
Economic Development Loan Fund
A companion loan for fixed asset financing needs designed to fill the financing gap between the bank’s loan and private equity. In these transactions, the business client has two loans, one from the bank and one from the VSBFA. Where warranted, the VSBFA will consider being in a subordinate position to the bank and can sometimes offer more flexible terms in order to help the business’ temporary cash flow needs.
SWaM Business Loan Fund
This is a direct loan from the VSBFA to the business client that does not require a bank’s participation in the transaction. It is an ideal tool for bankers who are faced with business loan requests for very small amounts where the bank would prefer to refer the client to an alternative source of funds.
Child Care Financing Program
This is a direct loan from the VSBFA to a child care center or a family home provider. Bank participation is not required, though often times the bank will provide financing for the center’s land and building and the VSBFA can provide a loan for the other necessary items the center needs such as cots, fencing, playground equipment, buses, etc.
Credit Enhancement Programs
SSBCI Cash Collateral Program
Most typically used in those situations where the business loan applicant has the demonstrated ability to cash flow the debt, but the collateral coverage is insufficient for the bank’s normal underwriting standards. This program can be used for lines of credit or term loans.
Loan Guaranty Program
This is a traditional deficiency guaranty of a bank loan. It can be used for lines of credit or term loans any time the bank believes it needs additional support in order to approve a business loan request.
SSBCI Capital Access Program
This program provides loan loss insurance to a bank to cover a portfolio of enrolled loans. It is designed to be a quick, efficient means of obtaining a credit enhancement from the VSBFA. Under most circumstances, the bank determines whether or not a loan will be enrolled in the program without VSBFA’s involvement.
Private Activity Bond Issuances for Qualifying Manufacturers & 501(c) (3) Non-Profits
For those manufacturers and 501 (c) (3) non-profits which qualify for tax-exempt financing. Business owners who are unsure as to whether their business and their financing need qualify for tax-exempt bond financing should contact a qualified bond attorney before applying. Most local economic and industrial development authorities can issue bonds as well.
Small Business Investment Grant Program
Beginning July 15th, 2019, applications will be accepted for Fiscal Year 2020 grants under the Small Business Investment Grant Program.
The application process requires a completed application and supporting documentation from the Virginia small business in which the investment was made and a completed application with supporting documentation from each investor applying for the grant. An application is not deemed to be received until both a small business and an investor application have been received
Complete applications for the Fiscal 2020 Small Business Investment Grant Program will be processed on a first-come, first-serve basis and will close, without additional notice, once grant funds have been exhausted.