Virginia offers disaster loans to support agricultural businesses recovering from Hurricane Helene

Richmond, Virginia – Governor Glenn Youngkin announced a new financial relief initiative for agricultural and forestry businesses affected by Hurricane Helene in Southwest Virginia. In partnership with the Tobacco Region Revitalization Commission (TRRC), the Virginia Small Business Finance Authority (VSBFA) will offer disaster loans to eligible farmers and small businesses as part of the Agricultural Disaster Microloan Program.

The program, designed to assist in recovery from the storm’s effects, offers loans up to $50,000 to support farmers and businesses in addressing temporary revenue loss, repairing equipment, or replacing damaged machinery. The loan fund of $6 million will be distributed to eligible businesses in impacted counties and cities.

Helping Farmers Rebuild and Thrive

“Virginia’s farmers and forestry professionals are the backbone of our economy,” said Governor Youngkin. “Through the Agricultural Disaster Microloan Program, we’re ensuring that these vital industries have the resources they need to rebuild. This program is a crucial step in our ongoing efforts to restore and revitalize the communities hardest hit by Hurricane Helene.”

The program will cover a wide range of disaster-related needs, including repairs, equipment replacement, and loss of revenue. Affected businesses across multiple regions can access flexible financing options to ease the recovery process.

Support for Southwest Virginia’s Communities

Matthew Lohr, Secretary of Agriculture and Forestry, emphasized the importance of these businesses to local economies. “Virginia’s agriculture and forestry businesses provide a critical foundation for local communities and our economy as a whole throughout Southwest Virginia. With this microloan program, we are offering small loans to farmers facing extraordinary challenges from Hurricane Helene. This initiative underscores our commitment to helping Virginia’s agricultural and forestry sectors not only survive but rebuild stronger than ever.”

Delegate Will Morefield, Vice-Chair of the TRRC, also praised the program, stating, “Our producers are the foundation of our communities, and we need to do everything we can so they can get back to doing what they do best: helping our communities grow and thrive.”

Loan Terms and Conditions

The Agricultural Disaster Microloan Program offers loans ranging from $5,000 to $50,000, with competitive interest rates and flexible repayment options. Key features of the program include:

• Interest Rates: Fixed at 2.5%, with a reduced 1.5% rate for veteran-owned businesses.
• Loan Terms: Up to 36 months, with an interest-only period of up to 90 days or a single-pay option for up to 120 days.
• No Fees: Applicants are not required to pay application or processing fees.
• Eligibility: Businesses must have been established before October 1, 2022, maintain satisfactory credit, and be in good standing with the State Corporation Commission.

Funds are available on a first-come, first-served basis, with TRRC funds reserved for businesses within the Commission’s designated communities. VSBFA funds will also support qualifying businesses located outside the TRRC’s footprint but within other disaster-affected counties or cities.

Application Process and Deadlines

Eligible businesses can apply for the program through December 31, 2024. Applications and detailed guidelines are available on the VSBFA website or by contacting VSBFA directly at (804) 786-1049.

The program is supported by $5 million in TRRC funding and $1 million from VSBFA, ensuring a broad reach to businesses impacted by Hurricane Helene. These funds aim to help affected farmers and forestry businesses recover quickly and continue contributing to their communities.

A Collaborative Effort for Economic Recovery

Joe Shearin, Director of the Virginia Small Business Finance Authority, underscored the importance of the partnership between the VSBFA and TRRC. “By partnering with the Tobacco Region Revitalization Commission, we are making more resources available in the Southwest and Southside regions of Virginia.”

This program is expected to provide critical financial support to local businesses, helping them recover from the storm’s effects and sustain their operations. As Virginia continues to rebuild, the initiative represents a collaborative effort to promote economic stability and ensure that agriculture and forestry businesses remain strong pillars of the state’s economy.

For more information or to begin the application process, visit the VSBFA disaster relief website at https://sbsd.virginia.gov/disasterrelief/.