The Agricultural Disaster Microloan Program will provide financial assistance to Virginia small businesses affected by Hurricane Helene. The program provides loans of up to $50,000 to help farmers and agricultural and forestry business owners recover from the effects of the storm, from lost income to repairing and replacing damaged equipment.
The $6 million loan fund will be available to any small business in the agriculture and forestry industry within the counties and cities of: Appomattox, Albemarle, Bedford, Bland, Botetourt, City of Bristol, Buchanan, Buckingham, Carroll, Charlotte , City of Covington, Craig, City of Danville, Dickenson, Floyd, City of Galax, Lee, Giles, Grayson, Greene, Madison, Montgomery, Nelson, City of Norton, Patrick, Pittsylvania, Pulaski, City of Radford, City of Roanoke , Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe.
“Virginia’s farmers and forestry professionals are the backbone of our economy, and their resilience has always been a testament to the strength of our Commonwealth,” said Governor Glenn Youngkin. “Through the Agricultural Disaster Microloan Program, we are 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.”
“Virginia’s agricultural and forestry businesses provide a critical foundation for local communities and our economy as a whole throughout Southwest Virginia,” said Secretary of Agriculture and Forestry Matthew Lohr. “With this microcredit program, we are offering small loans to farmers who are facing extraordinary challenges from Hurricane Helene. This initiative underscores our commitment to helping Virginia’s agriculture and forestry sectors not only survive, but rebuild stronger than ever.”
“Agriculture is central to our economy, and I have seen firsthand the impact that Hurricane Helene had on our agricultural and forestry community,” said Tobacco Commission Vice Chairman Delegate Will Morefield. “For many people, recovery will take years, but I am proud that the Tobacco Commission is able to stand by them in this time of need by providing these loans to help them get back on their feet. Our producers are the foundation of our communities and we need to do everything we can so they can get back to what they do best: help our communities grow and thrive.”
“The goal of the Virginia Small Business Finance Authority is to help small business owners succeed. We help local businesses access capital by providing loans and supporting community banks,” said Virginia Small Business Finance Authority Director Joe Shearin. “By partnering with the Regional Tobacco Revitalization Commission, we are making more resources available in the southwest and southern Virginia regions.”
The Agricultural Disaster Microloan Program provides loans ranging from $5,000 to $50,000 to cover various disaster-related needs, including equipment repair, temporary loss of income and other expenses directly resulting from Hurricane Helene. Loans are offered at a fixed interest rate of 2.5%, with a reduced rate of 1.5% for veteran-owned businesses, and have flexible terms of up to 36 months, including an interest-only period of up to 90 days or a payment option loan up to 120 days. No fee is required and all qualified applicants must have satisfactory credit, be in good standing with the State Corporation Commission and have established their business before October 1, 2022. Funds are allocated on a first-come, first-served basis. first and must be used for approved purposes, which include repairs, equipment replacement and temporary loss of income, while debt refinancing, real estate and passive investments are ineligible.
The program is funded by $5 million from the Tobacco Region Revitalization Commission (TRRC) and $1 million from the Virginia Small Business Finance Authority (VSBFA), available through an active MOU between the two entities. TRRC funds are available exclusively to businesses located within Commission-designated communities and operating within a disaster-designated county or city in Virginia, while VSBFA funds are open to qualifying businesses outside the Tobacco Commission Region within a designated disaster county or city in Virginia.
Applications for the Agricultural Disaster Microloan Program will be accepted until December 31, 2024. To apply and for more information on eligibility and application instructions, visit VSBFA’s website or contact VSBFA directly at https://sbsd.virginia .gov/disasterrelief/ or by calling (804) 786-1049.