Virginia Enterprise Initiative
Entrepreneurship Assistance
Virginia Enterprise Initiative (VEI) grants are available through a competitive application process. A selected community-based nonprofit can request up to $53,000 in grant funding to use toward administrative or credit enhancement activities.
Each VEI program site must offer the four program components to their clients. The four program components are training (business plan development training and business skills training), one-on-one technical assistance, microloans, and follow-up or post loan technical assistance.
VEI program site selection is a competitive process. The applicant must, at a minimum, demonstrate to the Virginia Department of Housing and Community Development (DHCD) the organizational capacity to administer the program and leverage additional funding to support the operation of their program.
For every dollar requested by the nonprofit site, there is a matching funds requirement. The match requirement for VEI funding is a 4-to-1 VEI to non-VEI funds ratio for administrative funds, and a 1-to-3 VEI to non-VEI funds match for funds used toward a loan fund, loan loss reserve account or credit enhancement activities.
Typically, matching funds for VEI program sites are developed from partnerships with local governments and universities, the federal Small Business Administration, other nonprofits, and banks.
VEI for Entrepreneurs:
The VEI program promotes microbusiness development by providing an opportunity for low-income individuals, women and minority entrepreneurs to gain business skills training and access to credit. VEI supports Virginia’s microbusiness entrepreneurs by funding nine sites across the commonwealth that offer:
- Training (Business Plan Development Training and Business Skills Training)
The VEI site will assess the needs of a client and will direct him/her toward appropriate training (business skills training or business plan development training). Training is customized for each individual and must be affordable for disadvantaged populations.
- Business Plan Development Training
Through multi-day sessions, business principles are covered by qualified trainers with expertise in microenterprise development. Entrepreneurs are provided with a foundation of the skills needed to operate a business through a series of sessions covering a range of topics including bookkeeping, marketing, finance, insurance and staffing. At the conclusion of the scheduled courses, the entrepreneur will have a completed business plan, will be ready for additional technical assistance, and/or will be prepared to request a microloan.
- Business Skills Training
Single-session group trainings are offered to entrepreneurs covering specific topics such as marketing, finance, or personnel development. This training assists an entrepreneur who may be in the nascent stage of a business idea, and may only be interested in a specific topic, or an entrepreneur who may have a business plan in place but needs additional exposure to a particular topic.
- One-on-One Technical Assistance
Once instruction is completed, participants will need to evaluate their business concept. This is done with counseling from the microenterprise program that guides the entrepreneur through the business planning process. If the concept proves to be feasible, the entrepreneur will be assisted in preparing documents to package a loan proposal.
- Microloans
Microloans are provided to participants in a microenterprise program to finance their business. The amount of an individual microloan cannot exceed $35,000. Typically, microloans range from $3,000 to $10,000. Loan approval and repayment terms are decided by each VEI site’s loan review committee, which includes program staff, bank partners, and interested citizens from the community.
- Follow-up Assistance
There are many challenges that face microbusinesses, especially those just starting. Microenterprise programs must continue assistance to its participants once they are in business. Follow-up assistance must be conducted on a regular basis and be responsive to the immediate needs of the entrepreneur.
For more information, contact VEI at (804) 371-7030 or find a VEI program site in your area.
Related Links
Forms
N/A
|
