{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-1616.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-1616.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-1616.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-1616.html"}],"law_id":61784,"edition_id":1,"section_id":61784,"structure_id":15064,"section_number":"2.2-1616","catch_line":"Creation, administration, and management of the Small Business Investment Grant Fund","history":"2013, c. 482; 2016, c. 520; 2017, c. 383; 2019, c. 35; 2020, c. 1234.","full_text":"A\n\nAs used in this section:\n\t\t\t“Authority” means the Virginia Small Business Financing Authority.\n\t\t\t“Eligible investor” means an individual subject to the tax imposed by § 58.1-320 or a special purpose entity established for the purpose of making investments for an individual. “Eligible investor” does not include an individual who engages in the business of making debt or equity investments in private businesses, or any person that would be allocated a portion of the grant under this section as a partner, shareholder, member, or owner of an entity that engages in such business.\n\t\t\t“Fund” means the Small Business Investment Grant Fund.\n\t\t\t“Pass-through entity” means the same as that term is defined in § 58.1-390.1.\n\t\t\t“Qualified investment” means a cash investment in a qualified business in the form of equity or subordinated debt.\n\t\t\t“Small business” means a corporation, pass-through entity, or other entity that (i) has annual gross revenues of no more than $5 million in its most recent fiscal year; (ii) has its principal office or facility in the Commonwealth; (iii) is engaged in business primarily in or does substantially all of its production in the Commonwealth; (iv) has not obtained during its existence more than $5 million in aggregate gross cash proceeds from the issuance of its equity or debt investments, not including commercial loans from national or state-chartered banking or savings and loan institutions; (v) has no more than 50 employees who are employed within the Commonwealth; and (vi) has been designated as such by the Authority pursuant to the provisions of this section.\n\t\t\t“Subordinated debt” means indebtedness of a corporation, general or limited partnership, or limited liability company that (i) by its terms required no repayment of principal for the first three years after issuance, (ii) is not guaranteed by any other person or secured by any assets of the issuer or any other person, and (iii) is subordinated to all indebtedness and obligations of the issuer to national or state-chartered banking or savings and loan institutions.B\n\nFrom such funds as may be appropriated by the General Assembly and any gifts, grants, or donations from public or private sources, there is hereby created in the state treasury a special nonreverting, permanent fund to be known as the Small Business Investment Grant Fund, to be administered by the Department. The Fund shall be established on the books of the Comptroller. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund at the end of each fiscal year, including interest thereon, shall not revert to the general fund but shall remain in the Fund. Expenditures and disbursements from the Fund, which shall be in the form of grants pursuant to this section, shall be made by the State Treasurer on warrants issued by the Comptroller upon written request bearing the signature of the Director. Grants from the Fund shall only be made to applications pursuant to this section.C\n\nAn eligible investor that makes a qualified investment in a small business on or after July 1, 2019, but prior to January 1, 2022, that has been certified by the Authority pursuant to subsection D shall be eligible for a grant in an amount equal to the lesser of 25 percent of the qualified investment or $50,000. An eligible investor may apply for a grant for each qualified investment that is made to one or more small businesses not to exceed a total grant allocation from the Fund of $250,000 per eligible investor.D\n\nA small business shall apply with the Authority to receive qualified investments eligible for the grant pursuant to this section and shall provide to the Authority such information as the Authority deems necessary to demonstrate that it meets the qualifications set forth in subsection A.E\n\nAny eligible investor applying for a grant pursuant to this section shall submit an application to the Authority. The Authority shall determine the amount of the grant allowable to the eligible investor for the year.F\n\nIf an eligible investor is awarded a grant pursuant to this section and the small business in which the investment was made (i) relocates outside of the Commonwealth within two years of the award of the grant or (ii) closes within two years of the award of the grant as a result of a criminal conviction on the part of any officer, director, manager, or general partner of such business relating to his involvement with the business, such investor shall forfeit the grant and refund such moneys to the Authority.\n\t\t\tAdditionally, unless the eligible investor transfers the equity received in connection with a qualified investment as a result of (a) the liquidation of the small business issuing such equity; (b) the merger, consolidation, or other acquisition of such business with or by a party not affiliated with such business; or (c) the death of the eligible investor, any eligible investor that fails to hold such equity for at least two years shall forfeit the grant and shall pay the Authority interest on the total allowed grant at the rate of one percent per month, compounded monthly, from the date the grant was awarded to the taxpayer.\n\t\t\tThe Authority shall deposit any amounts received under this subsection into the general fund of the Commonwealth.G\n\nGrants shall be issued in the order that each completed eligible application is received by the Authority. In the event that the amount of eligible grants requested in a fiscal year exceeds the funds available in the Fund, such grants shall be paid in the next fiscal year in which funds are available.H\n\nAn eligible investor shall not be awarded a grant pursuant to this section for any investment in a small business for which the eligible investor has been allowed a tax credit pursuant to § 58.1-339.4.I\n\nThe Authority shall establish policies and procedures relating to (i) the certification of small businesses, (ii) the application for grants, and (iii) the recapture of grant awards claimed with interest in the event that the qualified investment is not held for the requisite period set forth in subsection F. Such policies and procedures shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).","order_by":null,"text":{"0":{"id":225603,"text":"As used in this section:\n\t\t\t“Authority” means the Virginia Small Business Financing Authority.\n\t\t\t“Eligible investor” means an individual subject to the tax imposed by § 58.1-320 or a special purpose entity established for the purpose of making investments for an individual. “Eligible investor” does not include an individual who engages in the business of making debt or equity investments in private businesses, or any person that would be allocated a portion of the grant under this section as a partner, shareholder, member, or owner of an entity that engages in such business.\n\t\t\t“Fund” means the Small Business Investment Grant Fund.\n\t\t\t“Pass-through entity” means the same as that term is defined in § 58.1-390.1.\n\t\t\t“Qualified investment” means a cash investment in a qualified business in the form of equity or subordinated debt.\n\t\t\t“Small business” means a corporation, pass-through entity, or other entity that (i) has annual gross revenues of no more than $5 million in its most recent fiscal year; (ii) has its principal office or facility in the Commonwealth; (iii) is engaged in business primarily in or does substantially all of its production in the Commonwealth; (iv) has not obtained during its existence more than $5 million in aggregate gross cash proceeds from the issuance of its equity or debt investments, not including commercial loans from national or state-chartered banking or savings and loan institutions; (v) has no more than 50 employees who are employed within the Commonwealth; and (vi) has been designated as such by the Authority pursuant to the provisions of this section.\n\t\t\t“Subordinated debt” means indebtedness of a corporation, general or limited partnership, or limited liability company that (i) by its terms required no repayment of principal for the first three years after issuance, (ii) is not guaranteed by any other person or secured by any assets of the issuer or any other person, and (iii) is subordinated to all indebtedness and obligations of the issuer to national or state-chartered banking or savings and loan institutions.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":225604,"text":"From such funds as may be appropriated by the General Assembly and any gifts, grants, or donations from public or private sources, there is hereby created in the state treasury a special nonreverting, permanent fund to be known as the Small Business Investment Grant Fund, to be administered by the Department. The Fund shall be established on the books of the Comptroller. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund at the end of each fiscal year, including interest thereon, shall not revert to the general fund but shall remain in the Fund. Expenditures and disbursements from the Fund, which shall be in the form of grants pursuant to this section, shall be made by the State Treasurer on warrants issued by the Comptroller upon written request bearing the signature of the Director. Grants from the Fund shall only be made to applications pursuant to this section.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":225605,"text":"An eligible investor that makes a qualified investment in a small business on or after July 1, 2019, but prior to January 1, 2022, that has been certified by the Authority pursuant to subsection D shall be eligible for a grant in an amount equal to the lesser of 25 percent of the qualified investment or $50,000. An eligible investor may apply for a grant for each qualified investment that is made to one or more small businesses not to exceed a total grant allocation from the Fund of $250,000 per eligible investor.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":225606,"text":"A small business shall apply with the Authority to receive qualified investments eligible for the grant pursuant to this section and shall provide to the Authority such information as the Authority deems necessary to demonstrate that it meets the qualifications set forth in subsection A.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":225607,"text":"Any eligible investor applying for a grant pursuant to this section shall submit an application to the Authority. The Authority shall determine the amount of the grant allowable to the eligible investor for the year.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":225608,"text":"If an eligible investor is awarded a grant pursuant to this section and the small business in which the investment was made (i) relocates outside of the Commonwealth within two years of the award of the grant or (ii) closes within two years of the award of the grant as a result of a criminal conviction on the part of any officer, director, manager, or general partner of such business relating to his involvement with the business, such investor shall forfeit the grant and refund such moneys to the Authority.\n\t\t\tAdditionally, unless the eligible investor transfers the equity received in connection with a qualified investment as a result of (a) the liquidation of the small business issuing such equity; (b) the merger, consolidation, or other acquisition of such business with or by a party not affiliated with such business; or (c) the death of the eligible investor, any eligible investor that fails to hold such equity for at least two years shall forfeit the grant and shall pay the Authority interest on the total allowed grant at the rate of one percent per month, compounded monthly, from the date the grant was awarded to the taxpayer.\n\t\t\tThe Authority shall deposit any amounts received under this subsection into the general fund of the Commonwealth.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":225609,"text":"Grants shall be issued in the order that each completed eligible application is received by the Authority. In the event that the amount of eligible grants requested in a fiscal year exceeds the funds available in the Fund, such grants shall be paid in the next fiscal year in which funds are available.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":225610,"text":"An eligible investor shall not be awarded a grant pursuant to this section for any investment in a small business for which the eligible investor has been allowed a tax credit pursuant to § 58.1-339.4.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"8":{"id":225611,"text":"The Authority shall establish policies and procedures relating to (i) the certification of small businesses, (ii) the application for grants, and (iii) the recapture of grant awards claimed with interest in the event that the qualified investment is not held for the requisite period set forth in subsection F. Such policies and procedures shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H"}},"ancestry":[{"id":15064,"edition_id":1,"name":"Small Business Investment Grant Fund","identifier":"2","label":"article","depth":5,"order_by":1,"parent_id":14696,"metadata":{},"date_created":"2026-06-26 03:51:54","date_modified":"2026-06-26 03:51:54","permalink":{"id":173111,"object_type":"structure","relational_id":15064,"identifier":"2","token":"2.2\/I\/C\/16.1\/2","url":"\/2.2\/I\/C\/16.1\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14696,"edition_id":1,"name":"Department of Small Business and Supplier Diversity","identifier":"16.1","label":"chapter","depth":4,"order_by":1,"parent_id":13092,"metadata":{},"date_created":"2026-06-26 03:49:23","date_modified":"2026-06-26 03:49:23","permalink":{"id":173071,"object_type":"structure","relational_id":14696,"identifier":"16.1","token":"2.2\/I\/C\/16.1","url":"\/2.2\/I\/C\/16.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13092,"edition_id":1,"name":"State Agencies Related to the General Operation of Government","identifier":"C","label":"part","depth":3,"order_by":1,"parent_id":12784,"metadata":{},"date_created":"2026-06-26 03:44:16","date_modified":"2026-06-26 03:44:16","permalink":{"id":172453,"object_type":"structure","relational_id":13092,"identifier":"C","token":"2.2\/I\/C","url":"\/2.2\/I\/C\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12784,"edition_id":1,"name":"Organization of State Government","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:53","date_modified":"2026-06-26 03:43:53","permalink":{"id":171455,"object_type":"structure","relational_id":12784,"identifier":"I","token":"2.2\/I","url":"\/2.2\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":57438,"structure_id":15064,"section_number":"2.2-1611","catch_line":"Repealed","url":"\/2.2-1611\/","token":"2.2\/I\/C\/16.1\/2\/2.2-1611","metadata":false},{"id":75521,"structure_id":15064,"section_number":"2.2-1612","catch_line":"Repealed","url":"\/2.2-1612\/","token":"2.2\/I\/C\/16.1\/2\/2.2-1612","metadata":false},{"id":65759,"structure_id":15064,"section_number":"2.2-1615","catch_line":"Repealed","url":"\/2.2-1615\/","token":"2.2\/I\/C\/16.1\/2\/2.2-1615","metadata":false},{"id":61784,"structure_id":15064,"section_number":"2.2-1616","catch_line":"Creation, administration, and management of the Small Business Investment Grant Fund","url":"\/2.2-1616\/","token":"2.2\/I\/C\/16.1\/2\/2.2-1616","metadata":false}],"previous_section":{"id":65759,"structure_id":15064,"section_number":"2.2-1615","catch_line":"Repealed","url":"\/2.2-1615\/","token":"2.2\/I\/C\/16.1\/2\/2.2-1615","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-1616\/","history_text":"

This law was first created in 2013. The record of its establishment is cataloged in chapter 482<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2016, chapter 520<\/a>; in 2017, chapter 383<\/a>; in 2019, chapter 35<\/a>; in 2020, chapter 1234<\/a>.<\/p>","references":false,"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":59823,"section_number":"58.1-390.1","catch_line":"Definitions","order_by":null,"url":"\/58.1-390.1\/"}],"permalink":{"id":173125,"object_type":"law","relational_id":61784,"identifier":"2.2-1616","token":"2.2\/I\/C\/16.1\/2\/2.2-1616","url":"\/2.2-1616\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-1616\/","token":"2.2\/I\/C\/16.1\/2\/2.2-1616","dublin_core":{"Title":"Creation, administration, and management of the Small Business Investment Grant Fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-1616","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Authority<\/span>” means the Virginia Small Business<\/span> Financing Authority<\/span>.\n\t\t\t“Eligible investor<\/span>” means an individual subject to the tax imposed by § 58.1-320<\/a> or a special purpose entity established for the purpose of making investments for an individual. “Eligible investor<\/span>” does not include an individual who engages in the business of making debt or equity<\/span> investments in private businesses, or any person that would be allocated a portion of the grant under this section as a partner, shareholder, member, or owner of an entity that engages in such business.\n\t\t\t“Fund<\/span>” means the Small Business<\/span> Investment Grant Fund<\/span>.\n\t\t\t“Pass-through entity<\/span>” means the same as that term is defined in § 58.1-390.1<\/a>.\n\t\t\t“Qualified investment<\/span>” means a cash investment in a qualified business in the form of equity<\/span> or subordinated debt<\/span>.\n\t\t\t“Small business<\/span>” means a corporation, pass-through entity<\/span>, or other entity that (i) has annual gross revenues of no more than $5 million in its most recent fiscal year; (ii) has its principal office or facility in the Commonwealth; (iii) is engaged in business primarily in or does substantially all of its production in the Commonwealth; (iv) has not obtained during its existence more than $5 million in aggregate gross cash proceeds from the issuance of its equity<\/span> or debt investments, not including commercial loans from national or state-chartered banking or savings and loan institutions; (v) has no more than 50 employees who are employed within the Commonwealth; and (vi) has been designated as such by the Authority<\/span> pursuant to the provisions of this section.\n\t\t\t“Subordinated debt<\/span>” means indebtedness of a corporation, general or limited partnership, or limited liability company that (i) by its terms required no repayment of principal for the first three years after issuance, (ii) is not guaranteed by any other person or secured by any assets<\/span> of the issuer or any other person, and (iii) is subordinated to all indebtedness and obligations of the issuer to national or state-chartered banking or savings and loan institutions. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> From such funds<\/span> as may be appropriated by the General Assembly and any gifts, grants, or donations from public or private sources, there is hereby created in the state treasury a special nonreverting, permanent fund<\/span> to be known as the Small Business<\/span> Investment Grant Fund<\/span>, to be administered by the Department<\/span>. The Fund<\/span> shall be established on the books of the Comptroller. Interest earned on moneys in the Fund<\/span> shall remain in the Fund<\/span> and be credited to it. Any moneys remaining in the Fund<\/span> at the end of each fiscal year, including interest thereon, shall not revert to the general fund<\/span> but shall remain in the Fund<\/span>. Expenditures and disbursements from the Fund<\/span>, which shall be in the form of grants pursuant to this section, shall be made by the State Treasurer on warrants issued by the Comptroller upon written request bearing the signature of the Director. Grants from the Fund<\/span> shall only be made to applications pursuant to this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> An eligible investor<\/span> that makes a qualified investment<\/span> in a small business<\/span> on or after July 1, 2019, but prior to January 1, 2022, that has been certified by the Authority<\/span> pursuant to subsection D shall be eligible for a grant in an amount equal to the lesser of 25 percent of the qualified investment<\/span> or $50,000. An eligible investor<\/span> may apply for a grant for each qualified investment<\/span> that is made to one or more small businesses not to exceed a total grant allocation from the Fund<\/span> of $250,000 per eligible investor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A small business<\/span> shall apply with the Authority<\/span> to receive qualified investments<\/span> eligible for the grant pursuant to this section and shall provide to the Authority<\/span> such information as the Authority<\/span> deems necessary to demonstrate that it meets the qualifications set forth in subsection A. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any eligible investor<\/span> applying for a grant pursuant to this section shall submit an application to the Authority<\/span>. The Authority<\/span> shall determine the amount of the grant allowable to the eligible investor<\/span> for the year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> If an eligible investor<\/span> is awarded a grant pursuant to this section and the small business<\/span> in which the investment was made (i) relocates outside of the Commonwealth within two years of the award of the grant or (ii) closes within two years of the award of the grant as a result of a criminal conviction<\/span> on the part of any officer, director, manager, or general partner of such business relating to his involvement with the business, such investor shall forfeit the grant and refund such moneys to the Authority<\/span>.\n\t\t\tAdditionally, unless the eligible investor<\/span> transfers the equity<\/span> received in connection with a qualified investment<\/span> as a result of (a) the liquidation<\/span> of the small business<\/span> issuing such equity<\/span>; (b) the merger, consolidation<\/span>, or other acquisition of such business with or by a party<\/span> not affiliated with such business; or (c) the death of the eligible investor<\/span>, any eligible investor<\/span> that fails to hold such equity<\/span> for at least two years shall forfeit the grant and shall pay the Authority<\/span> interest on the total allowed grant at the rate of one percent per month, compounded monthly, from the date the grant was awarded to the taxpayer.\n\t\t\tThe Authority<\/span> shall deposit any amounts received under this subsection into the general fund<\/span> of the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Grants shall be issued in the order<\/span> that each completed eligible application is received by the Authority<\/span>. In the event that the amount of eligible grants requested in a fiscal year exceeds the funds<\/span> available in the Fund<\/span>, such grants shall be paid in the next fiscal year in which funds<\/span> are available. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> An eligible investor<\/span> shall not be awarded a grant pursuant to this section for any investment in a small business<\/span> for which the eligible investor<\/span> has been allowed a tax credit pursuant to § 58.1-339.4<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> The Authority<\/span> shall establish policies and procedures relating to (i) the certification<\/span> of small businesses, (ii) the application for grants, and (iii) the recapture of grant awards claimed with interest in the event that the qualified investment<\/span> is not held for the requisite period set forth in subsection F. Such policies and procedures shall be exempt from the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCREATION, ADMINISTRATION, AND MANAGEMENT OF THE SMALL BUSINESS INVESTMENT GRANT\nFUND (\u00a7 2.2-1616)\n\nA. As used in this section:\n\t\t\t“Authority” means the Virginia Small Business Financing\nAuthority.\n\t\t\t“Eligible investor” means an individual subject to the tax\nimposed by § 58.1-320 or a special purpose entity established for the\npurpose of making investments for an individual. “Eligible investor”\ndoes not include an individual who engages in the business of making debt or\nequity investments in private businesses, or any person that would be allocated\na portion of the grant under this section as a partner, shareholder, member, or\nowner of an entity that engages in such business.\n\t\t\t“Fund” means the Small Business Investment Grant Fund.\n\t\t\t“Pass-through entity” means the same as that term is defined in\n§ 58.1-390.1.\n\t\t\t“Qualified investment” means a cash investment in a qualified\nbusiness in the form of equity or subordinated debt.\n\t\t\t“Small business” means a corporation, pass-through entity, or\nother entity that (i) has annual gross revenues of no more than $5 million in\nits most recent fiscal year; (ii) has its principal office or facility in the\nCommonwealth; (iii) is engaged in business primarily in or does substantially\nall of its production in the Commonwealth; (iv) has not obtained during its\nexistence more than $5 million in aggregate gross cash proceeds from the\nissuance of its equity or debt investments, not including commercial loans from\nnational or state-chartered banking or savings and loan institutions; (v) has no\nmore than 50 employees who are employed within the Commonwealth; and (vi) has\nbeen designated as such by the Authority pursuant to the provisions of this\nsection.\n\t\t\t“Subordinated debt” means indebtedness of a corporation, general\nor limited partnership, or limited liability company that (i) by its terms\nrequired no repayment of principal for the first three years after issuance,\n(ii) is not guaranteed by any other person or secured by any assets of the\nissuer or any other person, and (iii) is subordinated to all indebtedness and\nobligations of the issuer to national or state-chartered banking or savings and\nloan institutions.\n\nB. From such funds as may be appropriated by the General Assembly and any gifts,\ngrants, or donations from public or private sources, there is hereby created in\nthe state treasury a special nonreverting, permanent fund to be known as the\nSmall Business Investment Grant Fund, to be administered by the Department. The\nFund shall be established on the books of the Comptroller. Interest earned on\nmoneys in the Fund shall remain in the Fund and be credited to it. Any moneys\nremaining in the Fund at the end of each fiscal year, including interest\nthereon, shall not revert to the general fund but shall remain in the Fund.\nExpenditures and disbursements from the Fund, which shall be in the form of\ngrants pursuant to this section, shall be made by the State Treasurer on\nwarrants issued by the Comptroller upon written request bearing the signature of\nthe Director. Grants from the Fund shall only be made to applications pursuant\nto this section.\n\nC. An eligible investor that makes a qualified investment in a small business on\nor after July 1, 2019, but prior to January 1, 2022, that has been certified by\nthe Authority pursuant to subsection D shall be eligible for a grant in an\namount equal to the lesser of 25 percent of the qualified investment or $50,000.\nAn eligible investor may apply for a grant for each qualified investment that is\nmade to one or more small businesses not to exceed a total grant allocation from\nthe Fund of $250,000 per eligible investor.\n\nD. A small business shall apply with the Authority to receive qualified\ninvestments eligible for the grant pursuant to this section and shall provide to\nthe Authority such information as the Authority deems necessary to demonstrate\nthat it meets the qualifications set forth in subsection A.\n\nE. Any eligible investor applying for a grant pursuant to this section shall\nsubmit an application to the Authority. The Authority shall determine the amount\nof the grant allowable to the eligible investor for the year.\n\nF. If an eligible investor is awarded a grant pursuant to this section and the\nsmall business in which the investment was made (i) relocates outside of the\nCommonwealth within two years of the award of the grant or (ii) closes within\ntwo years of the award of the grant as a result of a criminal conviction on the\npart of any officer, director, manager, or general partner of such business\nrelating to his involvement with the business, such investor shall forfeit the\ngrant and refund such moneys to the Authority.\n\t\t\tAdditionally, unless the eligible investor transfers the equity received in\nconnection with a qualified investment as a result of (a) the liquidation of the\nsmall business issuing such equity; (b) the merger, consolidation, or other\nacquisition of such business with or by a party not affiliated with such\nbusiness; or (c) the death of the eligible investor, any eligible investor that\nfails to hold such equity for at least two years shall forfeit the grant and\nshall pay the Authority interest on the total allowed grant at the rate of one\npercent per month, compounded monthly, from the date the grant was awarded to\nthe taxpayer.\n\t\t\tThe Authority shall deposit any amounts received under this subsection into\nthe general fund of the Commonwealth.\n\nG. Grants shall be issued in the order that each completed eligible application\nis received by the Authority. In the event that the amount of eligible grants\nrequested in a fiscal year exceeds the funds available in the Fund, such grants\nshall be paid in the next fiscal year in which funds are available.\n\nH. An eligible investor shall not be awarded a grant pursuant to this section\nfor any investment in a small business for which the eligible investor has been\nallowed a tax credit pursuant to § 58.1-339.4.\n\nI. The Authority shall establish policies and procedures relating to (i) the\ncertification of small businesses, (ii) the application for grants, and (iii)\nthe recapture of grant awards claimed with interest in the event that the\nqualified investment is not held for the requisite period set forth in\nsubsection F. Such policies and procedures shall be exempt from the\nAdministrative Process Act (§ 2.2-4000 et seq.).\n\nHISTORY: 2013, c. 482; 2016, c. 520; 2017, c. 383; 2019, c. 35; 2020, c. 1234.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}