Newport News Urban Development Action Grant Loan Program
The Newport News Urban Development Action Grant Loan Program will lend up to $250,000 to finance new fixed asset investment located in Newport News. Loans are made to businesses that create a significant number of jobs available to low and moderate income persons or that otherwise benefit the city's low and moderate income population.
The actual loan amount is determined (subject to the availability of funds and the approval of the Board of the Newport News Redevelopment and Housing Authority), through job creation and the amount of private sector match. Up to $30,000 of the loan amount is available for each new job created ($35,000 per job in Newport News' Enterprise Zone). The loan amount must be matched by at least $2 of private sector funding for every $1 of the loan amount. Private funding sources may be from equity and/or traditional lending institutions.
Loan Funding & Rate
While real estate costs are eligible, the city prefers to fund machinery or equipment, since Federal Davis-Bacon requirements apply to any construction activity. Up to 20% of the loan proceeds can be used for working capital. The fund makes fixed interest loans at an interest rate of 4% to 7%, depending upon ability to pay. The typical term for equipment loans is 5 years, with a maximum of 7 years. The typical term for real estate loans is 10 years, with a maximum of 15 years.
Additional Loan Information
The program guidelines (PDF) and application (PDF) can be read online. If you have any questions, please contact Tricia Wilson via email or by phone at 757-926-3793.