Virginia Small Business Financing Authority Direct Lending Programs Open

In addition to its credit enhancement program, the Virginia Small Business Financing Authority (VSBFA) now offers two direct lending programs: SWAM Microloans and Child Care Financing, with options for both commercial child care centers and at-home child care providers. The SWAM Microloan and Child Care Financing program for commercial child care centers both offer opportunities for Virginia Main Street (VMS) districts.

SWAM Microloans range from $10,000 to $50,000 for the purchase of fixed assets and/or operating capital by certified SWAM businesses that have been operating for 2 or more years. Applicants with a personal credit score of 650 or more are eligible for up to $25,000. Applicants with a personal credit score of 700 or more are eligible for up to $50,000. Loans must be paid back in five years or less at a fixed rate of prime plus 2%. All applicants receive counseling by a Virginia SBDC as part of their ongoing lender support system.

Child care is an emerging business opportunity for Main Street districts as parents staying home during the pandemic try to get back to work. Through VSBFA’s Child Care Financing program, a child care center may borrow up to $150,000 at 0% over seven years for health and safety-related improvements, overall learning programs, and key fixtures such as playground equipment, resilient playground surfacing, bedding, cubbies, books, etc. Funds may not be used for real estate purchases or development, permanent mortgages, working capital, or refinancing debt. Eligible applicants must be licensed by the Virginia Department of Education (VDOE). Preschools must also be certified by VDOE. Religious exemptions to licensing/certification may be available.

Interested SWAM businesses and commercial child care providers may contact Karen White at VSBFA for additional information at

Gloucester’s Bangkok Noi team | Photo Credit: Sara Harris Photography