The Norfolk Revolving Loan Fund (RLF) program is designed to assist small start-up and early-stage businesses with fewer than 25 employees in the City of Norfolk by providing below market rate loans for the acquisition of fixed assets and equipment/machinery, for use in providing working capital and, in certain limited circumstances, refinancing existing debt to expand employment for Norfolk residents.

The Norfolk RLF program is administered by the Economic Development Authority (EDA) of the City of Norfolk with administrative and oversight assistance from the City of Norfolk’s Department of Economic Development. Loan underwriting and administration is performed by selected contractor, Bridging Virginia. The Norfolk EDA Board of Directors considers and provides a determination for each completed RLF application.

RLF loans can be used for three categories:

1. Fixed Asset Financing
2. Working Capital
3. Debt Refinancing

Fixed asset financing will be available for the purchase of real estate, machinery and equipment. Working capital financing will be available for those entrepreneurs who are in the early stages of their business life cycle. Refinancing of existing debt is only available in combination with the financing of real estate, machinery/equipment and/or working capital when the RLF recipient demonstrates a “sound economic justification” for the refinancing (e.g., the refinancing will support additional capital investment intended to increase business activity).

Consistent with Federal EDA regulations (13 CFR § 307.17) RLF capital may not be used for the following:

1. to acquire an equity position in a private business;
2. to subsidize interest payments on an existing RLF loan;
3. to provide for borrowers’ required equity contributions under other Federal Agencies’ loan programs;
4. to enable borrowers to acquire an interest in a business either through the purchase of stock or through the acquisition of assets, unless sufficient justification is provided in the loan documentation. Sufficient justification may include acquiring a business to save it from imminent closure or to acquire a business to facilitate a significant expansion or increase in investment with a significant increase in jobs. The potential economic benefits must be clearly consistent with the strategic objectives of the RLF;
5. to provide RLF loans to a borrower for the purpose of investing in interest-bearing accounts, certificates of deposit or any investment unrelated to the RLF; or
6. to refinance existing debt, unless the RLF recipient sufficiently demonstrates in the loan documentation a “sound economic justification” for the refinancing (e.g., the refinancing will support additional capital investment intended to increase business activities.)

*** At this time, the Norfolk EDA is only offering loans for fixed asset financing and working capital purposes.***

RLF has a minimum loan size of $5,000 and a maximum loan size of $50,000. Under exceptional circumstances the EDA Board may approve a loan up to $100,000, where a larger loan is necessary to assist in the expansion or attraction of business in a targeted industry cluster, with significant job creation.

The terms of the loan will be:

1. No more than 5 years for working capital loans
2. No more than 10 years for machinery and equipment loans
3. No more than 20 years for real estate loans, with a fixed interest rate

All terms will be based on the useful life of the assets being financed. A longer-term amortization schedule may be approved based on the credit analysis. For start-up companies the term of the loan will be 3 years, but the amortization schedule of the loan may be for a longer period.

The minimum interest rate that may be charged is 4 percentage points below the lesser of the current money center prime interest rate quoted in the Wall Street Journal, or the maximum interest rate allowed under State law. In no event shall the interest rate be less than the lower of 4 percent or 75 percent of the prime interest rate listed in the Wall Street Journal. In no event will the maximum interest rate charged be more than 10%. The determined rate will be a fixed rate for the term of the loan.

The financing structure for each loan will require a minimum of 5% cash injection from the borrower. The goal of the RLF is to create one (1) new, full-time permanent job for every $20,000 loaned from the RLF. The overall objective is to create as many jobs as is feasible. For start-up businesses the owner who devotes full-time to the business shall be counted as a new, full-time permanent job.

Economic impact criteria used to evaluate proposed loans will include the borrower’s repayment ability and the extent and amount of job creation the business will provide. In addition, the RLF will make loans to businesses that cannot otherwise be funded through commercial loans at favorable terms and/or rates.

RLF application review and loan underwriting will be conducted by Bridging Virginia. A review committee will review each application and underwriting package to provide a recommendation to the Norfolk EDA Board. The Norfolk EDA Board will make a final determination for each completed application. Applicants will be notified of their decision.

Spring 2026 Application Timeline:

• February 24^th at 6 p.m.– Virtual interest and info session
• March 2^nd – 20^th – Applications open
• March 23^rd – April 10^th – Application review & underwriting
• April 13^th – 29^th – Review Committee review of applications and underwriting recommendations
• April 29^th – May 5^th – Economic Development staff processing
• May 6^th – Norfolk EDA Board consideration and determination (tentative)