Financing Your Business

Free Money Warning

Grants!!!! Everyone wants to know where they can get “free” money to start or expand a business. Despite ads indicating there are “giveaways” from the government, the possibility of getting “free” money to start or expand your business is slim. Beware of offers to the contrary.

Virginia Small Business Financing Authority (VSBFA)

Virginia Small Business Financing Authority (VSBFA) is the Commonwealth of Virginia’s economic development and small business financing arm. It helps Virginia’s existing businesses and those businesses that are seeking to come to Virginia through its extensive portfolio of financing programs. For more information and contact information, visit the Virginia Small Business Financing Authority website.

Regional Lending Manager: Donald Jacubec -

Commercial Loans

Financial Institutions, like local banks and credit unions, can work with you to secure a commercial loan, however, they will want to see evidence of the 7 c’s of credit:

  • Capital
  • Cash Flow
  • Character
  • Collateral
  • Competency
  • Conditions
  • Credit Score

Before approaching the bank, you will want to have a solid business plan. View the financial institutions located in King George County.

Small Business Administration (SBA)

Small Business Administration (SBA) provides loan guarantees to banks to encourage funding of small businesses. The SBA is not a lending institution like a bank or credit union and therefore does not issue loans. Instead, it provides support to your loan request from a bank in the form of loan guarantees. A loan guarantee is a promise by one party (the guarantor or, in this case the SBA) to assume the debt obligation of a borrower (the small business owner) if that borrower defaults on the loan. For more information on SBA-backed loans, please contact your local financial institution.

SBA 504 Loan Program

REDCO is a licensed non-profit, Certified Development Company that offers long-term fixed rate financing for small business in Virginia through the SBA 504 Loan Program.

The SBA 504 Loan Program is a long-term financing tool for economic development within a community. The 504 Loan Program provides growing businesses with a long-term fixed-rate financing for major fixed assets, such as land and buildings to include expansion, renovation, and construction projects. This loan program does not provide working capital for business start assistance. Contact information is:
1125 Jefferson Davis Highway
Suite 420
Fredericksburg, VA 22401
Fax: 540-526-9898


Bootstrapping is a common way to finance a business. Bootstrapping is when a small businessperson finances his business with savings, credit cards, home equity loans, or money borrowed from friends and family