Relocate or Expand

The King Georg County EDA is here to help you expand or relocate your business while getting all the best that King George has to offer.

Industrial Revenue Bonds

King George County EDA has the authority to approve Industrial Revenue Bonds to the guidelines outlined below.

Pursuant to Chapter 33, Title 15.1 of the Code of Virginia, the King George County Economic Development Authority (“KGCEDA”) has the authority to approve conduit tax-exempt revenue bonds (“EDA Revenue Bonds”) for the financing of qualifying capital projects for certain applicant organizations (each, an “Applicant”). Below are some facts to familiarize your organization with an overview on eligibility and the process.

What is an EDA Revenue Bond?

EDA Revenue Bonds are referred to as “industrial development revenue bonds” or “IRBs” due to being primarily used for manufacturing or other industrial projects.

To assist in the growth of industry in King George County KGCEDA has the legal authority to issue tax-exempt revenue bonds to be used in financing the acquisition, construction or equipping of various types of applicant capital projects and facilities.

Benefits:

The interest earned on the EDA Revenue Bonds is exempt from Virginia and Federal income taxation. The is also payable only from revenues of the Applicant and any security the applicant pledges to repay the bond. The tax-exemption on the interest on an EDA Revenue Bond allows a lender or investor to offer debt financing to the Applicant at a significantly lower rate of interest.

The KGCEDA and the Commonwealth of Virginia are ot responsible in any way for the repayment of the bonds.

Eligible organizations:

In order to qualify, an Applicant and it’s capital project must be one of the following: (A) a facility owned and used by a non-profit 501(c)(3) entity; or (B) a small, for-profit “manufacturing facility.”

What is the range of funding that can be borrowed by an EDA Revenue Bond?

There is no limit on the maximum amount of an EDA Revenue Bond financing for a qualified 501(c)(3) applicant’s project; other than any limit imposed by the lender of investor who is providing the tax-exempt financing.

For manufacturing facilities the Federal tax law-imposed limit on the size of EDA Revenue Bonds for qualified applicants is a maximum of $10,000,000.

For your consideration:

EDA Revenue Bond financing are somewhat more complicated than conventional financing-due to the required tax qualifications and KGCEDA and King George County approvals. It is somewhat more expensive to document and close them. It is not cost effective from a transaction costs to pursue EDA Revenue Bond financing for projects less than $5,000,000.

Public Process:

Notice of the Applicant’s request for the EDA Revenue Bond Financing will be published and advertised in the newspaper and considered a public meeting for the KGCEDA’s members. Furthermore, Economic Development staff will contact the King George County Board of Superevisors in whose district the project is located in to notify the Supervisor of the pending revenue bond request. Intent on being to identify any issues or concerns the Supervisor might have with the request prior to the schedule public hearing before the KGCEDA.

Following KGCEDA approval, KGCEDA bond counsel will coordinate with the County Administrators department to place the EDA Revenue Bond matter on the agenda of the Board of Supervisors for consideration at an upcoming meeting.

Fees Associated with an EDA Revenue Bond:

KGCEDA charges an issuance fee for all new money associated with EDA Revenue Bond requests processed through our office.

Why Pursue an EDA Revenue Bond rather than borrow directly?

Borrowing terms can be more favorable than, for example, a direct loan from a bank. Interest on qualified revenue bonds issued by the KGCEDA is exempt from taxation. The availability of this tax benefit generally results in a significantly lower interest rate for the user of the borrowed funds.

For more information contact King George County Economic Development Staff

Please send an e-mail to [email protected] or call
540-775-9181

Grants

For more information contact King George County Economic Development Staff

Please send an e-mail to [email protected] or call
540-775-9181

King George County Economic Development Authority is committed to supporting small business development. Our goal is for any incentives we provide to make logical economic sense for both the citizens of King George County and the businesses located in King George, existing or new. The primary considerations for incentives are the intrinsic value of the project to the industrial and commercial base in King George County, number of employees, average annual wages, total annual payroll, and amount of investment. Other criteria may include:
  •   A comparison of the cost of the incentive against the benefits that the project is expected to produce.
  •  An evaluation of the impact on the tax base and revenue.
  •  Analysis of the impact of a project on existing businesses. Projects that simply shift economic activity from one area of the community to another might not represent good investments of public funds.
  •  A determination of whether the project would proceed if the incentive were not provided. Local economic development incentives exist to induce private economic activity where it would have not otherwise occurred.
  • Initiatives which include matching grants from outside agencies are encouraged.
Qualifying new small business projects approved by the Economic Development Authority (EDA) are eligible to apply for grant assistance to offset business development costs. Qualifying new small business projects will be evaluated and considered using the most recent North American Industry Classification System Table of Size Standards published by the Small Business Administration.
North American Industry Classification System Table of Size Standards

Qualifying Costs

Start-up costs are integral to the development and sustainability of the proposed core business project, including but not limited to County fees and infrastructure development.

Each fiscal year, the EDA will set a target amount of grant funding available for the program. This program is funded by the King George EDA on a case-by-case basis. All application decisions are final.

Funding Source

The EDA will front the cost of the grant to qualifying businesses. Upon establishment of the qualifying business, the EDA will be reimbursed by the Board of Supervisors through tax revenues collected from the qualifying business over a period of five years.

Requirements

  • The Business must be located within the boundaries of King George County.
  • Applicants must prove viable financing and the ability to procure any and all applicable permits to carry the project through to completion, as well as compliance with all applicable laws. 
  • Applicants and the proposed business must be in good standing with regards to County taxes and fees.
  • Grants shall not be awarded retroactively for projects completed prior to application.
  • The request must be made by a registered business, not an individual.
  • A federal tax identification number is required.
  • A project budget with a complete list of expenses and funding must be provided with the application.
  • Grantee must not relocate business outside the boundaries of the County during agreed upon timeframe.
  • The EDA reserves the right to amend the amount requested.
  • If the application is approved, a final binding agreement will be produced reflecting the agreed upon use of funds and requirements.

Exclusions

  • Corporate franchises
  • Labor, social or political groups
  • Specific individuals or families for use other than business purposes
  • Payments for religious purposes
  • Debt retirement

Process

  • All terms of the agreement must be achieved by the grantee or the EDA reserves the right to seek reimbursement of funds.
  • Compliance with all County, State, or Federal ordinances and statutes must be maintained. Violations committed by the recipient may cause the grant to become payable on demand.

Grant Amount Range

Common Grant Amounts: $500-$20,000
The grant amount will be considered up to $20,000 per business applicant.

Grants above $20,000 will be considered on a case-by-case basis.

Each fiscal year, the EDA will set a target amount of grant funding available for the program, with the first year of implementation not to exceed the amount of $20,000.

Application Process

Applicants should be willing to demonstrate the following:

  • A comparison of the cost of the incentive against the benefits that the project is expected to produce in King George County.
  • An evaluation of the impact on the tax base and revenue.
  • Analysis of the impact of a project on existing businesses.
  • A determination of whether the project would proceed if the incentive were not provided. Local economic development incentives exist to induce private economic activity where it would have not otherwise occurred.
  • Be prepared to provide requested documentation for the economic development application and the officials who are a part of the review team.

Requirements when a Grant has Been Allocated

Requirements may include but are not limited to provide the EDA with periodic reports, no less than annually, but for a period of 3 years as follows:

  • Financial reports
  • Business Impact Assessment
  • Updated business plans

Clawback Provision

Each of the periodic reports will be evaluated on a case-by-case basis.

King George County EDA has the right to pursue reimbursement of the monies allocated if the business closes in less than 5 years.

Search Available Properties

With a population of just over 26,000 spread across King George’s 113,3920 acres of land, the County has plenty of prime real estate to offer. Property owners in King George enjoy competitive tax rates and abundant natural beauty. The King George Department of Economic Development can assist businesses with identifying suitable locations from which to operate.

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