PROGRAMS

Providing Access to Capital for Entrepreneurs (P.A.C.E.)

The P.A.C.E. Program provides access to capital for disadvantaged Virginia businesses by encouraging banks to make loans that they would otherwise not make due to a borrower’s risk profile.  The program is administered by the Virginia Small Business Financing Authority (VSBFA) for the Department of Minority Business Enterprise (DMBE).  The P.A.C.E. program provides two financing mechanisms, the Capital Access Fund for Disadvantaged Businesses and the Loan Guaranty Fund for Disadvantaged Businesses.

·          Eligible Loan Uses:  Funds are available for working capital, expansion, equipment, agri-business and most other business needs.  Loans to refinance a bank’s existing loans to a borrower or loans for non-owner occupied real estate or residential housing are not eligible for enrollment.

·         Eligible Loan Types:  Term loans and lines of credit are eligible.

·         Eligible Borrowers:  Any corporation, partnership, limited liability corporation, limited liability partnership, joint venture, sole proprietorship which is authorized to conduct business in the Commonwealth of Virginia

Applications for the P.A.C.E. Program are made by the bank requesting the VSBFA’s participation. Unlike traditional government guaranty programs, the P.A.C.E. Program requires very limited paperwork and offers the bank great flexibility in loan structuring. For banks wishing to use the program, please call us toll-free at 1-866-248-8814.

To qualify as an applicant under the program, the Virginia business must meet the VSBFA criteria for an eligible business. If a business is interested in accessing financing through the program, the business should first consult with a bank about their financing request. If the bank determines that the Loan Guaranty Fund for Disadvantaged Businesses is needed, the bank and the borrower must complete the P.A.C.E. Loan Guaranty Fund Application and submit it, along with all required attachments, to the VSBFA for consideration.

Click here for a P.A.C.E. Program Fact Sheet in a printer friendly format.

Click here for a link to the Virginia Department of Minority Business Enterprise. 

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