EDA Relaunches Small Business Loan Program to Help Warren County Entrepreneurs Access Capital

The Front Royal–Warren County Economic Development Authority is relaunching a small-business loan program to help local entrepreneurs access capital when traditional bank financing isn’t available.

EDA Executive Director Rob MacDougall, EDA Board Member James Fox, and Ryan Hall, Executive Director of the Shenandoah Community Capital Fund (SCCF), recently outlined the initiative and explained how it could help local businesses start, expand, and create jobs in Warren County.

MacDougall said the program had been dormant for several years but is now being revived as part of broader efforts to restore economic development tools available to the community.

“We want to get the word out that the Small Business Loan Program is resuming and reactivating,” MacDougall said. “This program helps address financing gaps that small businesses often face.”

Filling the gap when banks say no

Small business owners, especially startups, often find it difficult to obtain loans from traditional lenders due to limited financial history or a lack of collateral.

Hall said programs like the EDA’s Small Business Loan Program help fill that gap.

“Banks are looking at risk and want to know they’ll get their money back,” Hall said. “But that doesn’t always line up with the life cycle of an entrepreneur. Programs like this can help bridge that gap when a bank just can’t get to ‘yes.’”

Hall explained that the Shenandoah Community Capital Fund has spent nearly two decades helping communities administer municipal loan funds and assist entrepreneurs in accessing capital.

The organization will help manage the program’s administrative side, including underwriting and documentation, while the EDA board retains authority over final loan approvals.

“The final decision still stays with the EDA board,” MacDougall said. “We’re leveraging SCCF’s expertise to manage the process professionally, but those decisions remain here in the community.”

Federal funding already available

The loan program is funded through money originally provided by the U.S. Department of Agriculture’s Intermediary Relending Program (IRP), which is designed to stimulate economic growth and job creation in rural communities.

The funds were granted to the EDA more than a decade ago but have largely gone unused in recent years.

Fox said restarting the program became a priority after he joined the board and discovered the available funding.

“The federal government literally gave us this money, and it’s just been sitting there not doing anything,” Fox said. “We want to get it working in the community where it can actually help businesses grow.”

Two loan programs available

The program offers two types of loans to support local businesses.

The Rural Business Development Grant Fund provides smaller loans of up to $25,000 to small businesses with fewer than 50 employees and annual revenue of less than $1 million.

The Intermediary Relending Program (IRP) loan fund offers larger loans of up to $100,000 for qualifying businesses.

In general, loans can cover up to 50 percent of a project’s total cost and typically have repayment terms of up to five years.

Interest rates will be tied to the prime rate, typically around prime plus one percent, and will remain fixed for the duration of the loan.

Borrowers may repay loans early without penalty.

Eligibility requirements

To qualify, businesses must:

• Be an independent or locally controlled business
• Operate from a permanent location in Warren County
• Have 50 or fewer employees
• Generate less than $1 million in annual revenue
• Hold a valid Warren County business license and be registered with the Commonwealth of Virginia
• Applicants must also be current on any federal debt.

Loans may require collateral, such as equipment, real estate, inventory, or accounts receivable, as well as personal guarantees from owners with significant ownership stakes.

What the loans can fund

Loan proceeds may be used for projects that help businesses grow, including:

• Purchasing equipment
• Building renovations or improvements
• Business expansion
• Certain types of debt consolidation are tied to business investment
• Funds cannot be used simply to cover routine operating expenses.

Support beyond financing

In addition to financing, entrepreneurs who apply for loans will be connected with the Small Business Development Center (SBDC), which provides free consulting services to help business owners strengthen their plans.

MacDougall said that the partnership ensures businesses not only receive funding but also the guidance needed to succeed.

“Sometimes businesses need financing, but they also need that consultation,” MacDougall said. “Working with the Small Business Development Center helps ensure the loan is being used effectively and that the business has the best chance to succeed.”

A step toward rebuilding the EDA

The loan program’s relaunch is part of a larger effort to rebuild the EDA’s economic development programs after several challenging years.

By partnering with regional organizations such as SCCF and the Small Business Development Center, the authority hopes to expand the resources available to local entrepreneurs, even while operating with limited staff.

“We’re finding ways to leverage regional partners to deliver these programs,” MacDougall said. “It allows us to bring important tools back online for the community.”

How to apply

Information about the loan program and application details can be found on the Front Royal–Warren County EDA website, which now features a dedicated page for the program.

Local entrepreneurs interested in applying or learning more can also contact Rob MacDougall at 703-517-9171 or rmacdougall@frwceda.com

“This is another tool to help businesses grow here in Warren County,” MacDougall said.

Town Talk, sponsored by National Media Services, Inc., is a Royal Examiner series that introduces you to local entrepreneurs, business owners, nonprofit leaders, and public officials who help shape Warren County. Conversations cover a wide range of topics about our community and the people making a difference.