Department of Business Assistance (325)

Authority: Title 2.2, Chapter 9; Chapter 22, Article 7; and Chapter 24, Article 7, Code of Virginia.

A. 1. The appropriation for this item includes $11,461,287 the first year and $7,961,287 the second year from the general fund for the Virginia Jobs Investment Program at the Department of Business Assistance.  Of this amount, $1,584,870 in the first year and $1,584,870 in the second year may be used for operating expenses.  The remaining $9,876,417 in the first year and $6,376,417 in the second year shall be available for eligible businesses.  It is the intent of the General Assembly that a minimum of 10 percent of the amounts provided for the Virginia Jobs Investment Program each year shall be transferred to the Small Business Jobs Grant Fund established pursuant to § 2.2-904.2, Code of Virginia, and shall only be used for the purposes of that section.

2. Periodically, the agency shall report to the Governor and the Secretary of Commerce and Trade the expenditure of the Small Business Jobs Grant Fund and anticipated needs for small business development in order to monitor the effective use of funds and provide additional funding as needed for small businesses.

3. Any monies remaining in the Virginia Jobs Investment Program at the end of fiscal years 2011 and 2012 shall not revert to the general fund of the state treasury but shall be deposited to the Workforce Retraining Fund and be available for allocation in the ensuing fiscal years.

B.1. The appropriation for this item includes $1,000,000 the first year from the general fund for the Virginia Small Business Financing Authority's Loan Guarantee Program.

2. The appropriation for this item includes $5,000,000 the second year from the general fund for the Virginia Small Business Financing Authority's Loan Guarantee Program, the Virginia Capital Access Program, and the State Loan Participation Program.  The Virginia Small Business Financing Authority is authorized to distribute this amount among these programs to best meet market needs for the respective programs.

3. The Virginia Small Business Financing Authority is authorized to withdraw revenues of up to $50,000 the first year and $50,000 the second year from the accrued interest balances of the Virginia Small Business Growth Fund in order to cover the costs of administering the Virginia Capital Access Program.

4. Also included in this appropriation is $154,196 the first year and $154,196 the second year from the general fund to support the operating expenses of the Virginia Small Business Financing Authority.

5. To meet changing financing needs of small businesses, the Executive Director of the Virginia Small Business Financing Authority, with the approval of the Director of the Department of Business Assistance, may transfer moneys between funds managed by the Authority. These include the Virginia Small Business Growth Fund (§ 2.2-2310, Code of Virginia); the Virginia Export Fund (§ 2.2-2309, Code of Virginia); and the Insurance or Guarantee Fund (§ 2.2-2290, Code of Virginia). The Executive Director of the Virginia Small Business Financing Authority shall report, by fund, the transfers made by January 1 of each year to the Chairmen of the Senate Finance and House Appropriations Committees.

6. The Virginia Small Business Finance Authority is authorized to insure additional loans for eligible small businesses, pursuant to § 2.2-2290, Code of Virginia, up to an aggregate amount not to exceed four times the principal amount in the Insurance or Guarantee Fund, or up to an aggregate amount of $10,000,000, whichever is less.  In the event that the Authority is called upon to pay on guaranties of loans of more than 10 percent of the aggregate amount of all outstanding insured loans, the Authority shall not insure any further loans and shall immediately notify the Governor and the Chairmen of the House Appropriations and Senate Finance Committees.  Pursuant to § 4-1.03.5 of this Act, the Director of the Department of Planning and Budget is authorized to transfer a sum sufficient to the Insurance or Guarantee Fund in the event the amount in the fund falls below the amount needed to honor any guarantee.

7. For the I-95 HOV/HOT Lanes project as evidenced by the Comprehensive Agreement approved pursuant to the Public-Private Transportation Act of 1995, the maximum fee and/or premium charged by the Virginia Small Business Financing Authority pursuant to §§ 2.2-2291 and 2.2-2285, Code of Virginia, for acting as the conduit issuer for any bond financing is not to exceed $25,000 per annum.

C. The appropriation for this item includes $500,000 the first year and $500,000 the second year from the general fund to support the Business One-Stop Program at the Department of Business Assistance.

D. The appropriation for this item includes $875,464 the first year and $945,299 the second year from the general fund for the business information services operating expenses.

E. The appropriation for this item includes $682,487 the first year and $682,652 the second year from the general fund for agency administration.

F.1. Out of the amounts for Economic Development Services shall be provided $127,465 the first year and $127,465 the second year from the general fund to the Virginia-Israel Advisory Board.

2. The Virginia-Israel Advisory Board shall report by January 15 of each year to the Chairmen of the Senate Finance and House Appropriations Committees on the Board's activities and expenditure of state funds.