Urban Development Action Grant Loan Program (NNUDAG)
The Newport News Urban Development Action Grant Loan Program.
The Newport News Urban Development Action Grant Loan Program will lend up to $250,000 to finance new fixed asset investment located in Newport News. Loans are made to businesses that create a significant number of jobs available to low and moderate income persons or that otherwise benefit the City's low and moderate income population. The actual loan amount is determined (subject to the availability of funds and the approval of the Board of the Newport News Redevelopment and Housing Authority), through job creation and the amount of private sector match. Up to $30,000 of the loan amount is available for each new job created ($35,000 per job in Newport News' Enterprise Zone). The loan amount must be matched by at least $2 of private sector funding for every $1 of the loan amount. Private funding sources may be from equity and/or traditional lending institutions.
While real estate costs are eligible, the City prefers to fund machinery or equipment, since Federal Davis-Bacon requirements apply to any construction activity. Up to 20% of the loan proceeds can be used for working capital.
The Fund makes fixed interest loans at an interest rate of 4% to 7%, depending upon ability to pay. The typical term for equipment loans is five years, with a maximum of seven years. The typical term for real estate loans is ten years, with a maximum of fifteen years.
The Guidelines and Application listed above are available for download in PDF format. If you do not have a PDF viewer (such as Adobe Acrabat Reader) installed on your computer, you may download it here.
Contact: Tricia Wilson
Business Development Specialist (757-926-3793)
For more information about any of our low-interest loan programs, please use this form.