LOW-INTEREST LOANS FOR SMALL BUSINESSES
WHAT IS THE PACK FUND?
The Pack Fund is a small lending pool of money, intended to help small businesses by providing non-traditional, low-interest financing for start-ups and expansions.
WHO IS PROVIDING THESE FUNDS?
Virginia’s Growth Alliance, your regional economic development organization, in partnership with DHCD, the Longwood SBDC and the Lake Country Development Corporation.
HOW MUCH IS AVAILABLE?
We have 150k to lend. The maximum single loan amount will be 40k.
HOW DO I QUALIFY?
- Have a business or plan to start a business in the VGA Region.*
- Need funding to start or expand your business.
- Demonstrate that, by securing these funds, your business will support one or more full-time jobs.
- Believe in your Vision.
HOW CAN I LEARN MORE?
Loan Terms are included below on this page. If you're ready to begin completing your loan application, submit the form on this page and you'll gain immediate access to the download link. Download the flyer.
Are you an advisor who is interested in the Pack Fund for your clients? If so, visit our Pack Fund for Advisors page.
Loan amounts will not exceed $40,000.
Equity, in the terms of collateral and/or security requirements will be determined on a case-by case basis subject to the recommendation by the Loan Review Officer.
Loan rates and terms are negotiable and are recommended by the Loan Review Officer and approved by the Loan Review Committee. The maturity of each loan is determined by the:
- Customer’s ability to repay
- Proposed use of proceeds
- Timeline of the project
- Useful life of the asset purchased
There is no application fee. An origination fee of one (1) percent is due at loan closing. The borrower is also responsible for project related legal fees and closing costs. Fees and related closing costs may be included in the financing package and collected at loan closing.
Loan payments are due on the first day of the month. A late payment fee will be assessed at five (5) percent of the monthly payment amount or $25 (whichever is greater) after the loan payment becomes 15 days in arrears. Loans may be prepaid without penalty.
Collateral for all loans is preferred. However, each loan request will be evaluated on a case-by-case basis subject to review by the Loan Review Officer who will make recommendations to the Loan Review Committee. Collateral may include real estate, cash or cash equivalents, corporate assets, equipment, inventory, and receivables, personal or institutional guarantees. The amount and type of collateral deemed acceptable as recommended by the Loan Review Officer is at the discretion of the Loan Review Committee.
*Virginia's Growth Alliance is comprised of the counties of Amelia, Brunswick, Buckingham, Charlotte, Cumberland, Greensville, Mecklenburg, Nottoway, Lunenburg, & Prince Edward, and the City of Emporia. Those in Halifax County, while not in VGA, are eligible for a separate loan pool from Lake Country Development Corporation and can download that application through the form on this page as well.