Investors who put their money into starting or expanding small businesses can get a 10 percent grant from the state of Virginia under legislation signed by Gov. Bob McDonnell Wednesday.
The law, which goes into effect July 1, creates the $1.5 million Small Business Grant Fund.
"Small businesses create most of the new jobs in the commonwealth," McDonnell said. "The legislation signed today will encourage private capital to invest in these job-creating entrepreneurs. The Small Business Investment Grant Fund will make it easier for those eligible to invest in Virginia's small businesses."
The Senate sponsor of the bill, Sen. Ryan McDougle, R-Hanover, said the fund will make it easier for entrepreneurs with strong business ideas to find the capital to get their idea off the ground.
"The real issue that I see out there in the community is that there are people with a tremendous number of great ideas; they have the desire to work hard; they can put the structure in place, but they don't have the capital to be able to make sure the business runs," McDougle said. "Most people will tell you need to make sure you have capital that goes between one and two years for business to establish some roots, earn some repeat customers and get going. This will help."
Freshman Del. Mike Watson, R-Williamsburg, who was a founder of the General Assembly's bipartisan Business Development Caucus during the 2012 session and attended the signing ceremony, said the fund will help the Peninsula get out of the economic crisis by encouraging people to take the risk and start new businesses.
"In the best-case scenario then they start creating jobs and that will get us out of this (recession)," Watson said. "You see again and again after these recessions that's how we get kick started to get out of them."
Most Popular Stories
- SEO Traffic Lab Celebrate Wins at Digital Marketing Event 'Internet World 2013' in London
- Social Media Initiatives Should Follow Customers' Lead
- Apple CEO: Offshore Units Not a 'Tax Gimmick'
- U.S. Senate Accuses Apple of Large-scale Tax Avoidance
- UTEP Water Recycling Project Wins Venture Titles
- Marketo Makes a Mint in IPO: Stock Shoots Up More than 50 Percent
- Bieber Booed at Billboard Awards
- Crude Oil Up, Gasoline Down
- Austin Startup Compare Metrics Raises $3.5 Million for Expansion
- Why So Many Top 'Car Guys' Are Actually Women