The Economic Development Authority (EDA) of the City of Fredericksburg acts as a catalyst for responsible economic growth that improves Fredericksburg’s quality of life. The EDA primarily receives its funding from annual fees derived from the issuance of bonds for qualified borrowers. The EDA has the statutory authority from the Commonwealth of Virginia to provide loans, financial grants, and incentives to assist for-profit businesses, nonprofit organizations, or governmental entities in the City of Fredericksburg (22401).
The EDA assists for-profit businesses, nonprofit organizations, and governmental entities in the City of Fredericksburg that undertake projects, events, or activities that significantly improve the economic vitality of the City of Fredericksburg.
The EDA will review and make decisions about each application based on these criteria:
- whether the project, event, or activity is consistent with the Economic Development Strategic Plan jointly adopted by the EDA and Fredericksburg City Council;
- whether the project, event, or activity significantly improves the economic vitality of the City of Fredericksburg as broadly as possible;
- whether the applicant has demonstrated a need for the grant;
- whether the applicant has demonstrated that the project, event, or activity is sustainable beyond the use of EDA funds; and
- whether the project, event, or activity is able to be completed within a reasonable timeline as defined by the EDA.
Furthermore, the EDA requires that the applicant must:
- have all necessary permits for the project, event, or activity; or be able to demonstrate that they will have them before funds are disbursed; and
- be current and in good standing with the State of Virginia and the City of Fredericksburg according to their legal category.
The funding for these grants is limited and may vary from year to year. Decisions on whether to grant funds and the amount of each grant is solely at the EDA’s discretion.
Applying for a Grant
The applicant must submit all necessary forms and documentation prior to the EDA considering the grant request. Supporting documents must include:
- a detailed description of how EDA funds are to be used, and how the project will be made visible to the public;
- a statement describing how the project, event, or activity fits to goals of the Economic Development Strategic Plan ;
- an economic impact statement detailing the projected impact of the project, event, or activity on the economic vitality of the City of Fredericksburg. Such a statement might document the impact on specific businesses or categories of business; projections of potential tax revenue for the City, or an estimate of the number of visitors or hotel room nights generated;
- a complete budget for the project, event, or activity, including a breakdown of projected uses for both EDA and non-EDA funds;
- a statement of need for EDA funds, and an overview of other sources of revenue;
- documentation of any permits needed for the project, event, or activity;
- (for nonprofit applicants), proof of Virginia corporation status, proof of registration to request charitable donations in Virginia, and proof of tax exempt status from the IRS or proof of application to the IRS for tax exempt status; and
- (for for-profit applicants) documentation of corporate registration as well as documentation of full compliance with all City licenses, taxes, and fees.
Applicants should meet with designated EDA staff before submitting an application to determine applicant’s eligibility and make sure that the application is complete.
All grant applications must be complete and received by the designated Economic Development and Tourism staff member by the first Monday of each month to be reviewed at the EDA’s next regular meeting. Applications and supporting documentation will be distributed to all EDA members for their review. Final determinations will be made by the members of the EDA.
The EDA may require applicants to come to the EDA meeting when their application is being considered to make an in-person presentation about the grant request.
Distribution of Funds
All applicants must be in good standing with the State of Virginia and the City of Fredericksburg to be considered for an EDA grant, and they must remain in good standing throughout the period of the grant. No grant funds will be paid unless all applicable City permits and approvals have been issued.
The EDA may require the submission of invoices for elements specified in the application, and pay such invoices upon completion of individual elements of the project, event, or activity. If required, invoices must specify the items in the approved grant and include a certification that all subcontractors have been paid. The EDA strives to pay invoices within thirty days. The EDA may choose to pay sub-contractors and vendors directly.
Should the project, event, or activity not occur, Grantee shall return all EDA paid grant funds unless the Grantee can provide sufficient documentation that the funds have been spent and are unable to be refunded, and that the cancellation was beyond the Grantee’s control.
The EDA may require Grantees to notify the EDA after all project work is completed, so that the EDA staff can review the project.
By submitting a grant application, the applicant agrees to the terms herein.
Should you have any questions, please contact Amy Peregoy, Grant Administrator, via e-mail or by calling 540.372.1216.
Please note that the EDA also provides low interest loans to small and growing businesses in the City of Fredericksburg (22401) through its InvestFXBG loan program. InvestFXBG seeks to support both new and established city businesses in critical stages of their growth. Applicants should consider whether an InvestFXBG loan better suits their needs.