Virginia Announces $50 Million Investment for Business Development

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Landscape showcasing new business sites in Virginia

News Summary

Virginia has unveiled a $50 million investment in the Virginia Business Ready Sites Program (VBRSP) aimed at accelerating business development and job creation. This initiative builds on a previous commitment of $282 million and aims to prepare sites for operational readiness, enhancing economic growth. The program emphasizes partnerships and funding for localities, including plans for workforce housing to address the housing shortage amid job growth. Key investments from major companies underscore the importance of this initiative in supporting Virginia’s economic landscape.

Virginia has announced a significant $50 million investment aimed at enhancing the Virginia Business Ready Sites Program (VBRSP) in 2026. This funding seeks to accelerate business development by creating more sites that are ready for business operations and subsequently drive job creation and economic growth across the state.

This latest investment builds on over $282 million previously committed by the state’s administration, under Governor Glenn Youngkin, focusing on statewide site development. Governor Youngkin underscored the importance of business-ready sites, stating they are key to driving job creation and fostering economic progression in Virginia.

Recent successes highlighted include substantial investments from major companies. Microporous, for instance, plans a $1.35 billion investment in Pittsylvania County, which is expected to create more than 2,000 jobs through the establishment of a new 500,000-square-foot facility. Additionally, the LEGO Group is set to invest over $1 billion in Chesterfield County, generating more than 1,700 jobs alongside the development of a large precision manufacturing plant covering 1.7 million square feet.

Enhancing Business Readiness

The VBRSP, managed by the Virginia Economic Development Partnership (VEDP), plays a pivotal role in certifying and preparing various sites across the state to meet a wide range of business requirements. The program emphasizes collaboration among state, regional, and local partners, including environmental and utility professionals, to ensure thorough assessments and responsiveness to diverse business needs.

To keep pace with evolving business demands, investments made within the VBRSP are competitive. The fund allocations are awarded through a dedicated investment committee focused on accelerating site readiness and improving necessary development infrastructures. VEDP officials have noted the necessity for consistent and competitive funding to support ongoing site development and achieve long-term economic objectives.

Funding Initiatives and Future Applications

In the period between 2022 and 2024, Virginia has committed over $282 million to assist localities in assessing site readiness and contributing to development efforts. Among this, $126 million was allocated in August 2024 to 23 different localities. Currently, the VBRSP is reviewing applications for an additional $40 million designated for fiscal year 2025, with plans to announce grant awards in the summer of 2025.

Applications for the new $50 million are slated to open in the latter half of 2025, with awards expected to be distributed the following year. Furthermore, as part of a comprehensive strategy to support economic growth, the Governor has proposed a new executive order committing $75 million towards workforce housing development over the next five years.

Addressing Housing Needs

A study conducted in 2022 pointed out a shortage of around 200,000 affordable housing units within Virginia, further amplifying the demand for housing development to support economic vitality. The newly established Workforce Housing Investment Program will provide financial assistance through loans, grants, and subsidies targeted at localities and nonprofits, encouraging housing development near new job opportunities.

Local governments that wish to utilize the Virginia Business Ready Sites Program must now propose housing plans to align with job growth. The housing initiatives will specifically target regions with the most significant job growth disparities, notably in Southwest Virginia, intending to create approximately 5,000 new housing units.

Analyses from Virginia’s housing department indicate a marked growth in areas such as Northern Virginia, Northern Shenandoah Valley, and Richmond, while some rural regions have faced job losses. Support from additional funding programs, including the Virginia Tobacco Region Revitalization Commission’s pilot for workforce housing funding, will contribute to these efforts.

Virginia’s Commitment to Economic Development

The VBRSP is recognized as a national leader in site development, attributed to its innovative funding models and effective alignment with localities. The state remains focused on boosting economic growth through strategic investments in business and housing, affirming its ambition to retain its position as “America’s Top State for Business.” The outlined initiatives and funding strategies signal a robust commitment to both site development and workforce housing advancement in Virginia.

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