VCEDA board approves $1.65 million in projects
VCEDA Executive Director/General Counsel Jonathan Belcher, second from left, provides an update on VCEDA activity since the last board meeting. Also pictured, from left, are VCEDA board members Brian Hess, Greg Edwards and Andy Hrovatic.
A total of $1.65 million in funding was approved for 26 new projects, including 19 seed capital matching grant projects, during a meeting of the Virginia Coalfield Economic Development Authority (VCEDA) Board in Lebanon, VA, Thursday.Projects were funded in all seven counties in the VCEDA region.
VCEDA Executive Director/General Counsel Jonathan Belcher told board members since the last board meeting, activity has focused on lead generation efforts, outreach marketing events, seed capital and other applications in addition to assisting the Coalfields Expressway Authority.
“Manufacturing, information technology and seed capital -- small business startups -- are currently the most active sectors as far as active projects,” Belcher said.
He noted a new regional image booklet has been completed and sites and buildings brochures for the region are now in the process of being updated.
“Timmons Group continues to work on the study to identify new industrial sites in the region,” Belcher said, adding, “the new lead generation campaign for the Intersection Business Park is now underway and a new site brochure for that location has been developed.”
Seven new loans and grants, not including the 19 seed capital projects approved during the meeting, were also approved Thursday and included the following:
- An up to $360,000 loan to the Russell County Industrial Development Authority (IDA) was approved to be used to finance the purchase of real estate in the Hansonville area of Russell County, VA and for costs associated therewith.
- An up to $404,930 grant to the Southwest Virginia Community College Educational Foundation, Inc. from the VCEDA Coalfield Workforce Development and Training Fund was approved to be used for workforce development and training, including for scholarships for the emerging workforce, training instructional costs, customized workforce training for area businesses, work-based learning opportunities, costs of assessments and costs of administering National Career Readiness Certificate and other workforce testing for residents and/or workers in the VCEDA region. The funds will also be used to purchase orbital welding units for training purposes and for funding support for the Small Business Development Center (SBDC) at Southwest Virginia Community College.
- An up to $250,000 grant to the Buchanan County Industrial Development Authority (IDA) was approved to be used to finance planning, design, engineering, permitting and costs associated for an additional new water tank to serve the Southern Gap development in Buchanan County, VA.
- An up to $196,667 grant to the Mountain Empire Community College Foundation from the VCEDA Coalfield Workforce Development and Training Fund was approved to be used for workforce development and training -- specifically, for costs and expenses of the Small Business Development Center (SBDC) at Mountain Empire Community College.
- An up to $95,000 grant from the VCEDA Civil Penalties Fund to the Breaks Interstate Park Commission was approved to be used to develop infrastructure and improvements at the Breaks Interstate Park, Ratliff Hole River Access Area to include renovation of restroom facilities, repaving the entrance road and parking lot, bank stabilization and other improvements.
- An up to $80,000 grant to the Buchanan County IDA was approved to be used to finance a feasibility and economic impact study and pilot test of manufacturing Small Vertical Wind Turbine Energy Recovery Systems in Buchanan County.
- An up to $75,000 grant to the Napoleon Hill Foundation from the VCEDA Coalfield Workforce Development and Training Fund was approved to be used for workforce development and training to assist with the continued development and implementation of an online interactive course in entrepreneurial skills for high school students in the VCEDA region and costs associated therewith.
Seed capital matching grant projects were approved at $10,000 each at the meeting for 19 businesses, including: DMG Sewing LLC, RKB Enterprises, LLC, Rice Construction Services, Inc. and Southern Gap Enterprises, LLC, all in Buchanan County; Tasty Treats Drive-In LLC in Dickenson County; Appalachian Asenso LLC, Jimmy’s Pit Stop BBQ, LLC, Parea & Psomi LLC d/b/a BB’s Bakery & Café, all in Lee County; Eaton Power Solutions, LLC, Plush Frog Designs, LLC, Redbud Creamery, LLC and Roadhouse Operations LLC d/b/a Blue Nose Aerial Imaging of Southwest Virginia, all in Russell County; Southern Ridge Design LLC in Scott County; Big Blue Art LLC, Kandi Kakes, LLC, Seagull Seafood LLC and Wimmers Woodlands LLC, all in Tazewell County; and Lawson Custom Builders, LLC and K&A Customz LLC, both in Wise County.
The board set an application deadline of October 15, 2026 for the fall round of seed capital grants and agreed to work on finalizing the development of a seed capital training academy with the Small Business Development Centers at Mountain Empire Community College and at Southwest Virginia Community College to assist new business start-ups. In the future, the training program will be tied to eligibility for the VCEDA seed capital matching grant program.
In other business, the board approved its Fiscal Year 2027 budget; established an annual marketing stipend for FY2027 of up to $10,000 for each of the eight county/city industrial or economic development authorities in the VCEDA region; and approved $250,000 for the VCEDA Coalfield Jobs Investment Project (a workforce training grant program) for FY2027.
The board also approved the VCEDA/Southwest Virginia’s e-Region Business Development Plan for Fiscal Year 2027 as presented and discussed the FY2026 and FY2027 marketing calendars, lead generation campaigns, business development updates, existing industry reports and active projects.
In other action, the board agreed to forgive and convert into a grant the remaining outstanding principal and interest balance of $99,854.86 on the $200,000 loan approved to Trailhead Lodging, LLC in 2016 based upon Trailhead Lodging having achieved and surpassed the job creation metrics required from 2018 to 2026 under the amended loan agreement.
The board approved a request from the Buchanan County IDA to add the construction of trails and bridges and other improvements concerning the Grassy Creek Trail Project at the Breaks Interstate Park to the eligible uses of the up to $100,000 tourism capital improvement matching fund grant approved to the IDA in 2024. It was acknowledged the Grassy Creek Trail Project is on property owned by the Breaks Interstate Park.
Loan and grant disbursement deadlines were extended on a number of projects, including those for the Scott County Economic Development Authority (EDA) concerning the Tempur Sealy expansion, to June 17, 2027; Buchanan County IDA concerning the Southern Gap medical campus infrastructure, to June 20, 2028; Dickenson County Industrial Development Authority (IDA) concerning an inpatient substance abuse rehabilitation facility, to May 23, 2027; Dickenson County IDA concerning the Haysi Trails Center, to June 20, 2027; and Russell County Board of Supervisors on behalf of the Heart of Appalachia Tourism Authority concerning the Three Rivers Destination Center project, to September 20, 2028.
The board also agreed to approve a request from the Russell County Industrial Development Authority (IDA) to extend the loan closing deadline on an up to $3 million loan approved to the IDA in December 2025 for Project Franklin to a new loan closing deadline of June 16, 2027; and agreed to approve a request from the Scott County EDA to extend the loan closing deadline on an up to $500,000 loan approved to the EDA in December 2025 for Project Delta to a new loan closing deadline of June 16, 2027.
The board also agreed to contingently approve a request from the Russell County IDA and Simmons Equipment Company for the restructuring of several loans related to the buildings leased by the IDA to Simmons Equipment Company in Lebanon, in order to assist the company in utilizing the New Markets Tax Credit program. Additionally, the board agreed to retain special legal counsel to represent VCEDA (and the Russell County IDA, if desired by the IDA) in the matter, with the cost of such representation to be charged to the VCEDA Russell County account.
Lastly, the board recognized retiring board member Tim Stuller, vice president of regional talent solutions and business outreach at the Virginia Economic Development Partnership (VEDP), who is retiring from VEDP. He was presented with a framed certificate of appreciation recognizing his outstanding service in economic development and for his service on the VCEDA board.
The board also recognized Ernie McFaddin, who is retiring as executive director of the Russell County IDA, for outstanding contributions to the economic development of Russell County and Southwest Virginia; and welcomed Laura Gilmer, the new executive director of the Russell County IDA.
