NORFOLKFIRST

FUNDS INNOVATIVE ACCESS TO CAPITAL PROGRAMS

ab o u t

NORFOLKFIRST Is our brand strategy. Goals are set to create a local economy which affords access to opportunity for all Norfolk residents. It fosters vibrant mixed-income residential neighborhoods, supports and expands our tax revenue base and harnesses Norfolk’s competitive advantages as a diverse urban center. NORFOLKFIRST creates an environment that is favorable for and invites investment.

NORFOLKFIRST Multi-Disciplinary Organizational Strategy for Economic Development Business Development

Revitalization & Redevelopment

Access to Capital & Reinvestment

Attraction, Retention, Expansion

Catalytic Redevelopment Sites

Capital Formation

International Development

Neighborhood Revitalization

Direct Lending

Emerging & DBE Tech Assistance

Downtown Development

Special Initiatives

Business Attraction core activities include direct engagement or site and location consultants. rigorous research info and targeting of companies exploring relocations. responding to solicitations from companies seeking to relocate. administration of industry-and sectorspecific incentive overlay zones. marketing missions in coordination with selected partners. Retention and Expansion core activities include Administration of financing tools to help address the capital needs of expanding businesses. Management of a tiered NORFOLKFIRST program targeting local employers of all sizes. Leveraging City and NRHAowned sites for local company expansions.

Financial Services & Reinvestment: hhDirect lending utilizing federal dollars

Core Activities

hhUnderwriting of “synthetic” and bond-based tax increment financing deals

hhCapital “formation” and acquisition

(e.g., community development venture capital, tax credits)

Workforce Innovation Brokerage of Partnerships

Program & Policy Development

hhHealthcare / Life Sciences hhMaritime / Supply Chain hhDefense / Cybersecurity hhInnovation / Technology /

Manufacturing

hhHeadquarters hhPolicy Associations hhCreative / Artisanal / Film hhRetail hhRenewable Energy/Resiliency

INNOVATION

FUND

The Innovation Fund has been designed to help local entrepreneurs and expanding businesses obtain capital that might otherwise not be available. The structure of this investment product will provide flexible, patient capital which is necessary for our local entrepreneurs to plant seeds of a business and grow. The City of Norfolk will not take an ownership stake in the businesses it funds. For application information, see http:// NorfolkDevelopment.com/business-assistance/norfolk-first-funds

Maximum Investment Amount: . . . . . . . . . Up to $150,000

Minimum Investment Amount: . . . . . . . . . As low as $50,000 Non-refundable Loan Application Fee:. . . $250   Terms:

ÝÝ Loan terms will be 2-5 years with the opportunity to restructure the debt portion up to a maximum of 7 years ÝÝ Low interest rates of about 5 1/2 %

A portion of the loan will be forgiven after five years, provided that the business has hired moderateincome employees and met other objectives of the federal program that supports this fund.   Eligible Loan Purposes: Start-up costs necessary for new businesses   Eligibility: ÝÝ Applicant must have all business licenses, be located in the City of Norfolk, and meet collateral and guarantee requirements ÝÝ Funds are available for early stage entrepreneurs ÝÝ For applicants to be considered, they must work in the following fields: Technology: The Fund will support businesses whose game-changing technologies create new opportunities and efficiencies for The City’s economic pillars – maritime, health services, banking/legal services, and the military. The Fund is particularly interested in data science innovations for these economic pillars. Sustainability and Resiliency: The Fund will support businesses whose game-changing technologies create new opportunities and efficiencies for The City’s resilience initiative, with particular interest in technologies contributing to the development of the “21st Century Sustainable Coastal City” concept. Healthcare: The Fund will support businesses whose game-changing technologies create new opportunities and efficiencies for healthcare providers, for bioscience research and product development, and for medical teaching institutions. Life Sciences: The Fund will support businesses whose game-changing technologies create new opportunities and efficiencies in emergent life science fields such as sports medicine and nutrition that commonly use technologies to advance their emergence.

NORFOLKFIRST

FUNDS INNOVATIVE ACCESS TO CAPITAL PROGRAMS

CITYWIDE PARTNERSHIP

FUND

The Citywide Partnership Fund is a loan program that provides financial assistance to new and expanding businesses within the City of Norfolk. The goal of this fund is to stimulate economic development activities and encourage private investment that will create permanent employment opportunities in Norfolk for low to moderate-income residents.

Maximum Investment Amount: . . . . . . . . . Up to $75,000

Minimum Investment Amount: . . . . . . . . . As low as $25,000 Non-refundable Loan Application Fee:. . . $250

Interest Rates:. . . . . . . . . . . . . . . . . . . . . . . . . . Low fixed and variable rates

Eligible Loan Purposes: �������������������������������� Property and land acquisition; Infrastructure costs; Construction; Rehabilitation; Working Capital; Machinery & Equipment financing; Leasehold improvements; Expansion costs; other qualifying uses that comply with federal guidelines Terms:

ÎÎ Loan terms will range from 2 years up to 20 years depending on the nature of the project and use of funds ÎÎ Low interest rates

Eligible Loan Purposes: Start-up or expansion costs necessary for small businesses in Norfolk  

Eligibility:

ÎÎ Applicant must be able to demonstrate that the project meets federal guidelines ÎÎ Applicant must have all business licenses and be located in the City of Norfolk ÎÎ Applicant and/or owner may not have delinquent taxes or tax liens ÎÎ Applicant must have financial statements and cash flow projections that demonstrate sufficient revenue to service all related debt ÎÎ Applicant must provide adequate collateral and guarantees of all owners to secure the loan ÎÎ Applicant/borrower must be a legal U.S. citizen or have long-term alien residency status. In addition, no loans can be made to individuals and/or businesses included on the Office of Foreign Assets Control Sanctions List ÎÎ Applicants must not have any outstanding loans with the Economic Development Authority of Norfolk ÎÎ Applicant must submit a completed application and provide supporting documentation requested in the Application Checklist

GROW NORFOLK

FUND

The energy of small business is a key component of a healthy community and a thriving economy. We seek to fuel that growth by supporting eligible small businesses that have needs beyond a conventional lender’s profile. Working in partnership with National Development Council’s (NDC) Grow America Fund, The City of Norfolk can help support the creation of jobs and the expansion of eligible small businesses in underserved areas, particularly minority and women-owned businesses. The financing provided is partially guaranteed by the U.S. Small Business Administration, and is administered by NDC.

Maximum Investment Amount: . . . . . . . . . Up to $500,000

Minimum Investment Amount: . . . . . . . . . As low as $150,000

Loan Features: ����������������������������������������������� Longer Terms using repayment schedules up to 25 years Lower Down Payments Lower interest rates Better Structure matching the term of the loan to the life of the assets being financed, ensuring debt service does not exceed available cash flow Eligible Loan Purposes: Purchase land or buildings; new construction as well as expansion or conversion of existing facilities; acquire equipment, machinery, furniture, fixtures, supplies or materials; obtain long-term working capital including accounts receivable and/or the purchase of inventory   Eligibility:

ÎÎ Applicant must have all business licenses and be located in the City of Norfolk ÎÎ Applicant and/or owner may not have delinquent taxes or tax liens ÎÎ Business must be operating for a minimum of 3 years ÎÎ Business revenue must be a minimum of $500,000 ÎÎ Business must have a minimum of 4 employees ÎÎ No real estate investment or development projects ÎÎ No financing entities

GLOBAL

INITIATIVES

FUND

The City of Norfolk Department of Development has established the Global Initiatives Fund (GIF), a groundbreaking initiative that will support local exporters by providing patient, flexible capital to fund their export related activities. This innovative demonstration program will serve small and medium sized enterprises that seek to expand their presence in the global marketplace, and will also serve as a platform for the City to engage with the local exporting community. Additionally, the GIF is the first global commerce initiative of its kind to be launched by a local government institution in the Commonwealth of Virginia and in the United States.

Maximum Investment Amount: . . . . . . . . . Up to $50,000

Minimum Investment Amount: . . . . . . . . . As low as $25,000 Non-refundable Loan Application Fee:. . . $250

Interest Rates:. . . . . . . . . . . . . . . . . . . . . . . . . . Low fixed rates

Eligible Loan Purposes: Funds can be used for market research and development; travel and communication expenses; participation in trade missions; cost of professional services necessary for exporting; license and fee expenditures; or working capital necessary for production of goods and services   Eligibility:

ÎÎ Applicant must have all business licenses and be located in the City of Norfolk ÎÎ Applicant and/or owner may not have delinquent taxes or tax liens ÎÎ Applicant must have financial statements and cash flow projections that demonstrate sufficient revenue to service all related debt ÎÎ Applicant must provide adequate collateral and guarantees of all owners to secure the loan ÎÎ Applicant/borrower must be a legal U.S. citizen or have long-term alien residency status. In addition, no loans can be made to individuals and/or businesses included on the Office of Foreign Assets Control Sanctions List ÎÎ Applicant must submit a completed application and provide supporting documentation requested in the Application Checklist

APPLICATION REQUIREMENTS

ÎÎ All borrowers must complete and sign the relevant loan application specific to the investment program in which they are seeking financing. There will be a $250 non-refundable application fee. The application is available on line at www.norfolkdevelopment.com or at the Economic Development Authority of the City of Norfolk’s office located at 500 E. Main Street, Suite 1500, Norfolk, Virginia 23510. ÎÎ All questions regarding the application should be directed to Norfolk Department of Development’s Chief Investment Officer. ÎÎ Borrower must provide the following for an application to be considered complete: ÎÎ Signed Loan Application ÎÎ Signed Personal Resume for all principals with a 20% or greater ownership in the applying entity and key management ÎÎ Freedom of Information Act Disclosure acknowledged by authorized representative for the applicant as well as all principals with a 20% or greater ownership interest in the applying entity ÎÎ Completed Company Profile form ÎÎ Signed Business Debt Schedule ÎÎ Signed Personal Financial Statement for all principals with 20% or greater ownership in the applying entity. Personal Financial Statements should not be more than 90 days old ÎÎ 3 years signed business tax returns ÎÎ 3 years signed personal tax returns (for all principals with a 20% or greater ownership in the applying entity) ÎÎ Three most recent years of company’s financial statements (balance sheet, income statement & statement of cash flows), current year to date interims statements ÎÎ A business plan for any company that has been in existence less than 2 years. The business plan should provide detailed projections related to the entity and the project itself ÎÎ Description of collateral ÎÎ Organizational documents: Norfolk Business License for sole proprietors; Partnership Agreement for partnerships; Articles of Organization for LLC along with operating agreement if there is more than one member; Articles of Incorporation for corporations along with by-laws ÎÎ Other related information as needed ÎÎ Stamp all documents confidential

}

VISiT NORFOLK DEVELOPMENT.COM TO DOWNLOAD APPLICATIONS: ÎÎ ÎÎ ÎÎ ÎÎ

Innovation Fund

Citywide Partnership Fund Global Initiatives Fund

For the Grow Norfolk Fund, please remit a project summary for consideration.

All Inquires are to go to: Leslie Osborn Chief Investment Officer Norfolk Development 500 East Main Street Ste. 1500 Norfolk, Virginia 23510 [email protected] 757-664-4338

ÎÎ

NORFOLKFIRST OPPORTUNITY SITES

FORT NORFOLK

TIDEWATER DR SOUTH

DENBY PARK/LITTLE CREEK

WARDS CORNER

SAINT PAULS

DOWNTOWN

HARBOR PARK

SOUTHSIDE

NEWTOWN

Opportunity sites are larger areas targeted for major revitalization or reinvestment. Development partners may be solicited for City & NRHA-owned Properties. Privately-owned assets could benefit from NORFOLKFIRST financing strategies MILITARY CIRCLE

NORFOLKFIRST PRIORITY NEIGHBORHOOD COMMERCIAL DISTRICTS

Priority neighborhood commercial districts are unique retail corridor-anchored communities targeted for small business support, vacant property rehab and other services. Core revitalization activities include technical assistance for small businesses to start, improve or grow. The business café program provides a structured series of local, state and federal partners coming to communities. NORFOLKFIRST funds can be utilized for qualifying facade improvements, marketing etc.