AFID Facility Grants

Discretionary, performance-based economic development grant from the Governor's Agriculture and Forestry Industries Development (AFID) Fund for agriculture/forestry value-added or processing projects. A facility grant is awarded to a political subdivision for the benefit of a company whose new or expanding facility the grant is critical to; supports agribusinesses of all sizes including produce companies, dairy processors, meat and poultry processors, specialty food and beverage manufacturers, greenhouse operations, forest-product manufacturers, and aquaculture projects.

Awarded to a Virginia political subdivision (locality) for the benefit of a qualifying agribusiness that is establishing or expanding a value-added or processing facility. Interested businesses work through their local economic development office.

Maximum grant: "The maximum AFID Facility grant allowed to any one project is capped at $500,000. In unique circumstances, this limit may be exceeded for projects that are determined to be of statewide or regional importance." No minimum is published — the amount and terms are set by the Secretary of Agriculture and Forestry and approved by the Governor.

Local match — 1:1, required: "A dollar-for-dollar match, in cash and/or in-kind... from the locality is required for every AFID dollar requested." The match can be in-kind (infrastructure development, fee waivers, or free or reduced-price land or buildings). Previously invested local funds, other government grants, and private contributions do not count. Tobacco Region Opportunity Fund grants may cover up to one-half of the match. The Governor may waive or reduce the match for projects of statewide or regional importance. Matches "generally must be made within three years of the AFID Facility grant award and may not be spread out over more than five years."

Performance-based payout with clawback: grants "are generally paid out on a performance basis" and are not front-end financing. The grant is split into thirds: "AFID Facility grants are broken into 33% for purchase of Virginia grown products, 33% for new jobs and 33% for capital investment." Miss a target in any category and the locality must claw back a proportionate amount. A 100% clawback of all grant funds is triggered if the locality or the Secretary concludes the business cannot meet at least half (50%) of any one of the three targets.

Performance period: "Generally, the performance date will be the date 36 months after the date of award." If the business has not hit 90% of its targets at least 60 calendar days before the performance date, the locality may grant a one-time extension of up to 15 months.

Virginia-grown content: a minimum of 30% of the agricultural or forestal products the facility adds value to must be produced in Virginia on an annual basis in normal production years. Higher percentages earn additional consideration in ranking.

Who holds the grant: the grant goes to the locality (a political subdivision), not to your business. The locality signs a performance agreement with you before it can receive the funds. Work through your local economic development office.

Contact the local economic development office or the VDACS Office of Agriculture and Forestry Development; grant amount and terms are determined by the Secretary of Agriculture and Forestry and approved by the Governor. Review the AFID Facility Grant Program Guidelines.