virginia jobs investment program
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Virginia Jobs Investment Program. April 2, 2012. Dept. of Business Assistance. State Agency – 3 Divisions Business Information Services Small Business Financing Virginia Jobs Investment Program. Business Info Services. - PowerPoint PPT PresentationTRANSCRIPT
Virginia Jobs Investment Program
April 2, 2012
Dept. of Business Assistance
• State Agency – 3 Divisions–Business Information Services
–Small Business Financing
–Virginia Jobs Investment Program
Business Info Services
• Business One Stop Business One Stop – business – business licensing (State and local levels) licensing (State and local levels) www.bos.virginia.govwww.bos.virginia.gov
• Virginia Business Information Virginia Business Information Center Center – Ask anything!– Ask anything! 1-866-248-8814 or 1-866-248-8814 or [email protected]@vdba.virginia.gov
Business Info Services
• Entrepreneur Express Workshops Entrepreneur Express Workshops www.vastartup.orgwww.vastartup.org
• One on One Sales counseling One on One Sales counseling sessionssessions
• Growing Sales SeminarsGrowing Sales Seminars
Small Business Financing
• Direct Loans– Micro Loan – Up to $10,000 for established
businesses– ED Loan Program – up to $1 million for
creating/retaining jobs in distressed regions
– Child Care Loans – up to $150,000 per location for businesses providing licensed child care for workers
Small Business Financing
• Indirect Loans – In conjunction with banks or other lenders– Loan Guaranty Program – up to $750,000– Capital Access Program – funds to offset
enrolled loan losses up to $250,000
• Bond Issuer– 501c3 Industrial & Transportation Facility
Private Activity Bonds
• Contact:– [email protected]
What is VJIP?
The Virginia Jobs Investment Program (VJIP) is a State-funded economic development
incentive supporting Virginia’s business development efforts.
It addresses an economic development prospect’s #1 issue:
WORKFORCEWORKFORCE
Program History
Started in 1965
Virginia’s 2nd oldest economic development incentive program
Grown From 30 to ~500 Projects per Year
MAKE IT EASY By providing a single point of contact for economic development projects to navigate state and local workforce development resources.
FOCUS ON RESULTSBy planning and developing solutions for a company’s unique recruitment and training needs.
COMMIT TO LONG-TERM SUCCESSBy providing ongoing support for future growth.
Goals
Support Virginia’s Economic Development Efforts 302 Prospect Presentations in FY11
Manage a Customized Incentive Program for Each Economic Development Project Funding – Cash Reimbursement to off-set
recruiting and training costs
Not a Tax Credit
Needs Analysis and Resource Development
Major Functions
FY11 Program Results
Type of Project
Number of
ProjectsNumber of Jobs
Amount of Incentives Received
% of Project Budget
New & Expanding Companies 160 3,736 $ 2,708,546 44%
Small Business 349 1,739 $ 1,047,402 17%
Retraining 67 5,599 $ 2,408,699 39%
Totals 576 12,074 $ 6,164,647 100%
FY11 Hampton Roads Region
Type of Project
Number of
ProjectsNumber of Jobs
Amount of Incentives Received
% of Project Budget
New & Expanding Companies 15 386 $ 175,280
Small Business 8 29 $ 17,871
Retraining 9 971 $ 457,548
Totals 32 1,386 $ 650,699 10%
Cultural Values
CUSTOMERCUSTOMERSATISFACTIONSATISFACTION
Non-Bureaucratic
Non-Bureaucratic High Quality
High Quality
Continuous Continuous ImprovementImprovement
$557
Performance-Based Program Reimbursement made after new hire employed
for 90 days
Turnover is not reimbursed.
Range of reimbursement for initial training costs per job created is 10% to 40%.
Avg. Cost per Job – FY11
FY 2011 Projects
2.47-Month Payback
Average Wage $22.43 per hour or $46,654 annually. 386% ROI to Virginia in sales and income taxes.
Return on Investment (ROI)
Presentations to Prospects Requests for Proposals
Marketing Virginia’s Work Force and Resources
Estimating Funding
Partnering with the Economic Development Community
Workforce Dev. Partners
• Virginia Employment Commission• One-Stop Workforce Centers• Workforce Investment Boards –
Opportunity, Inc. & Peninsula Workforce Dev. Council
• Community Colleges – 3 regional• Universities – At least 5• Private Education/Training Providers• Local and Regional Economic Developers
VEDP
• Virginia Guide to Business Incentives– All financial, infrastructure development
grants, tax credits & exemptions.
• Inventory of available buildings & sites for new and expanding business locations.
• Export assistance.
• www.yesvirginia.org
Port of Virginia
• Tax Incentives for Port Users– Income (State); barge; and rail usage tax
credits– International trade facility tax credits– Virginia Manufacturer’s port volume
increase tax credit
• www.portofvirginia.com
Hershey Chocolate Example
• Situation:– Augusta County facility was competing with other
company facilities for expansion in company effort to streamline operations
– Investment was $25MM and 150 new jobs• Actions Taken:
– Worked confidentially with headquarters to make the case for expanding in Virginia
– Company chose to expand Augusta County facility because of the productivity and dedication of Virginia’s workforce
• Results:– Company started with 100 jobs in Virginia in 1981 and
after this expansion will have 900 jobs
Swedwood USA Example
• Situation:– 1st US manufacturing operation for Swedish partner of IKEA– 271 jobs and $85MM Capital Investment (Phase 1)– Site selected = Danville, Virginia
• Actions Taken:– Visited company facilities in Poland and Sweden– Conducted analysis of recruitment and training needs– Identified international corporate culture differences– Introduced local and regional resources
• Results:– Job fairs, pre-hire screening & assessments completed– 22 Virginians initially hired and trained in Poland
VJIP Program Eligibility
Company must be in targeted for-profit business sectors: Manufacturing, distribution, research &
development, inbound call center, information technology (B2B), or corporate HQs (for companies with multiple facilities)
Note: Applies to large and small companies.
New Jobs Program Eligibility
Create 25 New Jobs Paying At Least $10/hr
$1,000,000 Capital Investment
Competitive Project
Small Business New Jobs Eligibility
250 employees or less companywide
Creating at least five (5) net new jobs paying at least $10/hour
New capital investment of at least $100,000
Retraining Program Eligibility
Retraining at least ten (10) full-time employees
$500,000 Capital Investment Minimum wage rate of $10/hour Retraining may be accessed only once
every three years Open to manufacturing firms and
distribution centers only
Small Business Retraining
250 employees or less companywide Retraining at least 5 net new jobs $50,000 minimum capital investment Minimum $10 per hour wage rate Open to manufacturer, wholesale
distribution center, or B2B information technology companies
Retraining may be accessed only once every three years
