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 licensing (State and local levels) www.bos.virginia.gov • Virginia Business Information Center – Ask anything! 1-866-248-8814 or email@example.com
Business Info Services • Entrepreneur Express Workshops www.vastartup.org • One on One Sales counseling sessions • Growing 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: • MaryJo.SissonVaughan@vdba.virginia.gov
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: WORKFORCE
Program History • Started in 1965 • Virginia’s 2nd oldest economic development incentive program • Grown From 30 to ~500 Projects per Year
Goals MAKE IT EASY • By providing a single point of contact for economic development projects to navigate state and local workforce development resources. FOCUS ON RESULTS • By planning and developing solutions for a company’s unique recruitment and training needs. COMMIT TO LONG-TERM SUCCESS • By providing ongoing support for future growth.
Major Functions • 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
CUSTOMER SATISFACTION Cultural Values High Quality Non-Bureaucratic Continuous Improvement
Avg. Cost per Job – FY11 $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%.
Return on Investment (ROI) 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.
Partnering with the Economic Development Community • Presentations to Prospects • Requests for Proposals • Marketing Virginia’s Work Force and Resources • Estimating Funding
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
THANK YOU! Catherine Hart Senior Project Manager 804-840-9376 Catherine.firstname.lastname@example.org