5 and 10 Loan Program

The Economic Development Authority (EDA) of Floyd County has a low-interest loan program for small businesses in Floyd County.

The “5 and 10” loan program will provide low interest loans of $5,000 to $45,000 to qualified small businesses.

The purpose of the Small Business Loan Pool program is to provide low-interest, fixed-asset financing to existing or new small businesses that locate to or expand Floyd County and which result in the creation or retention of jobs. (Here, “small business” is defined as a business having 49 or fewer employees.)

The type of financing is fixed-asset financing. The annual interest rate will be 2% for a 5-year term and 4% for a 10-year term.

Funding for the “5 and 10” Small Business Loan Pool is provided by the United States Department of Agriculture’s Rural Business Enterprise program and the Economic Development Authority (EDA) of Floyd County.

Information required of Applicants

  1. Completed and signed application
    • Loan Request Worksheet
    • Personal Financial Statements
    • Credit Authorization Form
    • Balance Sheet, Profit & Loss Statement (AP & AR for current 90 day period)
    • Copy of Most Recent Tax Return
    • Disclosure Statement(s)
    • Business Lease/Deed
  2. Current three-year business plan and management info (assistance available)
  3. Personal Credit Report (as appropriate)
  4. Three business references
  5. Copy of collateral offered & current market value (title, deed, security paper, etc)
  6. Statement indicating what the loan will be used for.
  7. See attached document, “5 and 10″ Small Business Loan Pool Program Design” for additional information on the loan application process.

Please note that unfortunately, farm businesses are not eligible for this program according to USDA rules, but the EDA is actively looking for funds to start a pool for farming.
USDA is an equal opportunity provider, employer, and lender.

  • Start Your Business Starting a successful business begins with an idea and grows as you research and develop it with good feedback…
  • Grow Your Business  If you’re ready to take your business to the next level, we offer various means of support…
  • Join our Business Community There are so many reasons to come to Floyd. Maybe you’re ready for the perks of small-town living…

Are you eligible?

  • Is your business located in Floyd County?
  • Do you have 45 or fewer employees?
  • Are you interested in creating or saving at least one job?

What if I don’t have a business plan yet?

Use the Simple Business Plan template to capture key elements of your business. We will also need estimates of your expected sales and expenses over the next couple years or so. If you need help, just ask us.

What counts as a job?

You can apply for up to $5,000 per job to be created within the next 3 years. For the purposes of this application, a job is employment for at least 30 hours/week. Two part-time jobs count as full-time if they add up to 30 hours/week. If the owner/s will work full- or part-time at the business, those hours count in the job total, too.

What can I use as collateral?

Real estate, vehicles, and equipment may be used as collateral. If someone other than the applicant is the owner or co-owner of the property, they must sign a document agreeing that the property may be used as collateral. Please give the estimated value of the collateral, and the rationale for that value (e.g. blue book value, assessed value, etc.). We will need collateral worth at least 130% of the loan amount because often the collateral depreciates faster than the loan is paid down.  If someone else already has a lien on the collateral and the EDA is asked to take second position, then you may need a formal appraisal to determine whether the value is enough to cover both.

What can be financed for 10 years?

For real estate or major equipment we can do 10-year loans with a fixed 4% annual interest rate (as long as loan payments are kept current.) For other purposes, we can do a 5-year loan with a fixed 2% annual interest rate (again, as long as payments are kept current.) You will list on the front page of the application what you propose to do with the loan funds if approved.

How long does this application process take?

Just so you’ll know the process, as soon as we get your complete application (with all required documents), we will call together our loan committee to meet with you. They then make a recommendation to the full EDA. If approved, your application still has a couple more steps to go through, including setting up the loan closing. Expect the entire process to take 2 months or so from time of submission to loan closing.

Helpful Documents

5 and 10 Loan Application

Download PDF file

Sample Business Playbook

Download PDF file

Startup Projection Worksheet

Download Excel Spreadsheet



Featured Resources

Please reach out to us to get a hard copy if preferred.

Floyd County Economic Development Brochure

If your business is expanding and
you are looking for a small-town
environment where skilled talent is
easy to find, we want you to take a
good look at Floyd, Virginia.






Floyd County Welding Workforce Brochure

Floyd County High School’s welding program has graduated about 500 students. Welding program graduates have worked with a wide variety of materials, become skilled in blueprint reading and taking accurate measurements, and achieved Six Sigma yellow belt status.




Floyd County Business Toolkit

Includes a business start-up checklist, business plan template, Floyd and regional contacts for business support, plus business regulatory guidance, key links, and funding/financing resources.





Download Toolkit