Local Government Direct Loan Program

VRA provides financing to local government for essential infrastructure projects.  VRA’s authorized project areas are eligible for financing in the Virginia Local Government Direct Loan Program (DLP). In fiscal year 2024, VRA’s Board of Directors authorized funding for short-term loans and small loans on behalf of Virginia local governments to support infrastructure projects. 

Downloadable Application

VRA Virginia Local Government Direct Loan Program Application

The unique structure of the DLP provides value added benefits, including:

  • Competitive interest rates
  • Custom-Tailored loans
  • Straightforward process
  • Loan terms up to 30 years, or the estimated useful life of the related assets
  • Access to the best service and results


  • Small loan financing (loans of $250,000 to $750,000) that would otherwise be inefficient to finance through other existing VRA programs
  • Provide fixed-rate loans with terms greater than 20 years that are not typically available from traditional funding sources
  • Short-term financing in the form of bond anticipation notes (BANs), grant anticipation notes (GANs), or other interim funding prior to the issuance of long-term financing through another VRA program (i.e. the Virginia Pooled Financing Program, Clean Water Revolving Loan Fund, Drinking Water Revolving Loan Fund, etc.)

Eligible Borrowers:

  • Virginia local governments, as defined in the Virginia Resources Authority Act, Chapter 21 of Title 62.1 of the Code of Virginia, as amended.

Authorized Project Areas:


Solid Waste



Public Safety

Brownfield Remediation


Affordable Housing (local government supported)

Flood Prevention / Dam Safety

Land Conservation / Preservation

Parks & Recreation



Local Government Buildings

Site Acquisition / Development

Administrative & Operations Systems













Interest Rates and Loan Terms

  • Fixed interest rate at prevailing market rates based on comparable cost of funds available to VRA in the public debt markets
  • Loan terms up to 30 years, not to exceed the estimated useful life of the financed asset

Loan Security

  • General obligation, lease revenue, system revenue, special fund revenue pledge
  • Loan security is subject to VRA credit approval and based on existing underwriting criteria adopted by VRA’s Board of Directors


  • After the first closing anniversary, prepayable anytime without penalty

Costs of Issuance

  • VRA lender’s counsel
  • May include local bond counsel and local financial advisor (if applicable)
  • Loan-funded local costs of issuance limited to 5% of loan principal amount


  • No additional VRA fees
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