What is an Enterprise Zone?
The Virginia Enterprise Zone program is a partnership between state and local government that encourages job creation and private investment. Enterprise Zones throughout the state provide two grant-based incentives, the Job Creation Grant (JCG) and the Real Property Investment Grant (RPIG), to qualified investors and job creators within those zones.
The City of Lynchburg manages two Enterprise Zones, providing investment incentives covering 4,200 acres of commercial property. In our Enterprise Zones, both state and local incentives combine to support existing business expansion and new business relocation. In the past few years, the Office of Economic Development has made several thousand additional acres of commercial property eligible for investment grants, and it is paying dividends.
On December 15, 2024, we were notified that Governor Younkin had approved a five-year renewal of the City of Lynchburg’s current Enterprise Zone 2. This renewal was effective January 1, 2024, and will expire on December 31, 2028.
Investment
In 2023, over $450,000 in RPIG grants were awarded to support local real estate, driving more than $4.6 million in capital investment through these projects. In 2023, finalized commercial building permits totaled more than $174.8 million city-wide. Combined with other programs like our Local Redevelopment Program, a total of $600,000 in grant dollars drove over $9 million of capital investment, supported 13 local businesses and created 245 new jobs.
Opportunity
Enterprise Zone 2 includes downtown Lynchburg, and downtown revitalization continues. More than 1100 residents now live downtown, spurring investments in retail, restaurant and service businesses. Two great examples of the results of these investments are the current mixed-use project at 400 12th Street, which was awarded a $500,000 MUMS grant from the Governor and the Department of Housing and Community Development of both Starr Hill Brewery and Three Roads Brewery in 2020, which are still thriving businesses three years after opening.
Expansion
In 2023, Delta Star announced its $30.2 million expansion, resulting in the addition of 149 new jobs. In December of 2023, Framatome announced its investment of $49.4 million in an expansion and the creation of 515 new jobs with an average salary of over $100,000.
How to Apply
Applications for projects completed in calendar year 2023 will be open in February 2024. Completed applications are due to the Department of Housing and Community Development by April 1, 2024. If you are interested in applying, have questions, or would like further information, please contact our Economic Development Manager, Alisha Meador, at alisha.meador@lynchburgva.gov.
To learn more, please view our interactive Enterprise Zone Map, or visit our webpage.
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