Lynchburg: A thriving city for businesses

There’s a reason why Lynchburg is among Forbes’ Top 100 Best Small Places for Business and Careers. From low unemployment rates, even lower cost of living and a competitive average cost of doing business, Lynchburg offers many local initiatives that businesses need to prosper. When your business is ready to invest in Lynchburg and our workforce, we are ready to support you through targeted investments that provide immediate returns and long-term benefits for Lynchburg citizens. Below is a sample of incentives and credits available to eligible firms relocating to or expanding in Lynchburg. All incentives are subject to modification, the availability of funds and review and approval by the Lynchburg Economic Development Authority. For more information, please contact the Office of Economic Development at 434-455-4490.

Download Incentive Guide

Local Initiatives

Enterprise Zones

The City of Lynchburg boasts two Enterprise Zones providing investment incentives covering 4,200 acres of commercial property. In our Enterprise Zones, state and local incentives combine to support existing business expansion and new business relocation. Incentives include cash grants for real estate investments and job creation, along with local benefits for qualifying investments.

Real Property Investment Grant

  • Qualified real property investments in a commercial, industrial or mixed-use building or facility within the boundaries of a designated Virginia Enterprise Zone (requires at least 30% commercial space)
  • 20% cash grant for real property rehabilitation investments above a $100,000 threshold
  • 20% cash grant for new construction investments above a $500,000 threshold
  • Grant capped at $100,000 for investments less than $5 million
  • Grant capped at $200,000 for investments of $5 million or more

Job Creation Grants

  • Cash grant up to $800 per job per year for five years
  • Requires creation of five jobs or more
  • Requires wages equal to or above 175% of the Federal minimum wage with benefits
  • Personal service, retail, food and beverage positions are not eligible
  • Grant will be based on the wages paid for those grant eligible positions

2016 How to Apply Workshop Presentation (PDF)

Interactive Enterprise Zone Activity Map 

EDA Capital Investment Program

Incentive value in the form of cash, infrastructure improvements or other support as determined by the EDA may be given for eligible capital investments. All taxes generated by capital investment (business personal property, machinery & tools, real estate improvement, etc.) must generate a positive return on investment over a 36-month period, which is subject to verification and the terms of a performance agreement. This program includes a maximum incentive equivalent to 2% of the capital investment up to $10 million or 1% of capital investment over $10 million, with a cap of $350,000.

EDA Job Creation Grant

The Job Creation Grant offers incentive value  in the form of cash, infrastructure improvements or other support as determined by the EDA to support large-scale employment expansion. Grant value may be up to the value of a 2% increase in annual payroll of FTE positions with health benefits if base employment is increased by more than one-third or thirty net-new positions, whichever is greater. This grant opportunity requires an annual payroll audit and a performance agreement.

Local Redevelopment Program

Designed to support small- and medium-scale investments in commercial property within the city’s Enterprise Zones, the Local Redevelopment Program supports a portion of qualified expenditures. Property requires at least 20% commercial use. Proper permitting is required to qualify, and submitted project costs are verified by building permit. Applications must be completed within 30 days of beginning work. For more information and application forms, please contact the Office of Economic Development at 434-455-4490 or email

Real Estate Rehab & Renovation Tax Credit

This tax credit opportunity effects Residential, Multi-Family, and Commercial and Industrial spaces. Effective in January 2018, residential rehabilitation projects will be offered up to 10 years of real estate tax exemption on the improved value of the home. Multi-Family properties, those representing five or more units, will receive eight years of tax exemption. Commercial and Industrial properties will be given up to ten years of tax exemption on the improved value of rehabilitation and renovation. This effort has the potential for job creation for commercial and industrial uses.

For more details, see the attached flyer, or contact the City Assessor at (434) 455-3830.

Industrial Park Property

The Lynchburg Economic Development Authority owns and manages two industrial parks. For major qualifying investments, the EDA may offer sale or lease of property at attractive rates, build-to-lease or build-to-own arrangements, site preparation infrastructure improvements and/or other development assistance.

Financing: Loans, Grants and Bonds

The Lynchburg EDA and Economic Development Office offer business and development financing ranging from local capital up to $250,000 from a revolving loan fund to tax-exempt industrial revenue bonds. We can also connect your business to microloans and other small-business financing and assist in applications for SBIR and STTR.

James River Arts & Cultural District Program

Arts & Cultural businesses located within the city’s James River Arts & Cultural District are eligible for reimbursement of certain business license taxes, along with regulatory flexibility as applicable and approved. Contact our office at (434) 455-4490 for more information about placing your business in the Arts District.

The Office of Economic Development also manages the Arts District grant fund for nonprofit organizations, businesses and individuals wishing to participate or complete arts-related projects in the District. Click below for additional information and resources.

Learn More


Business Development Center Assistance

The Lynchburg Business Development Center provides business assistance services to entrepreneurs, new business owners and existing small business owners. The LBDC can assist with business and marketing plan development as well as financing. For more information, contact the LBDC at or 434-582-6100.

Tourism Zone

In September 2015, the Lynchburg City Council established the entire city as a Tourism Zone in order to promote the continued development and success of tourism-based businesses. Tourism projects in the city may be eligible for the Commonwealth of Virginia’s Tourism Development Financing Program, a gap financing program managed by the Virginia Tourism Corporation and the Virginia Resources Authority. Contact Anna Bentson at for more information.

Tourism Development Financing Program

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