By CHAD COOPER
[email protected]
Economic development efforts in Buchanan County received a significant boost last Thursday as the Virginia Coalfield Economic Development Authority (VCEDA) approved funding for Southern Gap infrastructure, a wind energy manufacturing study and tourism improvements at Breaks Interstate Park.
The most significant Buchanan County allocation approved by the board was an up to $250,000 grant to the Buchanan County Industrial Development Authority to finance planning, design, engineering, permitting and related costs for an additional water tank to serve the Southern Gap development.
The proposed water tank is intended to support future growth at Southern Gap, one of the county’s largest economic development sites. The development continues to be a focal point of Buchanan County’s long-term strategy to attract new businesses, industry, housing and commercial investment.
The project comes as development activity continues in the Southern Gap area, which is already home to Southern Gap High School and remains the site of ongoing commercial, residential and infrastructure planning.
The board also approved an up to $80,000 grant to the Buchanan County IDA to finance a feasibility and economic impact study along with a pilot test related to the manufacturing of Small Vertical Wind Turbine Energy Recovery Systems in Buchanan County.
The study will examine whether the county could become a location for manufacturing small-scale vertical wind turbine systems and determine the potential economic impact such an operation could have on the local economy. The project is designed to evaluate whether Buchanan County could capitalize on opportunities in the growing renewable energy sector while creating manufacturing jobs and diversifying the county’s economic base.
In addition to the two larger projects, four Buchanan County businesses received seed capital matching grants through VCEDA’s business startup program. Each business was awarded $10,000.
The Buchanan County recipients were DMG Sewing LLC, RKB Enterprises LLC, Rice Construction Services Inc. and Southern Gap Enterprises LLC.
The seed capital matching grant program is designed to help entrepreneurs and small businesses with startup costs and expansion efforts. The grants require matching investment from business owners and are intended to encourage the creation of new businesses and jobs throughout the coalfield region.
VCEDA Executive Director and General Counsel Jonathan Belcher told board members that manufacturing, information technology and startup businesses remain among the most active sectors currently being pursued throughout the region.
“Manufacturing, information technology and seed capital — small business startups — are currently the most active sectors as far as active projects,” Belcher said.
Belcher also updated board members on regional marketing and business recruitment efforts.
A new regional image booklet has been completed, while updated sites and buildings brochures are currently being developed.
“Timmons Group continues to work on the study to identify new industrial sites in the region,” Belcher said. “The new lead generation campaign for the Intersection Business Park is now underway and a new site brochure for that location has been developed.”
Buchanan County also benefited from action involving Breaks Interstate Park.
The board approved an up to $95,000 grant from the VCEDA Civil Penalties Fund to the Breaks Interstate Park Commission for improvements at the Ratliff Hole River Access Area. The project includes renovation of restroom facilities, repaving the entrance road and parking lot, bank stabilization work and other infrastructure improvements.
In a separate action, board members approved a request from the Buchanan County IDA to expand the eligible uses of an up to $100,000 tourism capital improvement matching fund grant previously approved in 2024.
The modification allows the grant funds to be used for construction of trails, bridges and other improvements associated with the Grassy Creek Trail Project at Breaks Interstate Park. During the meeting, it was noted that the project is located on property owned by Breaks Interstate Park.
The board also approved an extension for a previously funded Buchanan County project involving infrastructure for the Southern Gap medical campus. The disbursement deadline for that project was extended to June 20, 2028.
Outside Buchanan County, VCEDA approved an up to $360,000 loan to the Russell County Industrial Development Authority for the purchase of real estate in the Hansonville area.
The board also approved workforce development and training grants totaling more than $675,000.
An up to $404,930 grant was awarded to the Southwest Virginia Community College Educational Foundation through the VCEDA Coalfield Workforce Development and Training Fund. The funding will support scholarships, instructional costs, customized workforce training, work-based learning opportunities, career readiness testing and workforce assessments. The grant will also fund the purchase of orbital welding units for training programs and provide support for the Small Business Development Center at Southwest Virginia Community College.
An additional up to $196,667 grant was approved for the Mountain Empire Community College Foundation to support workforce development programs and operations of the Small Business Development Center at Mountain Empire Community College.
VCEDA also approved an up to $75,000 grant to the Napoleon Hill Foundation to assist with continued development of an online entrepreneurial skills course for high school students throughout the coalfield region.
Nineteen seed capital matching grants were approved during the meeting for businesses across the seven-county VCEDA region. In addition to the four Buchanan County businesses, grants were awarded to companies in Dickenson, Lee, Russell, Scott, Tazewell and Wise counties.
Board members established Oct. 15, 2026, as the application deadline for the next round of seed capital grants and agreed to continue work on a seed capital training academy in partnership with the Small Business Development Centers at Southwest Virginia Community College and Mountain Empire Community College. Participation in the training program is expected to become a future requirement for eligibility in the seed capital matching grant program.
The board approved VCEDA’s Fiscal Year 2027 budget and established annual marketing stipends of up to $10,000 for each industrial or economic development authority in the region.
Members also approved $250,000 for the VCEDA Coalfield Jobs Investment Project workforce training grant program for Fiscal Year 2027 and adopted the VCEDA/Southwest Virginia e-Region Business Development Plan for Fiscal Year 2027.
In other business, the board agreed to forgive and convert into a grant the remaining $99,854.86 balance on a 2016 loan to Trailhead Lodging LLC after the company exceeded job creation requirements outlined in its amended loan agreement.
Several project deadlines were extended across the region, including projects involving Tempur Sealy in Scott County, an inpatient substance abuse rehabilitation facility in Dickenson County, the Haysi Trails Center, the Three Rivers Destination Center project and economic development projects identified as Project Franklin and Project Delta.
The board also approved a contingent request involving the Russell County Industrial Development Authority and Simmons Equipment Company to restructure several loans associated with industrial buildings leased by Simmons in Lebanon as part of efforts to utilize the federal New Markets Tax Credit program.
The meeting concluded with recognition of retiring economic development leaders.
Board members honored retiring VCEDA board member Tim Stuller, vice president of regional talent solutions and business outreach for the Virginia Economic Development Partnership, for his service to economic development and the authority.
The board also recognized Ernie McFaddin for his contributions as executive director of the Russell County Industrial Development Authority and welcomed Laura Gilmer as the agency’s new executive director.
