Tobacco Region Opportunity Fund (TROF)

The Tobacco Region Opportunity Fund (TROF) is administered by the Virginia Tobacco Region Revitalization Commission to support business attraction and expansion in the Tobacco Region of Virginia. The Commission's overarching goal is to stimulate economic revitalization in localities historically reliant on tobacco-related agriculture and manufacturing. TROF serves as a targeted tool to incentivize projects that bring new capital investment and employment opportunities to the region by offering performance-based grants and zero-interest loans to local government entities. TROF assistance is designed to attract businesses that contribute significantly to the economic base of the region. The Commission prioritizes businesses in traded sectors, meaning those that bring new capital from outside the region rather than circulate existing local funds. This focus excludes retail, food services, and local-only service providers. The program evaluates applications based on factors such as job creation, workforce participation rate, community affluence, prevailing local wages, and the extent of new taxable capital investment. Applications must come from eligible localities or regional political subdivisions within the Tobacco Region. Projects must demonstrate competitiveness and satisfy minimum eligibility thresholds, including the provision of above-average wages for the locality, presence in a traded sector, and a minimum incentive amount of $10,000. Matching funds from non-Commission sources are also required. The incentive amount is determined using a formal estimator tool that considers job creation, average wage, and capital investment. Award authorizations vary depending on the total amount requested, with thresholds for Executive Director, Committee, and Full Commission approvals. The TROF application process includes an optional but strongly encouraged incentive estimate request, which can be submitted through the Commission’s SmartSimple online portal. Applications are accepted on a rolling basis and are reviewed by Commission staff and the Incentives and Loans Committee. Smaller awards under $1 million may be approved administratively, while larger requests require additional levels of review. All awards are contingent upon the signing of a three-party Performance Agreement between the Commission, the applicant (or its industrial/economic development authority), and the beneficiary business. Award disbursement methods include both advance and arrears payments for grants, while loans are only disbursed in advance. In all advance cases, local applicants must secure adequate collateral to protect public funds. The standard performance period is 36 months, with one administrative extension allowed and further extensions requiring Commission approval. Projects that fail to meet performance targets may be subject to repayment (“clawbacks”), with prorated repayments based on missed job or investment targets. Loans may incur an additional 5% penalty if targets are unmet. Contact for the program is available through the Commission at [email protected] or by phone at (804) 225-2027. Detailed documentation, including policies, application forms, and agreement templates, is available via the Commission’s official website. While application deadlines are rolling, funding decisions occur on a scheduled basis in Commission meetings. The program does not have a set expiration date, and deadlines are announced as new application rounds open, ensuring ongoing support for transformative economic development across Virginia’s Tobacco Region.

Ensure project competitiveness and sector eligibility to avoid disqualification; prioritize traded-sector justification and local match documentation.