The Virginia Jobs Investment Program (VJIP) is a discretionary incentive that provides funding and services to qualifying companies to support new job creation or upskilling in conjunction with new or expanding operations. The cash grant and accompanying services are intended to offset a company’s recruitment and training costs.

The funding for each net new, full-time job created or full-time employee retrained is based on a customized budget determined by an assessment of the company’s recruiting and training activities, as well as the project’s expected benefit to the Commonwealth. The final budget and proposal are approved in advance of the project by the Secretary of Commerce and Trade.

VJIP support is typically for a 36-month period. Companies can be reimbursed 90 days after the new employee is hired (for new jobs programs) or after the retraining activity is complete (for retraining programs).

In addition to direct funding, services provided include holistic talent development support provided by an assigned manager in response to the unique needs of each project. Services include connection to partnerships with state, regional, and local workforce and education providers.

Partners include:
•    Virginia Community College System
•    4-Year Colleges and Universities
•    Virginia Works
•    Virginia Career Works
•    Career & Technical Education Providers
•    Local and Regional Economic Developers

Contact

Tim Stuller 804.545.5733

Eligibility

To determine eligibility, please contact VEDP.

VJIP support is limited to companies that create basic employment for the Commonwealth, meaning the business must derive at least 51% of its revenue directly or indirectly from outside of Virginia, as determined by VEDP.

The project’s average wage compared to the prevailing average wage of the locality, among other criteria, is considered when determining the VJIP grant amount. Only full-time jobs which pay a minimum entry-level wage rate per hour of at least 120% of the Federal Minimum Wage or the Virginia Minimum Wage as defined in the Virginia Minimum Wage Act § 40.1-28.8, whichever is higher, and are offered benefits are eligible for funding. See table in FAQ section for eligible wage thresholds.

While competition with another state or country is only a criterion for companies with more than 250 employees company-wide, the VJIP incentive is intended to induce decision making. Therefore, a VJIP incentive will not be approved for a project that has already been announced publicly.

At the discretion of VEDP, jobs may include teleworking positions held by Virginia residents who are employees of the recipient company.

New Jobs Programs

VJIP New Jobs Programs are a vital component of Virginia’s support of new and existing businesses, both small and large.

VJIP New Jobs Programs can support the following industry sectors:

  • Corporate HQs
  • Distribution Centers
  • Information Technology
  • Manufacturing
  • Research and Development
  • Shared Service Centers

Virginia New Jobs Program

This program supports newly locating or existing Virginia companies that have more than 250 employees company wide. To qualify for assistance, a company must be:

  • Considering another state or country for the new location or expansion.
  • Creating at least 25 net new full-time jobs within 12 months from the date of the first hire.
  • Making a new capital investment of at least $1 million associated with the location or expansion.

Small Business New Jobs Program

This program supports expanding or newly locating Virginia companies that have 250 employees or fewer company-wide. To qualify for assistance, a company must be:

  • Creating at least five net new full-time jobs within 12 months from the date of the first hire.
  • Making a new capital investment of at least $100,000 associated with the location or expansion.

Workforce Retraining Programs

When the overall annual VJIP budget allows, VJIP Retraining Programs support Virginia companies that need to upskill their existing workforce. Participating companies must demonstrate that they are undergoing integration of new technology into their production process, a change of product line in keeping with marketplace demands, or substantial change to their service delivery process that would require assimilation of new skills and technological capabilities by their existing labor force.

VJIP Retraining Programs can support the following industry sectors:

  • Manufacturing
  • Distribution Centers

Retraining Program

This program supports existing Virginia companies that have more than 250 employees company wide. To qualify for assistance, a company must be:

  • Considering another state or country for the capital investment
  • Retraining at least 25 full-time jobs directly associated with capital investment
  • Making a new capital investment of at least $1 million directly associated with the retraining efforts within a 12-month period

Small Business Retraining Program
This program supports existing Virginia companies that have 250 employees or fewer company wide. To qualify for assistance, a company must be:

  • Retraining at least five full-time jobs directly associated with the capital investment
  • Making a new capital investment of at least $100,000 directly associated with the retraining efforts within a 12-month period  

A company may access VJIP support for new job creation or retraining, but not both. A company must wait three years from the date of the VJIP Retraining reimbursement before it can access the program again. 

Process

  • A Business Manager meets with the company to gather and analyze information about the expansion or location project, understand the company’s recruitment and training needs, and determine eligibility. The Business Manager will work with the company to begin a VJIP application.
  • A Business Manager develops an estimated budget for the project, taking into consideration the cost of the project’s recruiting and training efforts, the project’s average wage compared to the locality’s prevailing average wage, the competitiveness of the project, the distress level of the locality, the amount of capital investment, other state incentive support, local support, and the project’s industry sector. Preliminary approval is then obtained from the Secretary of Commerce and Trade, and a proposal is developed, if needed, for the company’s consideration.
  • Once the company makes a decision for Virginia, a Business Manager works with the company to finalize a VJIP application. All projects are subject to final approval from the Secretary of Commerce and Trade.
  • Upon approval of the company’s application, VEDP sends the company a commitment letter confirming the amount to be paid to the company for each net new full-time employee hired or existing full-time employee retrained, according to the projections in the company's VJIP application.
  • If desired, a press release is issued and/or an announcement event is scheduled. Although it is not required that economic development projects receiving VJIP funding be publicly announced, the office of the Governor of Virginia appreciates the opportunity to share the good news of business growth in our communities and increase awareness in the community of the company’s presence.
  • For New Jobs projects, once the company reaches the minimum number of net new hires, the company submits a Reimbursement Request Form to its Business Manager. The Business Manager continues to work with the company to issue reimbursements until all projected net new hiring has been achieved or until the project performance period is complete, whichever happens first. Employment, wages, and capital investment commitments will be verified and monitored by VEDP for the duration of the project.
  • For Retraining projects, once the company completes the entire retraining activity, the company submits a Reimbursement Request Form to its Business Manager. VEDP will verify the project has met its capital investment and wage requirements before issuing payment.
  • The Business Manager will continue facilitating connections with the appropriate local, regional, and state resources for talent development needs during the company’s VJIP project cycle.

Resources

FAQ

What qualifies as capital investment?

“Capital investment” means an investment in real property, personal property, or both at a facility within the Commonwealth that is or may be capitalized by the company and that establishes or increases the productivity of the manufacturing facility, results in utilization of a more advanced technology than is in use immediately prior to such investment, or both.

How is a full-time employee defined?

"Full-time employee" means a person employed for indefinite duration in a position requiring a minimum of either (i) 35 hours of the employee's time per week for the entire normal year, which "normal year" shall consist of at least 48 weeks, or (ii) 1,680 hours per year. Seasonal or temporary employees shall not qualify as new full-time employees under the program.

How long is the project performance period?

Projects typically last a maximum of 36 months.

How is the three-year waiting period determined for companies wanting to access the Workforce Retraining Program for a second time?

Companies must wait to apply for the Workforce Retraining Program until 36 months after the date of their last reimbursement request from the previous Workforce Retraining Program project.

What is the minimum wage threshold for jobs to qualify for VJIP support?

The project’s average wage compared to the prevailing average wage of the locality, among
other criteria, is considered when determining the VJIP grant amount. Only full-time jobs
which pay a minimum entry-level wage rate per hour of at least 120% of the Federal
Minimum Wage or the Virginia Minimum Wage as defined in the Virginia Minimum Wage Act
§ 40.1-28.8 (see table below), whichever is higher, and qualifying for benefits are eligible for
funding.

Chart showing the minimum wage in Virginia and VJIP's minimum wage