Literary Fund Loans

The Literary Fund is a permanent and perpetual school fund established in the Constitution of Virginia and the Code of Virginia. Revenues to the Literary Fund are derived primarily from criminal fines, fees, and forfeitures, unclaimed and escheated property, unclaimed lottery winnings and repayments of prior Literary Fund loans. The Literary Fund provides low-interest loans for school construction, grants under the interest rate subsidy program, debt service for VPSA technology and school security equipment grants funding, and support for the state’s share of teacher retirement required by the Standards of Quality.

Questions related to Literary Fund loans can be emailed to doeliteraryfund@doe.virginia.gov.

Current Status

The 2022 Special I General Assembly authorized $200.0 million in FY 2023 and $200.0 million in FY 2024 from the Literary Fund for construction loans in the Chapter 2 budget.  Loan approvals, not to exceed $25.0 million per project, will be prioritized by the Board of Education on the basis of the composite index of ability-to-pay.  Loan applications may seek an add-on of up to $5.0 million if the project will result in school consolidation and the net reduction of at least one existing school.  Interest rates on loans will be benchmarked to a market index and communicated to school divisions upon the opening of the open application window.  The interest rate shall not exceed 2.0 percent for school divisions with a composite index value below 0.3000.

Pursuant to the appropriation act and Board of Education guidelines, the Virginia Department of Education (VDOE) will conduct an annual open application process to receive loan applications.  Loan applications must meet the deadlines established by VDOE for consideration by the Board of Education. 

The FY 2024 open application process opened on March 21, 2024, and closed on May 23, 2024.  The maximum interest rate charged on loans in this open application process is 3.35 percent.  Details related to the open application process can be found in the March 21, 2024, edition of the VDOE Education Update Newsletter.

Pursuant to 8VAC20-100-60 of the Virginia Administrative Code, the Board of Education will not approve a Literary Fund loan if the project has already been publicly bid prior to receipt of the application by VDOE.

Waiting Lists

The waiting list process for Literary Fund loan applications is suspended as of July 1, 2022, per Chapter 2, 2022 Virginia Acts of Assembly.  The waiting lists as of June 30, 2022, are listed below.

• Active Projects List (XLS) – (last approval October 17, 2019)
• First Priority Waiting List (XLS) – (Latest approved list by the Board of Education – November 2021)
• Second Priority Waiting List (XLS) – (Latest approved list by the Board of Education – November 2021)
• Approved Application List (XLS) – (Latest approved list by the Board of Education – no changes since July 2020)

Literary Fund Application

• Application for Loan from the Literary Fund of Virginia (XLS)
• Instructions for Downloading (PDF)
• Application package includes:
  • Application Checklist (PDF)
  • Requisition for Advance from Literary Fund (XLS)
    Instructions for Downloading (PDF)
    (Please note that as of July 1, 2007, the old Requisition for Advance from Literary Fund form will no longer be accepted. You must use this Excel template.)
  • Sample Reimbursement Resolution (PDF)

Legislation & Regulations

• Chapter 121, 2007 Acts of Assembly – Code changes relating to the Literary Fund
• Chapter 365, 2008 Acts of Assembly – Release of liens held on behalf of Literary Fund prior to July 1, 2007. 
• Virginia Department of Education Regulations Governing Literary Fund Loans in Virginia and Non-Regulatory Supplemental Guidance for Literary Fund Regulations (PDF)

Literary Fund Process Flowchart

• Literary Fund Process Flowchart (Word)

Qualifying Uses of Literary Fund Loans

• Qualifying Uses of Literary Fund Loans (Word)

Interest Rate Subsidy Program

• Department Requirements for Interest Rate Subsidy Grant (PDF)
• Interest Rate Subsidy Requisition Form (XLS)
• Instructions for Downloading (PDF)

School Construction Options in Virginia

• General Obligation Bonds of the Localities (PDF)
• Direct Literary Fund Loans (PDF)
• Virginia Public School Authority (VPSA)
• Funding Options for School Construction in Virginia (PDF) – January 2008 presentation from the Virginia Public School Authority