Smith + Howard Advisory, LLC

Smith + Howard’s Site Selection + Incentives (SSI) Team helps businesses make informed, data-driven decisions while securing valuable incentives that reduce costs and support operational efficiency and growth.

EMAIL | Shelly Carmichael, Director – Specialty Tax Services

Strengths Defined. Strategies Aligned.

The Playbook is Hampton Roads' game plan to build on the industries that define us and strengthen the cross-cutting drivers that drive long-term growth. With this Playbook, Hampton Roads is on offense -- designing our own projects to improve the economy rather than waiting for opportunities to arrive.

Hampton Roads will compete and win in the new economic order by focusing on Defense, Energy, Aerospace, and Logistics (DEAL) and advancing transformative projects that grow our workforce, strengthen infrastructure, and secure long-term investment.

8 TRANSFORMATIVE PROJECTS READYING THE REGION...

Navigating the 2026 General Assembly: New Opportunities for the Hampton Roads Maritime Sector

The incoming 2026 General Assembly Session, opening under Governor-elect Abigail Spanberger and a newly established Democratic trifecta, presents a pivotal moment for Virginia's policy landscape and significant, targeted opportunities for the Hampton Roads business community.

As a 60-day budget session, this General Assembly will not only formalize the new administration’s core agenda, centered on affordability, a stable business environment, and clean energy, but also finalize the biennial budget, which will serve as the primary mechanism for regional strategic investment.

The Governor-elect's public statements, particularly to the Hampton Roads Chamber of Commerce, stress a commitment to stability, advanced manufacturing, and defense innovation, providing a clear path for regional priorities to align with her statewide vision.

A Critical Note on the Tidewater Balance of Power

The legislative power center for the Tidewater region has never been stronger, a crucial dynamic for leveraging state investment. Senate leadership, particularly President Pro Tempore L. Louise Lucas (D-Portsmouth) and Senator Mamie Locke (D-Hampton), and the new House leadership under Speaker Don Scott (D-Portsmouth) ensure the region's concerns are primary in budget negotiations.

Furthermore, with key players like Senator Aaron Rouse (D-Virginia Beach) maintaining a crucial swing vote and representing the Commonwealth’s largest city, the Hampton Roads delegation possesses the necessary influence to command significant capital allocation for regional priorities. This consolidated political power is the engine behind the aggressive push for resilience funding and the implementation of the Hampton Roads Playbook.

Where Change Meets Opportunity

We see three high-value areas, directly tied to the new administration’s priorities, where our firm's expertise in regulatory affairs, land use, and commercial transactions can immediately serve clients in the maritime, defense, and energy sectors.

I. Economic Security & Affordability

Governor Spanberger and the Democratic majority may advance legislation establishing a statewide paid sick leave program and increasing the minimum wage. These legislative actions create immediate compliance needs for large employers.

• Guiding maritime and advanced manufacturing clients through the implementation and compliance of new statewide labor mandates. Furthermore, as the state boosts funding for Career and Technical Education (CTE) and apprenticeship programs, we can structure private-public partnerships to leverage these new state dollars for maritime workforce apprenticeships and credentialing programs.

II. Clean Energy & Regulatory Policy

The Governor-elect has signaled the Commonwealth may rejoin the Regional Greenhouse Gas Initiative (RGGI) and will push for policies aimed at greater energy efficiency for large industrial and commercial consumers. These changes will impact utility infrastructure and costs across the region.

• Assisting clients in the energy sector with the regulatory and contractual implications of RGGI re-entry and new clean energy mandates. For industrial clients, particularly those supporting the Secure Energy Future Center, we can counsel on large-scale renewable energy procurement and site acquisition to meet emerging energy efficiency or clean power mandates.

III. Regional Investment & Resilience

The General Assembly's top budget priority for the region is aggressively increasing appropriations for the Community Flood Preparedness Fund (CFPF) and establishing a dedicated Flood Mitigation Local Nonfederal Match Fund.

• Representing clients involved in crucial defense-critical infrastructure projects like the Elizabeth River Eastern Branch Dredging and other major resilience efforts. Our role could be essential in securing necessary state-owned bottomland easements and providing land use and regulatory counsel to streamline state and local permitting for major flood mitigation projects, ensuring they move swiftly to construction and de-risking the process for our developer and industrial clients.

Advocacy for the Tidewater Region: The Funding Imperative

The unified request from the Hampton Roads localities for substantial state funding, specifically a $200 million funding increase for the CFPF and the creation of a $50 million Local Nonfederal Match Fund, is a signal that Hampton Roads desires a large, strategic investment in the region.

However, the fiscal challenges that the Governor-elect will face, including a $3.2 Billion Medicaid shortfall, may force the Appropriators prioritize growth-centric projects beyond required spending on school re-benchmarking. 

The Hampton Roads Playbook: A Roadmap for Strategic Partnership

The Playbook's 8 Transformative Projects provide the perfect, vetted framework for directing the state resources secured during this session, offering a clear path to align with the Governor-elect's goals:



• The focus on the defense industrial base (AUKUS Center of Excellence, Defense Efficiency & Production Center) aligns perfectly with Governor Spanberger's emphasis on national security and advanced manufacturing. These centers of excellence offer tangible ways to deploy state funds into R&D and supply-chain resilience, creating an immediate value proposition for state investment.
• Projects like NEXUS: National Excellence in Uncrewed Systems and the 757 Collab Defense Technology Accelerator capitalize on the Governor-elect's desire to grow the technology and defense sectors, creating a demand for venture capital and corporate structuring expertise to help these early-stage companies scale using state and federal resources.

Carter T. Whitelow

Carter has led successful government relations efforts, high-stakes advocacy, and strategic counsel across the Mid-Atlantic. Recognized for his exceptional proficiency in procurement and his ability to secure landmark agreements, Carter’s practice is dedicated to helping clients navigate complex regulatory environments, secure major government contracts, and achieve crucial legislative goals. His approach is rooted in synthesizing deep policy knowledge with a results-driven business perspective—a skill honed across Virginia’s most critical sectors.

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ALERT | SBA Expands Fraud Scrutiny: What 8(a) Contractors Must Produce by Jan. 5

The Small Business Administration recently sent a request for documents via e-mail to all 4,300 Section 8a contractors. If you are an 8a contractor and you did not receive that request, you must check your spam and junk mail filters. It is mandatory that all 8a contractors respond to this request for documents by January 5. Failure to respond can lead to potential suspension, debarment or removal from the 8a program. This is not a routine request for documents. It is the beginning of a comprehensive audit of the 8a program to locate and stop waste, fraud and abuse. In recent months, SBA has exposed multiple examples of fraud by certain 8a contractors. This document request is a continuation of those efforts.

SBA is unlikely to grant an extension to respond in all but the most compelling cases. If you are an 8a contractor and need such an extension, you should contact your counsel and start that process now.

The request identifies 13 classes of documents that must be produced. Those classes are listed below. It also identifies the file formats in which those documents must be produced. If the documents are not produced in the format that is requested, the SBA might view that as a non-responsive request.

Financial Data (CSV Files Only):

• General Ledger
• Trial Balance
• Financial Statements
• Financial Statement Reconciliation to the year-end Trial Balance.
• Sub-Ledger Schedules tying to year-end trial balance

Operational & Tax Data (PDF Files Only):

• IRS Form 4506.
• Bank Statements.
• Bank Reconciliations.
• Payroll Register and Reconciliation.
• List of All Employees
• List of All Vendors and Joint Ventures.
• Copies of all 8(a) Contracts currently being worked on.
• Subcontracting Agreements related to the 8(a) contracts listed above.

This is a request for an enormous number of records in a very short period of time. 8a contractors should start working on this immediately. They should coordinate those efforts with accounting and legal assistance.

Kevin J. Cosgrove

Kevin’s practice focuses on construction litigation, government contracts, and maritime matters. A former city attorney, he also provides advice and litigates local government disputes. Kevin’s commitment to a thriving regional economy shows in his leadership. He served as Regional Director of the Hampton Roads Chamber and as past president of the Chesapeake and Virginia Beach chambers. For the past 8 years he has served on the Chesapeake Economic Development Authority. He was elected to be Chairman of the Authority in 2024-25. He is also Chairman of the Contracts Committee for the Virginia Ship Repair Association. 

Contact Kevin