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Smyth County approves clawback and repayment plan after Smyth Machine missed grant metrics
Summary
Smyth County approved an updated 2026 TROF agreement requiring Smyth Machine to repay a $53,000 Tobacco Commission grant in scheduled installments; the county will refund the Tobacco Commission and pursue repayment from the company, county staff said.
The Smyth County Board of Supervisors on Feb. 12 approved an updated 2026 Tobacco Region Opportunity Fund (TROF) agreement that adds clawback procedures and requires Smyth Machine to repay $53,000 to the county so the county can refund the Tobacco Commission.
Kendra Hayden, Smyth County's director of community and economic development, told the board that Smyth Machine had received upfront grant funding for an expansion but failed to meet performance metrics, prompting the Tobacco Commission to request repayment. Hayden said the county would refund the Tobacco Commission and then "promptly follow suit to seek repayment of the funds from Smyth Machine," and that the company has been participating in conversations about the request.
Saltville District Supervisor Roscoe Call moved to approve the updated agreement and authorize the county administrator to execute it; Royal Oak District Supervisor Courtney Widener seconded the motion and the board voted unanimously to approve.
County Administrator Shawn Utt told the board that the Tobacco Commission no longer issues similar upfront grants, which he said reduces the likelihood of comparable recoupment issues in future projects. North Fork District Supervisor Rick Billings asked how the county would proceed if Smyth Machine failed to repay; Hayden's explanation emphasized the county's plan to pursue reimbursement after refunding the Commission.
The agreement approved on Feb. 12 requires Smyth Machine to make repayment in three amounts to Smyth County; the county will, in turn, repay the Tobacco Commission. The board did not specify additional enforcement details in the public record during the meeting.
