The money will go to the Route 340 North Economic Development Project in Page County, including the KVK expansion.
The area has been hit hard recently by factory closings and workers being laid off.
The KVK expansion will create up to 150 new jobs.
"Of these 150 jobs, at least 50-percent have to be of the hirings, low to moderate income," said Bill Aleshire of Page County. "That alone will see that a lot of people who are unemployed in the county have a chance at these jobs."
Aleshire says he hopes the KVK expansion will encourage other businesses to come to the area.
Jeff Vaughn of KVK says he's excited about the grant and it puts them one step closer to getting more jobs into the Valley.