Direct Loan Program – West Virginia Economic Development Authority

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Areas Served: Statewide West Virginia

The Direct Loan Program is for applicants seeking a loan from the WVEDA in the minimum amount of $50,000 and a maximum amount of $10,000,000. The WVEDA has a two tiered pricing system.

For loans of $50,000 to $800,000, the interest rate is the New York Prime rate minus 4%.

Loans above $800,000 are priced at a rate equal to the U.S. Treasury Note rate of equivalent maturity (as quoted daily in the Treasury Bonds, Notes and Bills Section of the Wall Street Journal) plus three-quarters percent.

In both instances, the loans are fixed at closing and the interest rate has a floor of 4% and no ceiling.

Additionally, the two tiers cannot be used in conjunction with each other.

The following criteria are relative to both tiers of the Direct Lending Program: Financial assistance is available to participate in the financing of fixed assets for creditworthy manufacturing concerns, distribution centers, technology-based service companies and other business classifications currently targeted by the West Virginia Development Office meeting WVEDA’s job creation criteria.

The applicant may be an existing or prospective West Virginia business.

Job creation and retention are important factors under the WVEDA lending guidelines.

The borrower must create or retain one job for every $15,000 of WVEDA participation.

WVEDA can participate up to 45% in eligible fixed assets of qualifying projects and share a first lien on such assets with the participating lender, who also may participate up to 45%.

The borrower must inject at least 10% equity into the project.

Eligible fixed assets include the purchase of land, site preparation, building acquisition, construction or renovation, machinery and equipment.

Rolling stock, such as trucks and forklifts, is not eligible.

In addition, WVEDA does not finance working capital or inventory under these programs and does not refinance existing debt.

The loan term is generally 15 years for real estate intensive projects and 5 to 10 years for equipment projects.

 

Contact Information
West Virginia Economic Development Authority
Address: 160 Association Drive
City: Charleston
State: West Virginia

Website: http://www.wveda.org

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