Direct Loan Program


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 Wall Street Journal Prime Interest rate times 75%. ?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 2% 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 and retention objectives.? The applicant may be an existing or prospective West Virginia business.
  • 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.
  • A personal guarantee of any owner with 20% or more of the subject business is required.? An Irrevocable Letter of Credit, with WVEDA as beneficiary, for the full amount of the WVEDA loan participation may be substituted for a personal guarantee.? If the business has no controlling stockholders, alternative surety structure is needed.

Applications are subject to review and approval based upon job creation,?retention and economic benefits to the State of West Virginia, as well as credit evaluation by WVEDA.

WVEDA issues a “take out” commitment to provide funding upon the completion of the project, which includes completion of all construction and receipt and installation of all project equipment, as outlined in the commitment letter.? Therefore, the applicant must submit evidence that interim financing is available in the event of WVEDA loan approval.

The following information must be submitted to the WVEDA to determine if the project is eligible and the extent to which we may participate:

  1. A narrative description?of?your companies?history as well as a description of the?proposed project and how it benefits your operation.
  2. A breakdown of project costs including?land acquisition (excluding existing improvements); building acquisition?or other improvements; site preparation, utilities, roads, etc.; construction; renovation; and?machinery and/or equipment?(excluding rolling stock).
  3. Company financial statements for the past four year-ends?(if applicable) as well as?an interim company financial statement of the?most recent month-end.
  4. Employment information including?the current number of full time equivalent employees, their salary or?wage range and benefit package; number of new full time equivalent employees anticipated as a result of the proposed project, their salary or?wage range and benefit package; and an explanation?if the proposed project is for job retention.
  5. Other information you consider relevant to the project.

After favorable review of your company’s pre-application information, WVEDA will forward a formal Application For Financial Assistance (Application).?WVEDA’s Board of Directors meet on the third Thursday of each month.? In order for an Application to be placed on the Agenda for that Board meeting, WVEDA must be in receipt of the completed Application no later than the first business day of the month.?Upon receipt of the completed Application, WVEDA will review compliance in regard to payments of State Corporate Taxes, Workers’ Compensation Taxes and Employment Security Taxes.?WVEDA may also contact and review the project with the local development authority, which is required to sign the Application.?The borrower will be notified of the Board of Directors decision as soon as possible after the monthly meeting.? If a favorable decision is granted, a commitment letter will be forwarded to the borrower for review and signature.?Upon reviewing and signing the commitment letter, the borrower must forward it back to WVEDA for final approval by the Board of Directors at its next regular monthly meeting.?For additional information, please contact a Loan Officer.? Click here for the WVEDA Directory.