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:
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.
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.