Direct Loans

About the 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 $15,000,000. 

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 related to real estate and buildings 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.  

WVEDA can participate up to 40% in eligible fixed assets related to affixed machinery and equipment utilized in qualifying projects and share a first lien on such assets with the participating lender, who also may participate up to 40%.  The borrower must inject a minimum of 20% equity into the qualifying costs of the project.  Rolling stock, such as trucks and forklifts, is not eligible.  

WVEDA can participate up to 35% in eligible special purpose equipment or customized equipment utilized in qualifying projects and share a first lien on such assets with the participating lender, who also may participate up to 35%.  The borrower must inject a minimum of 30% equity into the qualifying costs of the project.  

The ​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:

• A narrative description of your company’s history as well as a description of the proposed project and how it benefits your operation.
• 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).
• Company financial statements for the past four years (if applicable) as well as an interim company financial statement of the most recent month-end.
• 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.
• 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.