The 2023 Equipment Financing Program supports business retention efforts statewide

At the core of the West Virginia Economic Development Authority’s (WVEDA) mission lies a profound commitment to bolstering the state’s economy. The 2023 Equipment Financing Program is a pivotal instrument in achieving this goal. By providing businesses with access to essential tools and machinery, the program facilitates productivity and efficiency enhancements, empowering entrepreneurs to expand their operations and remain competitive in today’s fast-paced market.

The 2023 Equipment Financing Program allows the WVEDA to provide existing small businesses within the state with funds for business development and expansion to industrial development agencies. The new loan program was created following the passage of Senate Bill 523 on March 10, 2023. The details of the program are:

The initial funding amount designated for this program is $25 million.

Maximum loan amount of $2 million to any singular or affiliated borrowing entity; minimum loan amount of $50,000.

Maximum loan amortization term of 10 years, not to exceed estimated useful life, monthly payments of principal and interest required.

Borrowing purpose is limited to the acquisition of new or used equipment or for upgrading or refurbishing existing equipment. Rolling stock is prohibited.

Minimum equity injection of 10% of value.

Fixed interest rate of 3% for borrowing of < 80% of value (LTV < 80%).

Fixed interest rate of 4% for borrowing of 80+% to 90% of value (LTV 80+% < 90%).

Business borrowers must be established and based in WV and have been in operation for no less than one year.

The WVEDA must hold a sole first lien UCC-1 collateral position on the subject equipment collateral. Other financing is allowed with a junior lien position.

The personal guaranty (guaranties) of all owner(s) of a 20% or greater percentage of the business are required.

WV Great Barrel Company, LLC, Appalachian Stave West Virginia LLC, Mister B Snacks, LLC, W. A. Wilson and Sons, Inc., Medley Fork Properties, LLC, Skana Aluminum Company and so many more companies have elected to say #YesWV.

There’s a small business revolution happening within West Virginia. All over the state, entrepreneurs are serving both their local communities and people worldwide. And there’s an ecosystem of entrepreneurial activity that is growing daily.

One of the significant hurdles for businesses, especially small and medium-sized enterprises, is the financial barrier that often impedes progress. Through this program, the West Virginia Economic Development Authority dismantles these obstacles. By offering favorable financing options, businesses can acquire state-of-the-art equipment without being burdened by excessive costs. This not only encourages business retention but also stimulates economic growth by fostering a favorable environment for entrepreneurship.

Let’s face it: sometimes, traditional sources of capital fail deserving West Virginia businesses. Sometimes, there are not the necessary institutions for business lending, or those institutions are not right to solve particular business problems.

The opportunity we have now is to invest in West Virginia. Small business owners are the backbone of our communities. If we invest in them, all of West Virginia will see the gains.

As West Virginia strides confidently into the future, the 2023 Equipment Financing Program stands as a testament to the state’s dedication to its businesses. By nurturing entrepreneurship, breaking financial barriers and encouraging innovation, the program supports business retention and paves the way for a vibrant and prosperous economic landscape.

West Virginia businesses can use this program by contacting the West Virginia Economic Development Authority at (304) 558-3651.