ANNOUNCEMENT FROM THE WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY
In the regular session of the 2022 West Virginia legislature, with the ardent support of Governor
Jim Justice, an historic economic development opportunity was created to provide new and
existing businesses throughout our state with financial support. The legislation provides $600
million to the West Virginia Economic Development Authority (“WVEDA”) in loan funding for
creditworthy manufacturing concerns, industrial processing operations, distribution centers,
technology-based service companies, and other business classifications currently targeted by
the West Virginia Department of Economic Development meeting certain job creation criteria.
The applicant may be an existing or prospective West Virginia business.
Qualifying characteristics of the WVEDA’s financing programs are presented below:
● Loan minimum amount of $50,000, and maximum amount of $15,000,000.
● Loan amount limited to a maximum of $75,000 for each job created or retained.
● A maximum of 45% of qualifying costs for real estate-related use, or 40% for equipment-
related use (35% for customized or special purpose equipment) can be loaned by the
WVEDA.
● The loan applicant must provide an equity injection of 10% for real estate-related
funding, or 20% for equipment-related funding (30% for customized or special purpose
equipment).
● Eligible fixed assets include the purchase of land, site preparation, building acquisition,
construction or renovation, or machinery and equipment acquisition. Rolling stock is not
eligible for WVEDA financing.
● The WVEDA provides permanent financing only, not project/construction period
financing, through the issuance of a “take out” commitment. The loan applicant must
submit evidence that the interim financing for the entire project/construction project is in
place prior to submitting its application to the WVEDA for permanent financing.
● The WVEDA must hold a sole first, or pro rata shared first, lien position in the project
assets.
● The personal guarantee of all owners with a 20% ownership interest in the applicant
business is required. If no owner holds at least a 20% ownership, a grouping of owners
comprising at least 20% ownership may be considered. Otherwise, an Irrevocable Letter
of Credit for no less than the outstanding principal balance of the loan must be
maintained payable to the WVEDA for the entire outstanding balance period.
● Loans made by the WVEDA have a fixed interest rate.
If you are interested in applying for loan financing from the West Virginia Economic
Development Authority, or have any questions regarding the WVEDA loan programs, please call
304-558-3651 and ask to speak with one of our loan officers.
Sincerely,
