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Business
Development
Loan
Program
Purpose:
The purpose of the Central Appalachia Empowerment Zone (CAEZ) Program is provide "gap" financing for new and expanding businesses within its region. Applicants are expected to seek some financing from an outside lender, and then CAEZ will assist with the remaining cost of the business venture.
The Loan Program will make every effort to work with businesses which will provide jobs for residents in the CAEZ.
Eligibility:
Eligible projects include new or expanding industrial and commerical business ventures.
Businesses outside of CAEZ boundaries, speculative buildings, loans to retire debt and rolling stock are not eligible for financing under this program.
Eligible costs include land acquisitions, building acquisitions, rehabilitation and construction, machinery and equipment, infrastructure, operating expenses and inventory.
Terms and conditions are as follows:
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Cannot exceed 50 percent of total costs
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Maximum loan amount is $200,000
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Minimum loan amount is $2,000
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Max. Ratio of $15,000 loaned per job created
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Interest rate is currently 5%
Application Process
Applicants should first develop a business plan. CAEZ will provide the names of organizations who can provide assistance in developing our business plan.
The applicant will have a preliminary meeting with CAEZ Economic Development committee to determine the project's eligibility and will need the following information:
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Business plan
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Economic impact statement, including number and type of jobs and average salary
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Commitment letter from an outside lender
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Three-year historical data, if applicable
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Any other items requested by the CAEZ
The Economic Development committee will recommend a formal application process in conjunction with the outside lender. The application form can be the same one used by the participating lender.
Generally, the application must be approved by the banks for credit worthinesss; the Sate of West Virginia for compliance with all state laws and regulations; and the CAEZ Board of Directors.
Responsibilities
The acceptance of the loan legally requires the recipient to create the number of jobs indicated in their application. In addition, the borrower must regularly submit job creation reports, financial condition, and conduct environmental reviews.
Non-Discrimination
The CAEZ does not discriminate on the basis of race, creed, religion, sex or national origin.
More Information