Business Financing

DEVELOPMENT ASSISTANCE PROGRAMS
WEST VIRGINIA

West Virginia provides access to:

• A business-friendly climate and a skilled work force
• Low business operating costs, 12.9 percent below the U.S. average
• Low utility costs
• A strategic location with overnight delivery to more than half the United States population and more than one-third of the Canadian market
• Low-cost of living for employees
• High quality of life and unparalleled outdoor recreational activities

FINANCIAL ASSISTANCE

Direct Loan Programs

The West Virginia Economic Development authority can provide up to 45 percent in financing fixed assets by providing low-interest, direct loans to expanding state businesses and firms locating in West Virginia. Loan term is generally 15 years for real estate intensive projects and five to 10 years for equipment projects. Loan proceeds may be used for the acquisition of land, buildings and equipment. Working capital loans and the refinancing of existing debt are not eligible.

Indirect Loans

The West Virginia Economic Development Authority can provide up to 45 percent in financing fixed assets by providing low-interest, direct loans to expanding state businesses and firms locating in West Virginia. Loan term is generally 15 years for real estate intensive projects and five to 10 years for equipment projects. Loan proceeds may be used for the acquisition of land, buildings, and equipment. Working capital loans and the refinancing of existing debt are not eligible.

Indirect Loans

The West Virginia Economic Development authority provides a loan insurance program through participating commercial banks to assist firms that cannot obtain conventional bank financing. This program insures up to 80 percent of a bank loan for a maximum loan term of four years. Loan proceeds may be used for any business purpose except the refinancing of existing debt.

West Virginia Infrastructure and Jobs Development Council

The fund can be used for financial assistance to public utilities, county development authorities and private companies for infrastructure improvements to support economic development projects.

Linked Deposit Loan Program

The program allows small, for-profit state employers with fifty or fewer employees and gross annual receipts of $5 million or less to apply for a linked deposit loan with an interest rate of one percent above published New York Prime, up to $250,000.

BUSINESS ASSISTANCE

Corporate Headquarters Credit

Companies that relocate their corporate headquarters to West Virginia are eligible for state tax credits.

Economic Opportunity Credit

For qualified companies that create at least 20 new jobs (ten jobs in the case of qualified small business) as a result of their business expansion project, The State’s Economic Opportunity Tax Credit can offset up to 80 percent of specified business taxes for a period of up to 13 years. If a qualified company that creates the requisite number of jobs pays an annual median wage higher than the statewide average non-farm payroll wage, then the qualified company can offset up to 100 percent of the specified taxes for up to 13 years.

For eligible businesses creating less than ten new jobs per year, a $3,000 credit is allowed per new job for five years, providing the new job pays at least $32,000 per year and the employee has employer-provided health insurance benefits.

“Five-for-Ten” Program

The program provides tax assistance to businesses that make qualified capital improvements of at least $50 million to an existing base of $100 million or more.  It assesses the new capital addition at a salvage value of five percent for the first ten years.

Manufacturing Investment Credit

Allows a 50 percent corporate net income tax credit and franchise tax credit based on investment with no new job creation required. Beginning in 2009, the credit may offset up to 60% of Severance, Business Franchise and Corporation Net Income tax liabilities.

Manufacturing Sales Tax Exemption

Materials and equipment purchased for direct use in manufacturing are exempt from the six percent state sales and use tax, including business materials purchased for manufacturing construction projects.

Tourism Development Incentive

A company that invests in and operates a new or expanding tourism destination project may be eligible to retain some of the consumers’ sales and services tax that it collects from its customers over a 10-year period on sales from operation of the tourism attraction or facility.

The Tourism Matching Advertising Partnership Program

In order to extend advertising resources for the promotion of tourism through partnerships, this program provides reimbursable matching funds for direct advertising.  Business applicants and their partners must provide a minimum of 50 percent of the total cost for programs at the $10,000 + level.  For programs not exceeding $7,500, business applicants must provide 25 percent of the total cost.

Workforce Development Programs

West Virginia is known for its loyal, dedicated, and productive work force. Realizing the critical importance of a highly skilled, technically proficient work force, the West Virginia Development Office and its partners, WORKFORCE West Virginia and the state’s extensive vocational and community technical college system are committed in providing the best turnkey solution to meet the needs of businesses for new and existing workers.

Our work force team is equipped to deploy effective strategies to recruit, screen, test and train applicants by coordinating and leveraging all available state and federal training resources, designing the best possible solution for your business. We guarantee that we will match the skills of West Virginia’s committed, available work force with existing jobs and the jobs of the future. This may be done through various programs including but are not limited to:

• WorkKeys Career Readiness Certificates

The national-recognized WorkKeys Career Readiness Certificates are part of anew initiative from WORKFORCE                West Virginia. This initiative will aid in the process of matching qualified job seekers with jobs while assuring                    businesses that the state of West Virginia has a ready and skilled work force.

• Governor’s Guaranteed Work Force Program

West Virginia’s key customized training program. This flexible program offers customized training assistance to eligible companies by providing funding that directly supports the transfer of knowledge and skills.  Companies must create a minimum of ten net new jobs within a twelve month period..

• The Workforce Investment Act (WIA) Program

This customized training program is available to employers that hire individuals that meet specific program requirements. This program targets job seekers that are either economically disadvantaged or displaced due to job shifting in the region.

• Small Business Work Force Program

This program offers customized job training awards to small businesses (51 or fewer employees) that show a need for work force training to support a competitive improvement activity.

• West Virginia Advance Program

This flexible program offers customized job training awards to new and existing businesses. The program offers development and delivery of training services that will support a company’s startup and ongoing employee development initiatives through a local Community and Technical College.

• The Workforce Development Initiative Program

This program encourages working partnerships between area community and technical colleges and the business community. The program requires a one-to-one match from the private sector.