Rural Rehabilitation Loan Fund - West Virginia

The West Virginia Rural Rehabilitation Loan Fund (WVRRLF), administered by the West Virginia Department of Agriculture, is a low-interest loan program designed to assist emerging agribusinesses and to help existing agribusinesses, farm operations, livestock operations, or any other ag-related endeavors approved by the Commissioner with expansion plans. Loans are available for a variety of agricultural purposes. Examples of WV agribusinesses the fund has assisted include a manufacturer of baking mixes (commercial equipment purchase), a hydroponic operation (greenhouses and equipment), a slaughter operation (property purchase), multiple family farms (property, equipment, and buildings), a pet treat manufacturer (equipment), and a hemp farm (equipment and buildings).

Eligible borrowers include emerging agribusinesses and existing agribusinesses, farm operations, livestock operations, or any other ag-related endeavors approved by the Commissioner that have expansion plans. The staff in the WVDA Ag Business Department is available to assist applicants with the business plan.

Maximum loan: "The maximum amount which can be loaned to any one borrower (individual/corporation/partnership) is $250,000, except in extraordinary agricultural development opportunities. The Commissioner must rule on the merits of such requests." No minimum loan size is published.

Interest rate: "Interest rates are set using the Wall Street Journal prime rate as a guide. Interest rates shall be fixed for the term of the loan." WVDA does not publish a fixed spread or a current rate — you are given the terms after the WVRRLF Committee reviews your application.

Term: "Loans should be of no more than 20 years in duration." The application asks for your "Requested Repayment Terms (not to exceed 20 years)" and lets you propose the repayment schedule (monthly, quarterly, etc.).

Collateral and guarantees: "All loans shall be secured by sufficient collateral." Loans to partnerships must be personally guaranteed by each partner, with the remaining partners becoming wholly responsible if one cannot meet their obligations; loans to corporations must be guaranteed personally by each member of the Board of Directors. Loans may also require letters of credit, credit insurance, or other collateral as approved by the WVRRLF Committee.

Fees: there is no published application fee, but "[l]oan applicants will be responsible for paying any fees associated with processing the loan, such as, but not limited to, recording fees, title reports, surveys, appraisals and credit checks."

Eligible uses: "real estate, livestock, machinery, equipment, supplies or materials necessary for the business, and special purpose structures required for the production or processing of agricultural commodities and products, or for the development of cottage industries."

Terms are per the WVRRLF Policy Statement signed by the Commissioner (dated 11/13/18) and carried in the current application packet; the Trustee reserves the right to change them at his discretion.

To apply, complete the Rural Rehab Loan Fund Application and submit it with a business plan and a cover letter explaining the loan request and collateral. Applicants should email completed PDF applications to Susan Baxter, Loan Program Coordinator, at sbaxter@wvda.us. To have an application sent by mail or for questions about the loan program, contact Susan Baxter at (304) 558-2221 or sbaxter@wvda.us.