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State agency made 19 direct loans in 2011

The state agency that helps finance businesses made 19 direct, low-interest loans totaling $52 million during the financial year that ended June 30.

These and other activities are outlined in the West Virginia Economic Development Authority's just-released 2011 annual report.

Under the authority's direct-loan program, the agency loans up to 45 percent of the eligible cost of real property and equipment. Owner's equity and private sector lending make up the remaining 55 percent.

Companies receiving the loans have said they plan to use the money to help create 354 new jobs over the next three years. The direct loan program leveraged a total of $108 million, the authority said.

Three loans were made in this region:

  • Carbonxt Inc., a company based in Australia, received a $13 million loan in May to help it build a $29 million plant at Institute that will convert coal into an activated carbon product. The carbon product will be used to remove mercury from coal-fired power plant emissions.
  • The Cooke Co., doing business as C&M Courier Services, received a $1.7 million loan in November 2010 to help it acquire the former Great Lakes Truckland Inc. facility in Cross Lanes.
  • Kanawha Scales & Systems Inc. of Poca received an $800,000 loan in August 2010 to help the company expand its facilities at the Rock Branch Industrial Park near Poca.
  • The authority also has:

  • A program that insures a portion of commercial loans issued to businesses after the loans are conditionally approved by banks. Last year the authority insured $400,000 of a loan to Main Street Hinton Inc. of Summers County and $250,000 of a loan to M-Rock Inc. of Monroe County.
  • An industrial development bond program. Last year the authority issued $155.6 million in bonds for various counties and $65.4 million for a project at Appalachian Power Co.'s Amos Plant near Winfield.
  • As previously reported, the authority posted a $4.3 million profit last year, up from $1.7 million in the previous year.

    In September, David Warner, executive director, said the authority posted higher income primarily because the cost of funds decreased, there was an increase in interest and lease income, and there was a reduction in loan losses.

    Copies of the report are available by calling 304 558-3650 or writing the authority at NorthGate Business Park, 160 Association Drive, Charleston, WV 25311-1217. It is expected that the report will be posted on the authority's website soon. The website is at www.wveda.org.

    Contact writer George Hohmann at business@dailymail.com or 304-348-4836.


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