The machine shop, which opened in 2000 and currently employs four workers, is planning to use the funds to purchase equipment and a new building in the town of Poe in Nicholas County.
The interest rate on the loan, made through the U.S. Economic Development Administration's Title IX loan program, is required to be fixed at closing based on the Wall Street Journal's published prime rate, minus 4 percentage points.
The loan program requires a 4 percent minimum loan rate and, since interest rates are historically low right now, the company's loan will likely end up being 4 percent at closing.
Also on Thursday, state Economic Development Authority Executive Director David Warner announced the agency's borrowing rate, set through the state Board of Treasury Investments, has slightly increased for the coming year.
The rate, which tracks close to the Federal Reserve's federal funds rate, will go up incrementally from 0.17 to 0.18 percent for the next fiscal year.
The low borrowing rate will translate into continued low interest rates on state development loans for the next year.
"With the interest rate climate as it is, we continue to have favorable borrowing terms for our biggest loan programs," Warner said.
The rate is adjusted annually, so even if the Fed raises rates over the next 12 months, the state authority will not see a rate change until the beginning of the next fiscal year.
Contact writer Jared Hunt at busin...@dailymail.com or 304-348-4836.