At their September 15 meeting, the West Virginia Economic Development Authority announced a reduction in fixed interest rates on loans for new equipment purchases from the current 4 percent to 2 percent. WVEDA is initially targeting $10 million for the incentive.

Executive Director David Warner said it is the first interest rate reduction in about 10 years. He said the timing is right, considering current economic conditions, a prime rate at 3.25 percent and the Federal Reserve’s plans to hold interest rates steady for the next 1-2 years.

"We’re going to see if it has a positive impact on anyone at least on a short-term basis and see how it is received,” Warner said. “We’re going to try to generate a little more activity."

The WVEDA partners with banks for the loans by offering financing on 45 percent of eligible equipment purchases up to a maximum amount of $800,000. Participating companies are expected to contribute 10 percent of the cost of new equipment.

Companies interested in acquiring some of the reduced-rate equipment loan funds can contact WVEDA for more information at 304-558-3650 or visit their website at www.wveda.org.