The Preservation Alliance of West Virginia is launching a new funding initiative, the Historic Preservation Loan Fund, where it will partner with local and regional lending agencies to guarantee up to 20 percent of loans for historic preservation projects. The Historic Loan Fund will target West Virginia Endangered Properties and commercial structures that are listed in the National Register of Historic Places. The alliance is partnering with Woodlands Community Lenders, Natural Capital Investment Fund, and the New River Gorge Regional Development Authority to pilot the fund and leverage more resources for larger revitalization projects in Barbour, Fayette, Nicholas, Raleigh, Randolph, Summers and Tucker counties.
The Historic Preservation Loan Fund is a revolving loan guaranty program whereby the alliance will promise, or guarantee, its loan funds in case a borrower defaults. This will in turn minimize risk for lending financial institutions and assist candidates that may not have the capital for a regular bank loan. “Made possible with a grant from the 1772 Foundation, the Historic Preservation Loan Fund focuses primarily on construction costs, but borrowers may also apply for acquisition and predevelopment costs, as well as grant funding match,” explained Danielle LaPresta, Executive Director for the alliance. “We are hoping to assist small borrowers like nonprofit organizations and local residents who lack access to the credit resources available to large borrowers, but feel passionately about saving and re-purposing a historic building.” According to LaPresta, these projects are also eligible for a 45 percent historic rehabilitation tax credit and state-issued Development Grants, among other grant funding. Applicants for the Historic Preservation Loan Fund will also receive technical assistance from the alliance, and nonprofit organizations may be eligible for Preserve WV AmeriCorps support.
While several preservation organizations have had success with similar loan programs in states across the United States, this will be the first revolving fund of its kind in West Virginia. With sustainability in mind, the alliance developed the program so that when borrowers pay back loans to local lending partners, the alliance’s funds will be opened up for new applicants. This allows the alliance to stretch the $25,000 grant it received from the 1772 Foundation in February to assist more projects across the state. “We are very grateful to the 1772 Foundation for supporting the development of this loan guaranty program for the last three years, and we are working hard to grow these seed funds,” said LaPresta. The alliance continues to raise funds for the Historic Preservation Loan Fund. “Every dollar we raise will go directly to guarantee loans,“ explained LaPresta. Interested individuals can contribute to this new financial resource at http://www.pawv.org.
Anyone interested in applying for loans using the Historic Preservation Loan Fund should contact Danielle LaPresta at firstname.lastname@example.org or by calling 304-345-6005.
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