Non-traditional Lenders Playing Key Role in Success of Tygart Hotel Rehab

A key partner in the Tygart Hotel project, Partner Community Capital, recently sent a team from their Charles Town, WV to take stock of the progress being made in the rehabilitation of the historic Tygart Hotel. The $16M project is currently under construction and expected to be completed in fall 2023.

While three local banks, Davis Trust, Freedom Bank, and Pendleton Community Bank stepped up to invest in the Tygart Hotel, a portion of the funding needed to come from non-traditional lending sources. Community Development Financial Institutions or CDFIs like Partner Community Capital are designed to take on slightly riskier investments in development projects like this.

“Finding investors is often the hardest part of leveraging the New Markets Tax Credits,” explained Woodlands’ Executive Director Dave Clark. “The commitments from these four CDFIs allowed us to access over $3M in New Markets Tax Credits which was a crucial piece in moving this project forward.”

Four CDFIs came together to fund this higher-risk, leveraged loan. Partner Community Capital, is based out of Charles Town, WV., and serves central Appalachia. Fahe, located in Berea, KY offers mortgage and community lending services throughout WV and neighboring states. Appalachian Community Capital, focuses on small business lending in underserved communities throughout the region from their base in Washington, D.C.. Woodlands Community Lenders, a sister organization to Woodlands Development, based right here in Elkins, focuses on small business support and lending specifically in Randolph and surrounding counties.

CDFIs are incentivized to take on riskier investments than conventional banks specifically in underserved communities. CDFI lending is designed to help move downtown development forward and support small business startups who struggle to access enough credit. CDFI financing is often used in concert with community banks to help a startup business or individual qualify for a traditional loan.

If you are interested in pursuing non-traditional lending locally, please reach out to Woodlands Community Lenders through our contact form on this website.