Few regions of the country have experienced as much economic pounding as McDowell County, WV. Once a booming coal county with close to 100,000 people in the mid-20th century, it has been pummeled by coal industry job losses and flooding through the years. The latest 2007 census estimate was 22,000. Can you imagine a 78% population loss in just a couple of generations in your area? 

But as often occurs, tough times generate creativity, persistence and innovation. One inspiring sign, among others, is the work of Executive Director Rachel Lester and the McDowell County Economic Development Authority. Few EDA’s around the state have been as aggressive, but perhaps desperation pushes people to take greater risks and become more innovative? Whatever the source, what McDowell’s EDA has done with a simple micro-loan program is quite amazing.

After the most recent flooding wiped out many businesses, the EDA made several very low-interest loans (1% interest) available to businesses. Many were small (an average of around $11,000 per loan), but they helped. In fact, the EDA has made over 300 small loans to businesses throughout the county over the last 5-6 years. There are 19 in play right now.

What is amazing about the EDA’s approach is that they didn’t wait for businesses to ask for the loans. They proactively took the opportunity to businesses. As businesses demonstrated an ability to pay back initial small loans, the EDA asked the business owners if they could use more to expand. And they did. Now, the EDA can directly track over 700 new or saved jobs to the program. In a county with one of the country’s highest poverty and historic unemployment rates, that is quite amazing.

Not content just to loan money, the EDA has taken a leadership role in promoting the very businesses they’ve loaned to. Think of it as improving the odds of success in their portfolio. They spotlight the businesses on the radio, in press releases, in all kinds of promotional and marketing communications.

Many of McDowell’s projects have been traditional “old economy” style projects – an industrial park, a Federal prison, a landfill. The Hatfield-McCoy Off-Road trail system has helped bring in some tourists. However, after engaging in some initial creative community and new economy training, the county seems ready to embrace their creative network of artists, craftspeople, technologists and youth to develop an exciting future vision.

One thing for sure, many communities across the state could emulate the McDowell County EDA’s sense of urgency and innovation with the micro-loan program. Here’s predicting more good news will be coming out of West Virginia’s southernmost county.