Williams said he refused to give Mrs McDonnell money without talking to the governor first
The star witness in a corruption trial of the ex-governor of Virginia and his wife has testified the former first lady sought gifts and loans in return for help with his business.
Prosecutors say Jonnie Williams gave Bob and Maureen McDonnell gifts and loans totalling $165,000 (£97,000).
Mr McDonnell denies wrongdoing. His wife says their marriage was frayed and she had a "crush" on Mr Williams.
Mr Williams is due to resume testifying in Richmond on Thursday.
Mr Williams, the head of a vitamin supplements company called Star Scientific, testified on Wednesday that Mrs McDonnell told him the couple were broke and in debt, and asked him for money and to pay for high-end shopping trips, offering to connect him to the governor in return.
"She said to me: 'I have a background in nutritional supplements, and I can be helpful to you with this project with your company,'" Mr Williams testified on Wednesday in a federal court in Richmond, on the third day of the McDonnells' trial, according to the Washington Post.
"'The governor says it's okay for me to help you, but I need you to help me with this financial situation.'"
Mr Williams, to whom prosecutors have granted immunity, said he insisted on speaking to the governor before giving her any cash, and testified that the governor subsequently thanked him for his generosity.
Mr McDonnell, once a rising star in the Republican Party with aspirations for national office, left office in disgrace in January at the end of his term. Virginia governors are barred from running for a second consecutive term, and he was succeeded by Democrat Terry McAuliffe.
Prosecutors say Mr McDonnell was in financial dire straights, and traded on his position to win gifts of travel and cash from Mr Williams. They say he helped arrange meetings with state officials for Mr Williams and pitched his vitamin supplements in his own dealings with officials.
They have described Mrs McDonnell as a woman with a taste for luxury who was willing to use her husband's position to extract gifts and loans from the wealthy businessman.
Mr McDonnell argues he was only doing for Mr Williams what he would for any Virginia businessman. Mrs McDonnell's lawyers have said their marriage was frayed - keeping her from conspiring with the governor to promote Star Scientific in exchange for gifts.
McDonnell, (centre) at the court on Tuesday, was once seen as a potential vice-presidential candidate
Lawyers for Mrs McDonnell, shown in a May 2011 file photo with Mr Williams, say she had personal affection for him and that her marriage to the governor was on the rocks
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