West Virginia Jobs
Investment Trust Board

Fifth Floor
1012 Kanawha Boulevard East
Charleston, WV 25301


True entrepreneurship has but one goal, one drive, one primary motivating factor:

WVCAP

WVCAP Lender Information FlyerClick to download flyer
 

WVCAP Informational FlyerClick to download flyer
 

WVCAP Current NewsletterClick to download newsletter


WVCAP Progress Report:  Click to download February 2013 report     Click to download June 2013 Report
 


Do you have a loan request that's out of the box?

The West Virginia Capital Access Program Can Help!

Here’s a great opportunity for both West Virginia lending institutions and small businesses in need of capital. Mountain State small businesses now have anew source of capital in the West Virginia Capital Access Program (WVCAP). The program is made possible through the State Small Business Credit Initiative (SSBCI), a component of the Small Business Jobs Act of 2010. The SSBCI provided $1.5 billion to state programs that support financing for small businesses by leveraging federal dollars along with private capital. The WVCAP program is designed to assist businesses that are creditworthy, but may not fit traditional lending models. WVCAP is set to receive over $13 million that will be made available to qualifying West Virginia small businesses for a limited time. Approximately $7 million will be set aside for equity capital in support of seed stage and early stage businesses. The goal of the program is to create $130 million of new lending and investment activity in West Virginia over the next five years. 

The funds will be administered through eight program participants that are strategically located throughout the state. These program participants were chosen because of their track record of successfully guiding small businesses through the complex process of efficient capitalization. The program also contains an operational assistance component that provides funds to qualifying portfolio companies and other applicants for professional assistance in the areas of: business plan development, financial modeling, marketing and market research, implementation of accounting systems, product branding and executive recruiting.

WVCAP Program Participants

Center for Rural Health
Development Inc.
3465-B Teays Valley Road
Hurricane, WV 25526
(304) 397.4071 Phone
www.wvruralhealth.org
 
INNOVA Commercialization
Group
1000 Technology Drive,
Suite 1000
Fairmont, WV 26554
(304) 366.2577 Phone
www.innovawv.org
 
WV Jobs Investment Trust Board
5th Floor, 1012 Kanawha Blvd.
Charleston, WV 25301
(304) 345.6200 Phone
www.wvjit.org
 
Mid-Ohio Valley Area
Development Corporation
531 Market Street
Parkersburg, WV 26101
(304) 422.4993 Phone
www.movrc.org
 
Regional Economic Development
Partnership
1310 Market Street, 3rd Floor
P.O. Box 1029
Wheeling, WV 26003
(304) 232.7722 Phone
www.redp.org
 
Natural Capital Investment Fund
1098 Turner Road
Shepherdstown, WV 25443
(304) 876.2815 Phone
www.ncifund.org
 
New River Gorge Regional Development
Authority
116 N. Heber Street, Suite B
Beckley, WV 25801
(304) 254.8115 Phone
www.nrgrda.org
 
Wyoming County EDA
PO Box 1828
506A River Road
Pineville, WV 24874
304-732-6707
www.wyomingcounty.com

Product

Description

WVCAP Seed Capital

Co-Investment Fund

WVCAP Subordinated

Debt Fund

WVCAP Collateral

Support Fund

WVCAP Loan

Guaranty Fund

Use of

Funds

To advance intellectual capital: property development, evaluation, including in-depth analysis of market potential; conducting competitive analysis; advance proof of concepts work for scientific discovery; advance prototype design and development needed to attract early stage venture capital financing; hiring key personnel and related activities

To purchase equipment, facility expansion and permanent working capital

Collateral support up to 20% of loan amount to augment the collateral that borrower provides banks, giving lenders greater confidence and willingness to extend credit

Guarantees up to 20% of loan amount for working capital loans for providing lenders with greater confidence and willingness to make small business loans

Maximum

Investment

Amount

Up to $500,000 per individual company over life of investment

Up to 50% of the borrower’s requirement with a maximum loan amount of $500,000

Up to 20% of loan amount with maximum collateral support of $250,000

Up to 20% of loan amount with maximum loan guarantee amount of $250,000

Interest

Rate

Market adjusted for risk (8–10%)

At or below prevailing market interest rates

At or below prevailing market interest rates, where applicable

N/A

Terms

1-5 years for convertible debt

1-5 years subject to acceptable leverage ratio

1-5 years subject to acceptable leverage ratio

1-5 years subject to acceptable leverage ratio

Fees

Reimbursement of legal fees and other customary transaction fees associated with equity investments

1% commitment fee based on loan amount due at signing of commitment letter and balance due at loan closing; borrower pays for documentation fees, as incurred

2% of the loan amount with a maximum loan amount of $1.25 million, plus a documentation fee of $250 upon closing

2% of the loan amount with a maximum loan amount of $1.25 million, plus a documentation fee of $250 upon closing

Collateral

When applicable

Secured promissory note and UCC-1 and deed of trust in case of real estate; all lien positions fully subordinate to senior lender

N/A

N/A


Does your business need capital?

Don't fit the traditional business model?

The West Virginia Capital Access Program Can Help!
 
Mountain State small businesses now have a new source of capital through the West Virginia Capital Access Program (WVCAP). The WVCAP is designed to assist businesses that are creditworthy, but may not fit traditional lending models. 
 
The program is made possible through the State Small Business Credit Initiative (SSBCI), a component of the Small Business Jobs Act of 2010. WVCAP aims to create $130 million in new lending and investment activity in West Virginia over the next five years. Your company could qualify for a loan from one or more of the West Virginia Capital Access Funds!
 
WVCAP Seed Capital Co-Investment Fund
 
The WVCAP Seed Capital Co-Investment Fund can provide funding of up to $500,000 to assist businesses in advancing intellectual capital, for market and competitive analysis, design and development of advance prototypes, to hire key personnel and more. Rates are competitive and market adjusted for risk (8-10%), with 1-5 year repayment terms. The Seed Capital program has a 100% match in which every $1 of WVCAP funding is matched by $1 of non-WVCAP capital.
 
WVCAP Subordinated Debt Fund
 
If your business needs funding to purchase equipment, expand facilities or obtain permanent working capital, the WVCAP Subordinated Debt Fund may be the answer.
 
This program will fund up to 50% of the borrower’s requirement, up to a maximum loan amount of $500,000. Interest rates are very competitive — at or below prevailing market rates. Term of loan ranges between 1-5 years, subject to acceptable leverage ratio.
 
Loan fees include a 1% commitment fee, based on the loan amount, with 1/2 due at signing of commitment letter and balance due at loan closing. Borrower also pays documentation fees. 
 
Loans are collateralized through promissory notes and the filing of a UCC - 1. Real estate loans are secured by deed of trust. All lien positions fully subordinate to senior lender.
 
WVCAP Collateral Support Fund
 
In today’s cautious lending environment, your business may have some collateral, but lenders may be looking for a greater comfort level to extend credit. The WVCAP Collateral Support Fund can provide funding of up to 20% of loan amount with a maximum collateral support of $250,000. This program can augment your business's existing collateral and give lenders more confidence to approve loan request.
 
Interest rates are competitive. Term of loan ranges between 1-5 years, subject to acceptable leverage ratio. Loan fees include a 2% origination fee, based on a maximum loan amount of $1 25  million and a documentation fee of $250 at closing.
 
WVCAP Loan Guaranty Fund
 
The WVCAP Loan Guaranty Fund is designed to guarantee up to 20% of the loan amount for working capital loans. The loan guarantee provides lenders with a higher level of confidence and willingness to make small business loans.
 
The program will provide a guarantee of up to 20% of the loan amount, with a maximum guarantee of $250,000. Interest rates are competitive. Term of loan ranges between 1-5 years, subject to acceptable leverage ratio.
 
Loan fees include a 2% origination fee, based on a maximum loan amount of $1.25 million and a documentation fee of $250 at closing.
 
 
WVCAP Operating Assistance Fund
 
Through a grant from the Claude Worthington Benedum Foundation, additional funding for operating assistance is available for qualified businesses through the WVCAP. The WVCAP Operating Assistance Fund will provide technical assistance to WVCAP applicants and portfolio companies who demonstrate significant potential. The fund is intended for companies with gross sales less than $5 million. 

Possible areas for assistance may include, but are not limited to:
• Business plan development
• Financial modeling
• Market research and industry intelligence
• Product/branding techniques
• Executive recruiting and strategic planning exercises
• Design and development of marketing materials and strategy
• Design and implementation of cost accounting systems
 
For more information about any of the lending programs available through WVCAP, please contact Marketing Liaison Matt Wender at mwender@cwv.net

WVCAP Application:  Click to download application