West Virginia Capital Access Program (WVCAP) Expands Small Business Funding Opportunities
Small businesses and startups are the backbone of the American economy. They are responsible for nearly two-thirds of all new jobs in the US each year, and they have a huge impact on local communities. But despite their importance, small businesses and startups often have a hard time accessing the funding they need to grow and thrive. The West Virginia Capital Access Program (WVCAP) is changing that reality as it gives credit-worthy small businesses and startups access to nontraditional funding opportunities.
What Is The West Virginia Capital Access Program (WVCAP)?
The West Virginia Capital Access Program (WVCAP) was created to improve access to capital for small businesses and entrepreneurs in the state of West Virginia.
The program was originally created under the Jobs Act of 2010 which gave West Virginia access to over $13 million to create the WVCAP using the State Small Business Credit Initiative (SSBCI) Federal program. It was then reauthorized under the American Rescue Act Plan of 2021. The reauthorized program allows West Virginia to expand the original program with more than $70 million.
The focus of the program will be to increase access to capital and promote entrepreneurship in underserved communities and businesses.
The program is expected to leverage each Federal dollar with $10 of private investment.
The West Virginia Capital Access Program (WVCAP)’s goals are to:
- Invest In Entrepreneurs
- Fund Innovation and Development
- Grow Companies
- Create Jobs
How Does The West Virginia Capital Access Program (WVCAP) Work?
There are three programs offered through WVCAP: Seed Capital Co-Investment Fund, Subordinated Debt Fund, and the Collateral Support Fund.
Seed Capital Co-Investment Fund
This fund can provide funding up to $2 million in either direct equity investments or convertible debentures with interest rates based on market conditions and risk factors. There is a 100% match requirement, so every $1 of WVCAP funding is matched by $1 of private non-WVCAP capital.
Subordinated Debt Fund
This fund can provide up to 50% of a borrower’s requirement, with the maximum funding from this program at $2 million. Interest rates are based on market conditions and other risk factors.
Collateral Support Fund
Your business may have some collateral, but lenders may be looking for a greater comfort level to extend credit. This fund can provide funding up to 20% of a loan with maximum collateral support of $500,000.
West Virginia Recently Awarded $72.1 Million To Expand West Virginia Capital Access Program
According to a recent Press Release by the WV Governor’s Office, ”Gov. Jim Justice announced today that West Virginia will receive up to $72.1 million from the U.S. Department of the Treasury under a new round of the State Small Business Credit Initiative (SSBCI) to increase access to capital and promote entrepreneurship.”
“Since the day I walked in the door as Governor, I’ve tried to make West Virginia the best state in the nation to chase the American Dream – a place where success and prosperity are right at your fingertips. This is an astounding amount of funding that is going to allow so many of our business owners to achieve that dream,” Gov. Justice said. “It will also help people in our state who maybe have a great idea, but haven’t had the capital to turn that idea into a business. By providing a boost to those kinds of people, we will be able to continue our efforts to diversify our economy and move our entire state forward in new and exciting ways. I could not be more thrilled.” – Governor Jim Justice.
How The West Virginia Capital Access Program (WVCAP) Can Help Your Business
Small businesses are the backbone of the American economy, but they often have a hard time accessing the financing they need to grow and thrive.
Learn more about programs available to borrowers
Want to get connected and learn more about the resources available to your West Virginia business? Apply Here
Getting Started with 3 Steps To Startup
We are excited to share that 3 Steps to Startup is now part of WVCAP. Our resources work to educate and connect WV businesses to those who can move their idea or business to the next level.
3 Steps to StartUp empowers innovators and entrepreneurs who intend to launch a new R&D or tech-focused business, or grow an existing business, in West Virginia. Whether you are seeking expertise, technical assistance, or investment capital, we want to help. Get access to the tools, funding, and resources you need to grow your startup today.
Don’t Wait. Grow & Build Your Company With 3 Steps To Startup
Tags: 3 Steps To Startup, Entrepreneurship, Seed Capital Co-Investment Fund, Small Business, West Virginia Capital Access Program, West Virginia Small Business, WVCAP