West Virginia Capital Access Program

Funded by the Small Business Jobs Act of 2010, Claude Worthington Benedum Foundation and West Virginia Department of Commerce, this program provides debt and equity capital and technical assistance to small businesses seeking expansion financing.

See the chart below for more information.

Product Description
Seed Capital Co-Investment Fund
Subordinated Debt Fund
Collateral Support Fund
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; other research 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 for working capital loans 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.
N/A
N/A
Term
1 to 5 years for convertible debt
Maximum loan term of 2 years (Up to 15 year amortization)
Maximum loan term of 2 years
Maximum loan term of 2 years
Fees
Reimbursement of legal fees and other customary transaction fees associated with equity investments.
1% commitment fee based on loan amount, ½ due at signing of commitment letter and balance due at loan closing; borrower pays for legal 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 guarantee 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
Other
Seed Capital, at a minimum, will have a 100% match of non WVCAP sourced capital, i.e., for every $1 of WVCAP capital invested, another $1 of non-WVCAP capital will be invested.
 
Collateral support will be evidenced by a certificate of deposit placed at the financial institution providing the senior financing; all interest accruing on the account will be paid to the WVCAP program participant
100% of the guaranty amount will be held in cash in a reserved account by the originator.