West Virginia Capital Access Program
What is the West Virginia Capital Access Program (WVCAP)?
WVCAP is designed to assist credit-worthy companies that may not fit traditional lending models. Through the federal State Small Business Credit Initiative, a component of the American Rescue Plan Act of 2021, West Virginia will receive over $70 million to support qualifying small businesses in the state. Partner Community Capital is proud to participate in WVCAP’s Subordinated Debt and Collateral Support programs.
WVCAP Subordinated Debt Fund
The WVCAP Subordinated Debt Fund supports businesses seeking funding to purchase equipment, expand facilities, and/or obtain permanent working capital.
This program will fund up to 50% of the borrower’s loan, up to a maximum loan amount of $4,000,000. Interest rates are based on market conditions and other risk factors. The loan term can range between 1-5 years, subject to acceptable leverage ratio.
Loan fees include documentation fees and a 1% commitment fee based on the loan amount. Half of the commitment fee is due at signing and the rest is due at closing.
Loans are collateralized with business assets by filing a UCC – 1. Real estate loans are secured by deed of trust. All lien positions fully subordinate to senior lender.
WVCAP Collateral Support Fund
The WVCAP Collateral Support Fund can help mitigate collateral gaps and get a deal across the finish line. The WVCAP Collateral Support Fund can fund up to 20% of loan amount with a maximum collateral support of $500,000.
Interest rates are competitive. Term of loan ranges between 1-5 years, subject to acceptable leverage ratio. Loan fees include a 2% origination fee.
Loans can be collateralized with business assets by filing a UCC – 1. Real estate loans are secured by deed of trust. All lien positions fully subordinate to senior lender.
| WVCAP Subordinated Debt Fund | WVCAP Collateral Support Fund | |
|---|---|---|
| Use of Funds | To purchase equipment, facility expansion and permanent working capital | Collateral support up to 20% of loan amount to augment the collateral that a borror provides to banks, giving lenders greater confidence and willingness to extend credit |
| Maximum Investment Amount | Up to 50% of the borrower’s requirement with a maximum loan amount of $4,000,000 | Up to 20% of the loan amount with maximum collateral support of $500,000 |
| Interest Rate | Market adjusted for risk | Market adjusted for risk |
| Terms | 1-5 years subject to acceptable leverage ratio | 1-5 years subject to acceptable leverage ratio |
| Fees | 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 $2.5 million, plus a documentation fee of $500, upon closing |
| Collateral | 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 |
If you have a deal that might benefit from either of these WVCAP programs or have questions, please reach out to:
Charleston, WV
Justin White
Senior Business Lender
Phone: 304.575.1462
jwhite@partnercapital.org
Fairmont, WV
Kevin O’Connor
SVP and WV Market Manager
Phone: 304.333.6743
koconnor@partnercapital.org
