WVCAP Collateral Support

WVCAP Collateral Support

Provides collateral enhancement to help West Virginia businesses secure conventional bank loans they otherwise cannot obtain.

The WVCAP Collateral Support program is administered by the West Virginia Jobs Investment Trust (WVJIT) and the West Virginia Economic Development Authority (WVEDA) under the WVCAP umbrella, which is capitalized through the U.S. Treasury State Small Business Credit Initiative (SSBCI). The program addresses a specific barrier to bank lending: businesses that are operationally creditworthy but cannot secure conventional bank loans because their available collateral falls short of lender requirements. By providing collateral enhancement, the program enables participating lenders to extend loans they would otherwise decline.

Eligible applicants include for-profit businesses and nonprofits located in West Virginia across all sectors. The instrument is not a direct loan or grant to the applicant; rather, it functions as a credit-enhancement mechanism that sits alongside a bank transaction, reducing the lender's collateral risk. As with other WVCAP programs, applications flow through the WVCAP online portal and are subject to joint WVJIT-WVEDA committee review.

This program is best suited to West Virginia businesses that have a viable bank relationship and a clear lending purpose but face a collateral shortfall preventing loan approval. It is complementary to the WVCAP Subordinated Debt and Seed Capital Co-Investment programs, which address different gaps in the capital stack. The Technical Assistance program under the same umbrella can help applicants prepare financial records and applications before approaching lenders.