WVCAP Subordinated Debt

WVCAP Subordinated Debt

Provides WVCAP subordinated debt to West Virginia businesses when traditional lenders cannot meet their credit profile.

The WVCAP Subordinated Debt program is a gap-financing instrument administered by the West Virginia Jobs Investment Trust (WVJIT) and the West Virginia Economic Development Authority (WVEDA) under the WVCAP umbrella, which is funded by the U.S. Treasury State Small Business Credit Initiative (SSBCI). The program is designed specifically for West Virginia businesses that are creditworthy but fall outside the underwriting criteria of conventional bank lenders, providing subordinated loan capital to fill financing gaps that traditional institutions will not bridge.

Eligible applicants include for-profit businesses and nonprofits located in West Virginia. The subordinated debt instrument ranks below senior bank debt in the capital stack, which allows the program to take on higher risk than conventional lenders while supplementing — rather than replacing — bank financing. No sector restrictions are stated; the program is broadly sector-agnostic. Applications are submitted through the WVCAP online portal and overseen by the WVJIT-WVEDA joint committee.

Because the instrument is a loan rather than a grant, borrowers are expected to repay principal and any associated interest or fees. The program is best positioned for West Virginia businesses that have demonstrated creditworthiness but face a collateral or credit-gap barrier to conventional bank lending, and that can service additional debt. Complementary WVCAP programs — including seed equity co-investment, collateral support, and technical assistance — may be accessed in combination depending on the applicant's capital structure needs.