Fund your West Virginia business

When your own money is not enough, start with a no-cost coach, then read which program actually pays. On the development-authority program below, a lender is in the deal and the authority buys a share. The capital-access loan programs are also aimed at a lender. The seed fund is equity. Regular SBA loans come from a lender too.

What’s different in West Virginia

• Coaching is free. The workshop price is not printed. The SBDC offers free, one-on-one business coaching. The SBDC does not provide financing directly¹.
• The development authority participates with a lender. The range on the program page is $150,000 to $10,000,000. The program does not finance working capital, inventory, or a refinance of existing debt⁵.
• Capital access is three programs, not a check for opening day. Subordinated debt can cover equipment and permanent working capital. Collateral support sits behind a bank loan. Seed money is aimed at early venture work. The flier says the program is set to receive over $70 million, with about $40 million set aside for equity⁷, and it does not say how much is left.*
• One district, and the page lists one office. It is in Clarksburg, and it serves all 55 counties².

Do this

1. Write down what you need and what it is for. Equipment, a building, permanent working capital, and a prototype are different asks. The program pages below do not fund all of them.
2. Book no-cost coaching. The West Virginia SBDC serves businesses with fewer than 500 employees, including startups and offers free, one-on-one business coaching, including help understanding what it takes to start and help finding financing. The FAQ also lists help with the business plan and the financial projections. The SBDC does not provide financing directly. The same FAQ says training workshops often have a nominal fee¹, and it does not print the amount.* Ask what a class costs before you sign up. What you get from the appointment is help preparing the paperwork, not a finished plan and not an approval.
3. Use the SBA office for the whole state. The West Virginia District Office services the entire state. The office it lists is in Clarksburg, at 320 W. Pike Street, Suite 330. That listing says it serves all 55 counties². The page does not list a second district.
4. Understand who lends the regular SBA loans. On the SBA loans page, 7(a) loans are delivered by SBA 7(a) lenders and microloans are provided by intermediary lenders³. The SBA loans guide explains who makes each kind.
5. Use the Economic Development Authority when the project is fixed assets and a lender will share it. The direct lending page is for a loan from $150,000 to $10,000,000. The applicant may be an existing or prospective West Virginia business in a classification the development office is targeting, if the project meets the job test. On real estate and buildings, the authority can participate up to 45% and share a first lien with the lender, who may also take up to 45%. The borrower puts in at least 10% equity. Machinery that is attached to the building uses a 40% cap and 20% equity. Special-purpose equipment uses a 35% cap and 30% equity. Rolling stock is not eligible. The program does not finance working capital, inventory, or a refinance of existing debt. The authority funds after the project is finished, so you need interim financing. A personal guarantee is required from an owner with 20%⁵ or more, unless a letter of credit replaces it. What you get from a favorable review is a formal application, not an approval.
6. Read the capital-access flier for the column that matches the money. WVCAP is for businesses that are creditworthy but may not fit a traditional loan. The page names subordinated debt and collateral support, plus a seed capital co-investment fund⁶. On the loan flier, the seed fund is for early work that can attract venture capital, such as proof of concept, a prototype, and hiring key people. The subordinated-debt column is for equipment, a facility expansion, and permanent working capital. The subordinated debt sits behind the senior lender. The flier prints a maximum of $2,000,000 per company over the life of the program. Collateral support is 20% of the loan, with a maximum of $500,000. The flier is a three-column sheet, so read the column for the program you want before you treat one cap as all three. The flier says the program is set to receive over $70 million, with about $40 million set aside for equity⁷, and it does not say how much is left.* The participants named on the flier include Partner Community Capital, Woodlands Community Lenders, INNOVA, and the Jobs Investment Trust. Ask which participant is taking applications. Technical assistance on the same flier can pay for a plan, financial modeling, or accounting help for applicants and portfolio companies. It is not rent.
7. The Secretary of State funding page lists more programs than these. On the funding page, the Appalachian Regional Commission serves government entities, higher education institutions, and nonprofits in Appalachia, and USDA Rural Development serves nonprofit or government entities serving rural communities and towns with fewer than 50,000 residents. Neither lists a business as the recipient. County economic development authorities list matching grants up to $41,500 for businesses looking to expand or develop within their county⁸. Use the county lookup on that page to find yours, and ask whether a grant is open. Be wary of anyone selling access to a guaranteed grant.
8. Keep your paperwork ready. Lenders ask for formation documents and an EIN. Register your business and Get your tax IDs are the West Virginia versions.
9. After a declared disaster, the SBA can lend directly. Disaster assistance covers several kinds of loan the SBA makes itself after a declared disaster, including physical damage, economic injury, and military reservist economic injury, and only if you qualify⁴. A disaster by itself does not qualify you. Check the declaration and the loan type before you apply.

What you get back

An appointment with a coach, and help preparing what a lender or a program participant asks for. A loan decision comes only if you qualify, from the lender on a participation loan, from the authority on whether it takes its share, and from the capital-access participant on the program you applied to. These pages do not promise a finished plan or an approval.