SSBCI 1.0 has an impressive track record of aiding small businesses and entrepreneurs in West Virginia , and SSBCI 2.0 will advance the dedicated work already set in motion . The investment is also expected to catalyze up to $ 10 of private investment for every $ 1 of SSBCI capital funding , amplifying the effects of this funding and providing small business owners with the resources they need to sustainably grow and thrive . WVJIT , which manages the SSBCI funding , has a comprehensive plan in place for the allocation of the money to help fund various programs .
“ SSBCI 1.0 made the WVCAP possible . Initially , the WVCAP was an experiment in knitting together many stakeholders in the ecosystem and letting each organization play to their strengths — think investors , lenders , advisors , mentors , service providers , state and local officials , innovators and inventors ,” says Zulauf . “ With SSBCI 2.0 , the same systems , supporters and advocates have experience with the WVCAP , and the goal is to make it the best program in our country .”
The WVCAP gives small businesses that need capital and may not fit the traditional lending model a new source for capital .
“ West Virginia ’ s business ecosystem lacks access to alternative financing programs , like seed investment capital , non-traditional debt and quasi-equity ,” says Zulauf . “ Aspiring entrepreneurs and small business owners most often cannot get bank financing to launch their companies . Having access to the WVCAP will allow for new business formations in this state to happen , and that directly leads to new job creation .”
SSBCI 2.0 will allow the WVCAP to have an even stronger impact , and in addition to the access to capital funding , technical assistance ( TA ) services are a major asset to participants .
“ We found one of the success metrics of the WVCAP was our TA program . We were unique as we were one of few who had a TA program tied to the WVCAP program ,” says Michele O ’ Connor , senior investment manager at WVJIT . “ TA is vital to assist companies to succeed and move forward .”
The $ 72.1 million will help fuel the entrepreneurial spirit and grow the start-up base in the state , and
Highlights of SSBCI 1.0 :
• WV received $ 13.1 million to create the WVCAP
• 53 loans and investments were supported and generated almost $ 91 million in private funding
• Average funding size was $ 1.71 million
• 1,165 jobs created / retained
• Median business size : 6 full-time employees
• Transactions in low-moderate income areas : 34 %
• Transactions in non-metro areas : 40 %
• Top industries assisted
◦ Manufacturing
◦ Professional , scientific and technical services
◦ Health care and social assistance
◦ Other services
the WVCAP is ready to help . The program leaders are excitedly looking for businesses to invest in . Businesses of any shape or size are encouraged to apply for a loan .
“ This program will help small businesses find funding to launch or grow their business . In partnering with local lenders and local banks , the support system for the small business will be very impactful ,” says O ’ Connor . “ All people involved with the program are wanting to see small businesses succeed .”
Small businesses can be awarded this money through developing a strong business plan , deciding which WVCAP program they would like to apply for and proceeding to work with private sector financing partners to collaborate with the WVCAP for the financing to be approved .
“ The entrepreneurial process starts with the seed of an idea — seeing a need for a business service or solution and developing that solution . Next is to put the plan on paper , seek critical input and criticism from trusted friends and family and then , if it is really something you are passionate about , seek the funding . That is where the WVCAP funding to support that new business can come into play ,” says Zulauf .
PROGRAM PARTNERS