West Virginia Executive Summer 2024 | Page 102

2024 Profiles FINANCIAL SERVICES

West Virginia Jobs Investment Trust

Contact Information : wvjit . wv . gov
By the Numbers :
• Total Transactions :
89
• Approved Transactions :
$ 23 Million
• Private Match :
$ 46 Million
• Jobs Created :
463
• Jobs Retained :
1,284
• Counties Served :
28
No matter how promising an idea may be , becoming a business owner can be intimidating , especially when it comes to securing funds . In fact , for many aspiring entrepreneurs , that may be the thing holding them back from making their idea a reality .
The West Virginia Jobs Investment Trust ( WVJIT ) is a state-supported venture capital fund with a mission to drive economic growth and job creation in West Virginia by investing in innovative start-ups and small businesses that may not fit a traditional lending model .
Through the West Virginia Capital Access Program ( WV CAP ), WVJIT utilizes the State Small Business Credit Initiative ( SSBCI ) to help new businesses launch and grow .
WVJIT ’ s strategy is deeply embedded in its collaboration with key partners to ensure comprehensive support for businesses . These partnerships include The Center for Rural Health Development , Inc .; Woodlands Community Lenders ; Wyoming County Economic Development Association ; Regional Economic Development Partnership ; and Partner Community Capital ( PCAP ).
After SSBCI was launched in 2011 , WVCAP was created and allocated $ 13.1 million in funding . The success of that initiative inspired SSBCI 2.0 , launched in 2022 , which received $ 72.1 million .
“ We continue to be one of the leaders in terms of capital deployment in the nation ,” says Andy Zulauf , executive director for WVJIT . “ The success of this is due to the program design that incentivizes our program participants to participate in WV CAP along with the growing
interest from our community banking partners and the growing community of entrepreneurs and small business owners seeking funding options .”
The significant increase in funding from $ 13.1 million to $ 72.1 million allows WVJIT to support a larger number of businesses , providing them with the financial resources and advisory services necessary to succeed in a competitive market . So far , SSBCI 2.0 has produced 89 transactions in 28 counties , retaining 1,284 existing jobs and creating 463 new jobs .
At the completion of SSBCI 2.0 ’ s allocation , WVJIT hopes to once again achieve stellar economic performance that can match or outperform the success of SSBCI 1.0 in terms of economic performance , capital and jobs created and supported .
“ The program is designed so that when the SSBCI program concludes in 2028 , the funds that have been deployed and recaptured in a successful transaction will remain with the program participant ,” Zulauf says . “ This , in a sense , helps capitalize their loan funds so this capital can be ‘ recycled ’ into their business community .”
WVJIT has recently announced that technical assistance will be added to WV CAP , made possible by an SSBCI Technical Assistance Grant Program awarded to West Virginia by the U . S . Department of Treasury with a total allocation of $ 1.5 million . This program will be known as WV CAP TA and collaborate with PCAP , a leading community development financial institution with more than 20 years of experience .
PCAP will provide participants with one-on-one consulting and educational programs involving both their own staff and outside legal , accounting and financial advisory specialists . Some counseling services include business plan development , financial projections and start-up mechanics .
After identifying their client ’ s specific needs , participants will provide a scope of work for the TA request and , if approved , the client will be partnered with a service provider who will help them complete this request .
This hands-on approach not only helps businesses overcome initial challenges but also sets them up for long-term success .
By addressing critical aspects of business development , such as financial
22
West Virginia Executive | Profiles | 2024