Budget & Taxes (Small Business)

HB 5028 creates the Small-Town Main Street Recovery Act, providing grants to West Virginia municipalities with fewer than 25,000 residents. The bill directs the Department of Economic Development to fund storefront upgrades, small business support, and broadband improvements in these communities. Municipalities must coordinate applications with county commissions or regional development authorities to receive priority consideration. The program aims to support economic revitalization in smaller towns through direct financial assistance for key infrastructure and business needs.

This bill creates the Small Business Investment Grant Fund to provide financial support to eligible investors who make qualifying investments in West Virginia small businesses. The fund, administered by the West Virginia Small Business Financing Authority, will offer grants up to $25,000 per investment (with a maximum of $100,000 per investor) for investments made between July 2027 and January 2029. To qualify, businesses must meet specific criteria including annual gross revenues under $1 million, operation primarily within West Virginia, and no more than 50 in-state employees. Investors must hold the investment for at least two years to maintain the grant, and businesses that relocate or close within two years must repay the grant amount to the fund.

HB 5404 creates an Office of Entrepreneurship within the West Virginia Secretary of State's Office. It directly assists new and early-stage businesses (operating fewer than five years) by providing policy support, technical resources, and acting as a liaison with state agencies. The bill allocates $350,000 for fiscal years 2027-2028 to fund two full-time staff positions and support these services. This office would focus on helping businesses during their critical first three to five years of operation.

HB 5651 creates a statewide program to support West Virginia microbusinesses (defined as businesses with 9 or fewer employees). It establishes a permanent state fund to provide grants for training, equipment, and microloans through partner organizations, while requiring state agencies to pay certified microbusiness vendors within 15 days for goods or services. The bill also mandates simplified compliance guides for small businesses when new rules affect them and encourages awarding small state contracts to certified microbusinesses. This program prioritizes rural areas, veteran-owned businesses, and entrepreneurs lacking traditional financing access.

HB 4003 creates the WV First Small Business Growth Act, offering tax credits to investors who fund certified "growth funds" that invest in eligible West Virginia small businesses. The program, administered by the West Virginia Department of Commerce, provides a 15% annual tax credit (after the first two years) against insurance premium taxes for qualified investments. To qualify, growth funds must use 100% of investment proceeds within three years to make "qualified investments" in businesses with fewer than 250 employees operating primarily in West Virginia. This directly affects growth investors (who receive tax credits), growth funds (which must be certified), and eligible small businesses receiving capital.

SB 1, the Small Business Growth Act, creates a new tax credit program administered by the West Virginia Department of Commerce to incentivize investment in small businesses. It provides insurance companies with a credit against their state premium tax equal to 15% of qualifying capital investments made by certified "growth funds" into eligible West Virginia businesses. Eligible businesses must have fewer than 250 employees and principal operations in the state, and investments are limited to 20% of a growth fund's capital authority or $7.5 million per business. The credit is claimed annually based on certified investments, with the program requiring annual reporting and prohibiting certain investment types.