West Virginia House Bill HB3425

West Virginia 2023 Regular Session

• Introduced: 2/13/23
• Refer: 2/13/23

Caption

Small Business Investment Grant Fund

Impact

If enacted, HB3425 will amend existing code to create a permanent fund that remains non-reverting, allowing it to accumulate interest over time. Grants of up to $25,000 will be available to individual investors who make qualified investments in certified small businesses. The legislation sets parameters for what constitutes a qualified investment and outlines clear eligibility requirements for participating investors, helping to close funding gaps for small businesses in West Virginia.

Summary

House Bill 3425 aims to establish the Small Business Investment Fund in West Virginia, with the intent of providing financial support to eligible small businesses through grants. This legislation focuses on creating a structured mechanism for individual investors to contribute to local businesses, thereby stimulating economic development within the state. The bill defines a 'small business' primarily as one with annual gross revenues of no more than $1 million and fewer than 50 employees, ensuring that the support is directed towards smaller enterprises that may struggle to secure traditional funding.

Sentiment

Overall sentiment around HB3425 appears to be positive among legislators and proponents of small business advocacy. Supporters see it as a vital step toward enhancing the financial landscape for small businesses and driving local economic growth. However, some concerns were raised about the specifics of the implementation, such as the criteria for grant eligibility and the potential burden on the state budget, which may lead to a more cautious reception among fiscal conservatives.

Contention

Notable points of contention involve the limitations placed on the types of eligible investors and the potential forfeiture of grants if certain conditions are not met, such as the relocation of a business outside of West Virginia within two years. Critics may argue that these restrictions could deter potential investors or complicate the process for small businesses seeking support. This aspect of the bill will be essential in discussions as it could affect its effectiveness in achieving the intended economic boost.