Small Business Investment Grant Fund
House Bill 2830 would create a new West Virginia Small Business Investment Grant Fund and place it under the administration of the West Virginia Small Business Financing Authority. The bill defines key terms such as “eligible investor,” “qualified investment,” “small business,” and “subordinated debt,” and sets eligibility standards for businesses that can receive certified investments. To qualify, a business generally must be West Virginia-based, have no more than $1 million in annual gross revenue, no more than 50 in-state employees, and limited prior capital raised.
The bill establishes a state treasury fund that is non-reverting and permanent, supported by legislative appropriations and any gifts, grants, or donations. Beginning July 1, 2026, and before January 1, 2028, eligible investors who make qualified investments in certified small businesses could receive grants of up to $25,000 per investment, with a maximum total grant allocation of $100,000 per investor. The authority would review applications from both businesses and investors, certify qualifying businesses, and issue grants in the order completed applications are received.
HB2830 would add a new article to the West Virginia Code creating a state-backed incentive program for private investment in small businesses. It would authorize the Small Business Financing Authority to certify businesses, administer applications, and oversee grant awards from a dedicated fund in the state treasury. The bill also creates repayment and forfeiture rules if a business relocates out of state within two years, closes due to certain criminal conduct, or if an investor fails to hold the equity for the required two-year period, with recovered amounts deposited into the general fund.
Based on the bill text and the absence of recorded committee discussion or votes, the overall sentiment appears policy-oriented and supportive of small business development, with the bill structured as an economic incentive rather than a regulatory restriction. The design suggests an effort to encourage private capital formation in West Virginia businesses by reducing investor risk through state grants. No formal opposition, amendments, or recorded vote history is available in the provided materials to indicate broader legislative sentiment.
The main points of potential contention are likely to be fiscal cost, the use of public funds to subsidize private investment, and the narrow eligibility criteria for both investors and businesses. The bill limits participation to smaller, in-state businesses and excludes professional investors engaged in the business of making private debt or equity investments, which may be intended to target new capital but could also be viewed as restrictive. Another possible concern is administrative complexity, since the authority must certify businesses, process applications, monitor compliance for two years, and enforce clawbacks and interest penalties when conditions are not met.