Legislature Completes Action on Small Business Growth Act

The West Virginia Legislature completed action on Senate Bill 1, known as the Small Business Growth Act, sending the state’s first piece of legislation of the 2026 Regular Session to Governor Patrick Morrisey for his signature or veto, according to home.wvlegislature.gov.

Tax Credits and Private Equity Investment

Sponsored by Senate President Randy E. Smith, R-Preston, Senate Bill 1 aims to help local small businesses tap into tax credits to secure private investment. The legislation incorporates most of House Bill 4003, the West Virginia First Small Business Growth Act. Under the new framework, financial institutions that invest in state-certified growth funds receive a limited tax credit against the West Virginia Insurance Premium Tax. Oversight of the qualification and compliance process falls to the Department of Commerce.

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To qualify for the program, businesses must principally operate within West Virginia, employ fewer than 250 people at the time of application, and maintain at least 60 percent of their workforce inside state borders.

“This bill shows our small businesses in West Virginia that we’ve got their backs,” Senate President Smith said. “West Virginia has done great work in the past 10 years with its economic development efforts, but I’ve heard from small business owners across the state that they’re hurting, too, and they also need help. They also could benefit from the same kind of investment that large corporations get.”

Smith noted that the initiative draws inspiration from an existing federal program active in 18 other states. To safeguard public funds, lawmakers built specific regulatory requirements into the text. The measure mandates a capital investment within the state while allowing private equity firms to back private enterprises under strict statutory guidelines.

Tangible Impact on Local Communities

Speaker of the House Roger Hanshaw, R-Clay, emphasized that the legislation targets the foundational layers of the state economy rather than high-profile industrial announcements.

“I’m really excited about Senate Bill 1 because of the opportunity it will provide exclusively for our small, West Virginia businesses that can benefit from a pool of capital to grow,” Speaker Hanshaw said. “A business in my community that adds five new positions may not make the top story of statewide news, but that is a tangible, lasting impact with ripple effects for our entire economy.”

The 2026 Regular Session runs through Saturday, March 14, leaving time for administrative preparation as the measure moves to Governor Morrisey’s desk.