Economic Development and Small Business Support in West Virginia

By Rev. Matthew J. Watts

Reporters from Mountain State Spotlight have recently highlighted critical issues in economic development, poverty, and workforce development. Notably, Steven Allan Adams of The Parkersburg News and Sentinel authored a comprehensive piece on the West Virginia Press Association’s panel with West Virginia Legislative leadership.

During the West Virginia Press Association Legislative Lookahead on Jan. 5, Erienne Olesh, Executive Director of the Office of Student and Faculty Innovation at West Virginia University, emphasized the importance of supporting small businesses in West Virginia. As reported by Mr. Adams, Ms. Olesh stated that 98% of businesses in West Virginia are classified as small, and they employ 50% of the state’s workforce. Unfortunately, these crucial observations seemed largely ignored.

In the 2023 West Virginia General Legislative Session, the Legislature passed the Governor’s Supplemental Appropriation Bill, HB-2883, allocating $482 million of the $677 million ARPA funds to the West Virginia Economic Development Authority for general economic development.

The Tuesday Morning Group, in July and December 2023, proposed using a portion of these funds for small business and housing economic development in minority and low-income communities across West Virginia. This proposal, unfortunately, did not gain traction with the Governor’s office or the legislative leadership, irrespective of party affiliation.

Del. Kayla Young, D-Kanawha, introduced HB-4606, a bill supporting small business economic development. This bill, along with its predecessors, has been presented annually since 2018. Sen. Glenn Jeffries, R-Putnam, who initially introduced the bill in 2018, did not place his own bill for discussion in the Economic Development Committee in 2023, despite being its chairman.

Current legislative session bills related to small business economic development include:

HB-4606 WV Small Business & Minority Economic & Workforce Taskforce: Del. Young 

HB-4496 Small Business Payroll Tax Credit: Del. Michael Hornby, R-Berkeley

HB-4642 Small Covid Relief Fund: Del. Sean Hornbuckle,  D-Cabell

HB-4811 Small Business Grant Fund: Del. Young 

This story gains significance considering existing laws — the 2004 SB 573 (Minority Economic Development) and 2009 HB-2950 (Neighborhood Housing and Economic Stabilization) — already under the purview of the WVEDA. The EDA could feasibly fund and implement these laws.

Reports suggest Governor Justice has appointed himself as acting Chairman of the WVEDA. Additionally, little progress is reported in the work of the Select Committee on Coal Communities, despite evident community distress. While large corporations benefit from significant funding, small businesses and coal communities seem neglected.

The silence from legislators of these distressed areas and the lack of advocacy from various political groups in West Virginia is concerning. It appears that the current administration, despite proclaiming support for business and economic development, primarily favors large corporations, sidelining small businesses.

For further inquiries, don’t hesitate to get in touch with Rev. Matthew J. Watts

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