The proposed Small Business Growth Act aims to create a structured framework for the Small Business Growth Program in West Virginia, which will be managed by the Department of Commerce. The bill defines key terms such as "capital investment," "eligible business," and "growth fund," and outlines the application and certification process for capital investments. Growth funds must submit a comprehensive application, including a business plan and evidence of previous investments, to be considered for certification. The legislation also introduces an insurance premium tax credit for growth investors, detailing the claiming and recapturing procedures, while emphasizing that these credits cannot be refundable or sold on the open market.

Additionally, the bill establishes new operational and reporting requirements for growth funds that receive qualified investments. It mandates that the Department notify growth funds of their eligibility determination within 15 business days, with a provision that if no notification is received by the 20th business day, the business will be deemed eligible. The bill also prohibits eligible businesses and their affiliates from owning or acquiring interests in growth funds if the proceeds are used for capital investments. Growth funds are required to submit annual reports detailing investments, job creation, and salaries, and may apply to exit the program after six years, with a response from the Department required within 15 days. The act is set to take effect on January 1, 2027.

Statutes affected:
Introduced Version: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7
Committee Substitute: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7, 5B-12-8