By Steven Allen Adams
For The Parkersburg News and Sentinel
Charleston – Gov. Patrick Morrisey held a ceremonial signing Tuesday for a bill – the first to pass the West Virginia Legislature during the recent session – that focuses on benefiting existing small businesses in the state.
Morrisey held a ceremonial bill signing Tuesday afternoon for Senate Bill 1, creating the West Virginia First Small Business Growth Act, at Kirkwood Winery in Summersville.
“When you have these bigger companies in, it’s important that we don’t leave behind the backbone of what’s driven West Virginia’s economy for a very long time. And that’s the small businesses, the families … that are working hard that might have 10, 20, 30 employees, or might have three employees,” Morrisey said. “Far too often, they get ignored through the legislative process. Not today, and not by the legislative actions this year.”
The goal of the bill is to stimulate the state’s economy by encouraging private investment in West Virginia small businesses, those that employ 250 workers or less.
SB 1 establishes the West Virginia First Small Business Growth Program, under which specialized growth funds collect capital from investors to provide financing to eligible small businesses that maintain the majority of their operations and workforce within the state.
“Now we’re focusing on different ways to lift up West Virginia small businesses, those who might have 250 or fewer employees,” Morrisey said. “A lot of those companies sometimes struggle to get the capital they need to invest in their businesses, to grow their plants or their facilities, or to hire employees. This is designed to change all that.”
In exchange for these investments, growth investors receive non-refundable tax credits that can be applied against their state tax liabilities starting in 2029.
“This is money coming in, and investing in West Virginia businesses, who are working and thriving for us. And that’s important,” Morrisey said. “We allocated $15 million a year for that purpose, tax credits that won’t begin to be deducted until 2029. But this is a nice way to really infuse new capital into small businesses.”
To maintain these benefits, funds must meet strict requirements, including investing 100% of their certified capital into qualifying small businesses within three years. The act also includes reporting standards and provisions to recapture tax credits if a fund fails to meet its employment or investment obligations.
Senate President Randy Smith, R-Preston, was the lead sponsor of SB 1 and told attendees of the annual Charleston Regional Chamber of Commerce’s Issues and Eggs breakfast the day before the start of the 2026 legislative session that he wanted to see a bill focus on small businesses instead of only on recruitment of major manufacturers.
“I’m all for trying to bring in the big players,” he said. “But I feel being (a) small business owner, over the years we’ve kind of neglected the small businesses.”
SB 1 passed the Senate in a 27-6 vote on Feb. 6. The House of Delegates later amended the bill to include some provisions of House Bill 4003, one of several bills under the House Republican caucus’ Jobs First – Opportunity Everywhere economic agenda first announced last December. SB 1 passed the House in an 87-3 vote with nine absent or not voting on Feb. 13.
The Senate concurred with the House’s amendments to SB 1 on Feb. 16. Morrisey officially signed the bill on Feb. 23, becoming the first of 306 bills to complete the legislative process.
“That was the first bill to get to my desk. That’s really terrific,” Morrisey said. “I’m eager to see this succeed, and I think it’s going to be another tool in the toolbox to help West Virginia.”
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