2026 REGULAR SESSION

Introduced

House Bill 5651

By Delegate Dittman

[Introduced February 17, 2026; referred to the Committee on Energy and Public Works then Finance]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §5B-2P-1, §5B-2P-2, §5B-2P-3, §5B-2P-4, §5B-2P-5, §5B-2P-6, and §5B-2P-7, and §5B-2P-8, relating to creating a statewide microbusiness support and simplification program; establishing a nonlapsing fund; providing for grants to qualified intermediaries; creating a microloan revolving support option; requiring prompt payment for certified microbusiness vendors; establishing optional micro-purchase set-asides; requiring small-entity compliance guides for certain rules; and requiring annual reporting.

Be it enacted by the Legislature of West Virginia:

ARTICLE 2P. MICROBUSINESS SUPPORT & SIMPLIFICATION ACT.

§5B-2P-1. Findings; purpose.

(a) The Legislature finds that microbusinesses are a major share of West Virginia’s business community and are essential to Main Street services, local supply chains, and rural employment.

(b) The purpose of this article is to improve microbusiness survivability and growth through: (1) Streamlined access to technical assistance; (2) Small-dollar capital paired with coaching; (3) Faster payment on state contracts; and (4) Reduced administrative burden.

§5B-2P-2. Definitions.

For purposes of this article:

"Microbusiness" means a business entity, including a sole proprietorship, with no more than nine employees, or such other standard as may be set by rule to align with common federal or state reporting.

"Certified microbusiness vendor" means a microbusiness registered in the state vendor system and certified by the Division of Economic Development under criteria established by rule.

"Qualified intermediary" means the West Virginia Small Business Development Center, a community-based nonprofit, CDFI, local development district, or other entity with demonstrated capacity to provide microbusiness training, coaching, and lending support.

§5B-2P-3. West Virginia Microbusiness Support Program.

(a) The Division of Economic Development shall establish the West Virginia Microbusiness Support Program to provide statewide coordination and a single intake pathway in partnership with qualified intermediaries.

(b) Priority shall be given to rural counties, downtown districts, veteran-owned businesses, and entrepreneurs lacking access to traditional financing.

§5B-2P-4. West Virginia Microbusiness Support Fund.

(a) There is hereby created in the State Treasury a special revenue fund to be known as the West Virginia Microbusiness Support Fund, which shall be an interest-bearing, nonlapsing fund.

(b) The Fund shall consist of: appropriations; gifts and grants; federal funds; SSBCI-related funds if available; and any other monies directed to the fund.

(c) Moneys in the fund shall be used for:

(1) Competitive grants to qualified intermediaries for training/coaching;

(2) Micro-grants to microbusinesses (through intermediaries) for equipment, licensing, insurance, code compliance, inventory, or e-commerce;

(3) Loan-loss reserves, interest buy-downs, and capitalization to support microloans administered by intermediaries; and

(4) Program evaluation and reporting.

§5B-2P-5. Microloan and technical assistance leverage.

(a) The Division may partner with intermediaries to pursue and deploy federal microenterprise resources, including USDA rural microentrepreneur assistance and SBA microloan-aligned programming, to expand small-dollar lending and technical assistance. 

(b) Any state dollars used for lending support should prioritize leveraging non-state match when feasible.

§5B-2P-6. Prompt payment for certified microbusiness vendors.

(a) For contracts and purchase orders entered into by state spending units, payment to a certified microbusiness vendor shall be made within 15 days after the later of: (1) Receipt of goods/services; or (2) Receipt of a proper invoice, unless a bona fide dispute is documented in writing.

(b) The Auditor and administration shall implement an e-invoice process and a simple dispute notice.

§5B-2P-7. Microbusiness-friendly purchasing and small-entity compliance guides.

(a) The Division of Purchasing may establish a micro-purchase set-aside process for purchases under a threshold that encourages awards to certified microbusiness vendors when practicable.

(b) Any agency proposing a legislative rule with material compliance cost to small entities shall publish a plain-language small entity compliance guide and, when feasible, provide a delayed effective date for microbusiness compliance.

§5B-2P-8. Effective date.

This act shall become effective July 1, 2026.

NOTE: The purpose of this bill is to create a statewide microbusiness support and simplification program

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.