Senate Calls for Loan Program to Aid Small Businesses

The House’s bill to aide small businesses during states of emergency saw significant changes in the Senate Wednesday, giving lawmakers more control of the…

The House’s bill to aide small businesses during states of emergency saw significant changes in the Senate Wednesday, giving lawmakers more control of the aide program.

The original West Virginia Small Business Emergency Act included a laundry list of potential aide written into emergency rule by the director of the Department of Homeland Security and approved by the governor

But Chair of the Senate Economic Development Committee Senator Bob Williams said Wednesday the bill was too broad and too many details needed to be considered in a hectic time like a state of emergency.

 Instead, the committee is proposing a small business emergency loan program that can be enacted through executive order.

“It’s simply going to be a loan program that will be kind of a micro loan program, small amounts, perhaps up to $5,000 per loan that will help small businesses get over the hump,” Williams said.

The program is capped at a total of $2 million and is only available for businesses with less than 50 employees who are impacted by a declared state of emergency.

Businesses will have two years to pay back the loan and the interest rate will be set at half the federal prime rate so it can fluctuate with the market.

Loan applications will be accepted for 90 days after the close of any state of emergency.

“So, when the governor says the state of emergency no longer exists, then they’ll have 90 days to go through their records and see what kind of losses they have and apply for the loan,” Williams said.  

Williams said the governor has access to $2 million in his civil contingency fund, which is a possible source of funding for the program. If the governor should need more than that $2 million, the bill requires him to call the legislature into special session to appropriate the funds.
 

Small Businesses Struggle With Water Ban

As the water ban was lifted throughout the Charleston area yesterday restaurants and bars started to open their doors for the first time since Thursday.

Deno Stanley is the owner of Adelphia Sports Bar and Grille in downtown Charleston. He said when he received word last Thursday that he would have to close because of the water ban he was not happy.

“It was pretty catastrophic, it cut us down about 90%, I’m afforded the luxury because I’m a restaurant that serves alcohol, we were able to keep the bar open for a little bit and try to offset some of our losses,” Stanley said.

Stanley was busy Tuesday as many people filed into his bar and grille on their lunch hour —  the first normal day in downtown Charleston in almost a week. Stanley said for each day they were closed they were losing $6-8,000 a day. He said they’re looking to see if they can get help from federal aid or even a deferment of 30 or 60 days.

John Saville’s family owns Taylor Books in Charleston where they’ve used the off-time to clean the place thoroughly. He said they’re looking into whether help is available through their insurance for the sudden closing.

“Well, being closed we’ve lost a lot of revenue and we’re working with our insurance company right now to see what the availability of funds is for business interruptions and things like that,” Saville said.

Alisa Bailey is Executive Director of the Charleston Convention and Visitors Bureau. She said it can be tough for businesses to deal with a sudden closure. She said local hotels dealt with sharp declines in visitors and restaurants lost thousands of dollars each day they couldn’t open.

“The Charleston Convention and Visitors Bureau is trying to access what the negative direct economic impact will be on the front line employees loss of wages, we had a lot of hotels that didn’t have a lot of people in them and of course all of our restaurants were closed, so that has a negative impact on not only the facility and the businesses, but also the people that work for them,” Bailey said.

Bailey said she and her staff are looking at studies done after the BP spill in the Gulf of Mexico in 2010 and what that has meant to local tourism long-term. She said the fear now is what the chemical spill will do to perception down the road.

"It may take anywhere from a year to two years to really get back and convince people that it's a wonderful place," Bailey said.

“It may take anywhere from a year to two years to really get back and convince people that it’s a wonderful place,” Bailey said.

Bailey says it will take a while before anyone realizes the ultimate economic effect that the closures have had on businesses and the city. 

New Committee to Focus on Small Businesses

In his first press conference as Speaker of the state House of Delegates, Speaker Tim Miley announced the intended formation of a new committee in his chamber, the committee on small business, entrepreneurship and economic development.

The committee will be separated from the one already in existence in the House which is focused on the energy industry and labor. Miley said this new committee is important because small businesses are the backbone of future economic growth in the state.

Chaired by Del. Doug Skaff of Kanawha County, Miley said his intention for the committee is to appoint delegates with personal experience as current or previous small business owners.

 “I want people who have been there, in the trenches, with that experience on that committee,” he said.

“Those are the people who are there day in and day out when the rubber meets the road trying to determine how they can succeed, how they can employee their employees and how they can make a better life for themselves and their employees.”

Because a new committee can only be established during a legislative session, Miley has established a pre-emptive work group of the committee members. They will travel the state holding forums to discuss the future of small businesses with entrepreneurs.

In a statement released Wednesday evening, House Minority Leader Tim Armstead said it is time to make bold changes to encourage the creation of small businesses and entrepreneurs across the state.

“Job creators and entrepreneurs work hard to grow their businesses and employ hard-working West Virginians,” Armstead said.  “They have shared with us innovative and common sense solutions to the problems they face each day and we have worked hard to advance those solutions.” 

“We are confident that, if the Democrat leadership truly listens to those who are struggling each day to make their payroll, they will quickly learn of those very basic solutions that have worked successfully in neighboring states and across the country.”

 

ARC conference seeks to encourage small business growth

Growing entrepreneurship. That was the focus of the Appalachian Regional Commission’s annual conference in Charleston.

Members from the 13 Appalachian states shared their experiences and ideas on how to create an environment that will encourage entrepreneurs to start or grow their businesses into the future, but many agreed it starts with education.

By the federal definition, 97 percent of the businesses located in West Virginia are classified as small businesses with less than 200 employees. Seventy percent have less than 20 employees, which Commerce Secretary Keith Burdette said very telling of West Virginia’s business climate.

“Small business is big business in West Virginia,” Burdette said.

Burdette and his staff joined business owners, non-profits and educators from the ARC member states at the annual conference, which was hosted this year by the only state to fully lie in the region.

This year’s theme addressed building small businesses: “Entrepreneurship: Transforming Appalachia’s Economy.”

“We had practitioners, people who in their own communities work very hard to provide technical assistance, education, capital and incubation services to have a discussion about what it is they do, what works for them and to share those ideas with other parts of Appalachia,” said Earl Gohl, the ARC’s Federal Co-Chair.

The purpose, Gohl said, is to discuss and share ideas centered on how to make Appalachia a viable environment for entrepreneurs.

“In my work, it seems like everyone has a small business they run out of the back of their truck or out of their garage or out of their shed. The challenge we have is to provide the environment for those folks to succeed and for those folks to grow,” he explained.

The conference hosted a number of strategy sessions discussing how to create value chains with local business, how to gain access to capital and start up money, and this session called “Real-World Ready,” focused on embedding entrepreneurial lessons in public and higher education.

“Eight out of every ten students indicates that they want to own a business. Eight out of ten,” said Ron Thomas, Vice President of the National Association for Community College Entrepreneurship, who moderated the session.

“Now, here’s the correlating problem, they want to own their business, they want to be an entrepreneur, but they’ve not taken courses or had support systems at the school in order to help them become an entrepreneur. There’s something wrong with that equation,” he added.

“West Virginia has always been a state of small business people and entrepreneurs and so we know they’ve got the motivation. The issue is how to we give them the skills to be successful,” said Burdette.

Burdette said education is the key, but as others point out, it’s not always that easy.

“We have all these now requirements for students now to be able to graduate, science, math, etc., so you’ve got to get a little creative,” said Thomas.

Thomas said the way to do that is to embed entrepreneurial lessons into courses student already have to take, and start doing it at an early age to grow creative, business minded thinkers from Kindergarten up.

Burdette said that’s something the state is trying to do.

“It’s an essential step. We’re doing more in both public schools and higher education, but we’ve still got a ways to go,” he said.

Statewide programs like Lemonade Day have elementary school students learning how to start their own businesses with lemons, sugar and water, while more focused programs like those on West Virginia University’s Parkersburg campus have classroom teachers calling staff meetings with their students in conference rooms and hosting trade shows where students can show off their products.

Gohl said it’s never too early and it’s never too late to start thinking like an entrepreneur and these types of programs, where students are taking an active part in not just their education, but in their communities, are the key to creating that essential environment to support an entrepreneurial spirit into the future.

“The challenge in developing entrepreneurs in local communities is really about collaboration. Being willing to reach out and partner with folks and organizations that you don’t usually partner with. It’s those collaborations that end up producing real results. What people find out is they can do much more together than when they work by themselves.”

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