W.Va. Small Businesses Have Another Chance For Relief Loans
Some West Virginia small businesses will soon have access to more than $10 million dollars; however, this comes after many businesses were denied relief funding in the early stages of the pandemic.
The West Virginia Economic Development Authority received $10.3 million in federal monies this week. The money will go into a “Revolving Loan Fund” -- which is a self-replenishing fund that uses money from old loans to issue new loans. The fund is intended to help West Virginia small businesses impacted by the pandemic and related shutdowns, according to a Friday press release.
“Small businesses and entrepreneurs are the backbone of our economy and they need a helping hand during these difficult times,” U.S. Sen. Joe Manchin said. “This funding will give our businesses the assistance needed to get back on their feet and contribute to the state’s economy in the years to come as we recover from the virus.”
Under the federal definition, 86 percent of businesses in the state are considered small. Reporting by WVPB this spring found that many small businesses did not receive funding from pandemic-related federal relief packages, which included more than $600 billion in government- backed loans for small businesses nationwide.
More than half of small businesses nationwide fear shutting down permanently, according to a July U.S. Chamber of Commerce poll.
It is unclear yet how the Revolving Loan Fund will be distributed in the Mountain State.