2.2-904.2 - Creation, administration, and management of the Small Business Jobs Grant Fund. - Virginia Statutes

§ 2.2-904.2. Creation, administration, and management of the Small BusinessJobs Grant Fund.

A. For the purposes of this section:

"Base year" means the calendar year immediately preceding the 24-monthperiod in which a small business creates new full-time positions making iteligible for grants under this section.

"New full-time position" means employment of an indefinite duration in theCommonwealth at a small business, for which the average annual wage is atleast equal to the prevailing average annual wage in the county or city inwhich the position is located, requiring (i) a minimum of 35 hours of anemployee's time per week for the entire normal year of the small business'operation, which "normal year" must consist of at least 48 weeks, or (ii) aminimum of 1,680 hours per year. Seasonal, temporary, or contract positionsor positions created when a job function is shifted from an existing locationin the Commonwealth shall not qualify as a new full-time position.

"Prevailing average annual wage" means that amount determined by theVirginia Employment Commission to be the average annual wage paid workers inthe county or city. The prevailing average annual wage shall be determinedwithout regard to any fringe benefits.

"Small business" means an independently owned and operated business that,together with affiliates, has 250 or fewer employees in its base year.

B. There is hereby created in the state treasury a permanent nonrevertingfund to be known as the Small Business Jobs Grant Fund (the Fund). The Fundshall be comprised of (i) transfers from the Virginia Jobs Investment Programfunded in Item 98 of the 2010-2012 Appropriation Act and (ii) any othermoneys designated for deposit to the Fund from any source, public or private.Interest earned on moneys in the Fund shall remain in the Fund and becredited to it. Any moneys remaining in the Fund, including interest thereon,at the end of each fiscal year shall not revert to the general fund but shallremain in the Fund. The Fund shall be managed and administered as a part ofthe Virginia Jobs Investment Program established within the Department.

C. Moneys in the Fund shall be used solely for the purpose of providinggrants to small businesses that create at least five new full-time positionswithin any 12-month period. A small business meeting the conditions of thissection shall be eligible to receive a grant from the Fund ranging from $500to $2,000 per each new full-time position that has been created based oncriteria established by the Department pursuant to subsection E. However, inno case shall a small business be eligible for grants for more than 50 newfull-time positions created within the 12-month period.

In awarding grants, priority shall be given to small businesses creating newfull-time positions in areas with an annual average unemployment rate of morethan 125 percent of the statewide average unemployment rate.

D. Grant payments under this section shall be conditional upon the smallbusiness substantially retaining (i) the number of full-time positions in itsbase year plus (ii) the number of new full-time positions for which grantsare to be paid. In no case shall the retention period (as determined by theDepartment) for any new full-time position for which a grant is to be paid beless than 12 months.

No grant shall be awarded or paid for any new full-time position createdprior to July 1, 2010. No grant shall be awarded or paid for any newfull-time position created solely as a result of a merger, acquisition,similar business combination, or a change in business form.

E. The Department shall establish criteria for determining the amount of thegrant to be awarded for each eligible new job created by a small business.Such criteria shall be based on the level of education, training, andexperience required for the job.

F. The Department shall determine the qualifications, terms, and conditionsfor the use of the Fund and the accounts thereof. In connection withapplications for claims made against the Fund, the Department may require theproduction of any document, instrument, certificate, legal opinion, or anyother information it deems necessary or convenient. All claims made againstthe Fund shall be approved by the Department.

(2010, c. 336.)