Businesses must pay debts to qualify for small business grants
Small businesses hoping to tap into the Virgin Islands government’s small business grant programme will generally need to have their financial affairs in order — but officials say struggling businesses with approved payment plans may still get a shot.
That clarification came during the Talking Points radio programme recently, where host Damion Grange pressed Junior Trade Minister Lorna Smith and Deputy Director of Trade Dr Lincoln Bobb on whether businesses burdened by outstanding taxes or social security obligations would be automatically shut out of the grant programme.
The government’s small business grant initiative, administered through the Department of Trade, Investment Promotion and Consumer Affairs, is designed to support micro, small and medium-sized enterprises. Past eligibility rules have required applicants to be locally registered, possess a valid trade licence, and be in good standing with statutory obligations.
Talking Points host Grange pointed out that many small businesses likely to seek government assistance may not be in “good standing” financially and asked whether the government was considering debt forgiveness to help struggling operators qualify.
Minister Smith made it clear that outright debt write-offs are not on the table.
“The government is very sympathetic and understanding of the difficulties of small businesses. Especially the micro ones,” Smith said.
However, she explained that businesses in arrears can work with agencies such as Inland Revenue or the Social Security Board to establish payment arrangements instead. “They have their arrangements where you can provide a payment plan. You can go to the social security department or to Inland Revenue, and you can agree on a payment plan over a period of time,” Smith explained.
“I don’t think that they would forgive the debt, so to speak, but you should pay it as you can.”
When Grange asked whether having an approved payment plan would allow a business to remain eligible for grant funding, Smith said yes — though she cautioned that final approval rests with the grant evaluation committee. “It comes down to the decision makers. The committee,” the minister stated.
Dr Bobb reinforced that position, saying the department recognises that some businesses seeking help may already be financially strained. “Yes, we consider it. Because we understand that a lot of people who come in, businesses that come in, they may not be in good standing,” Bobb said.
The exchange also offered a revealing glimpse into the financial strain facing many businesses across the Virgin Islands, particularly smaller operators still grappling with high operating costs, inflationary pressures and sluggish cash flow. The government has repeatedly promoted support for small and micro businesses as critical to economic growth, but critics say these supports do not go far enough to ease the burdens on small businesses across the territory.
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Agreed, they must pay in order to receive anything free.. business persons must clean their house first before any begging.
The little brawl yesterday could have made Headline news also…
We, as workers, have to pay our tax, NHI and SS – we have no choice as they are taken from our wages.
So, all businesses should be forced to pay them too and not helped by Government grants or handouts if they can’t. After all, if the business owner is greedy (so doesn’t pay, even though he can), or is inefficient (so the business is loss-making), then the Government will be throwing (our) money at those who don’t deserve it.
I quite agree, and this is exactly what is happening with the grants. They are being given to businesses who have no financial records and who owes, NHI, SS and Payroll Tax to the detriment of their employees. There is no follow up to ensure that the payment plans are being adhered to and that the businesses have increased their efficiencies. Total waste of taxpayers money
Agreed with you 100%. Its as if the Government do not realise that these businesses are robbing us twice; first by deducting the fees but not paying the money into the respective Government Agencies then getting help from the Government by way of the business grant…all of which forms part of our taxpaying dollars. Some businesses can afford to pay the Government Agencies, ie, SS, NHI amd Inland Revenue; however they are reckless, greedy, has no scruples and damn thief. They prefer to buy fancy clothes & shoes, take vacations, buy a nrw vehicle or squander it on men or women and other things like drink and drugs. I was always astonished when my employer would neglect to pay salary on payday, sometimes not even giving an explanation as to why, but they would just simply disappear and not answer their mobile. Often times, blaming the bank, the Accounts Department or customers owing to the business. Then if you found them, they will either be at the Hair Salon, the Nail Tech, taking their Poodle to the Dog Groomer, shopping at Umi, taking off on a day trip to the USVI, PR or Miami or indulging in some mundane crap instead of taking care of their hard working staff. They also seemed to prefer having a party for their big shot friends and posting it on one or more media platforms or utilising what monies they had to improve the aesthetic of the workplace instead of paying their long sufferring workers. Imagine, being employed by someone who professed to be a person of God. Well, perhaps they need to read the Word of God and let it resonate in their Spirit because a person should be paid for their services and should be paid in a timely manner and also have monies deducted from their salary be paid to the respective Government Agencies in a timely manner. If you are unable to keep up with the responsibilities a business brings, please close or hand over the reins to someone who can properly operate the business. Btw, going to Labour is a waste of time and its happening at too many businesses. These people meed to be put to shame for this type of callousness. Peace & love to everyone!
Make cheques payable to Lorna Bank BVI.
Small businesses are basically being told get your paperwork and payment plans in order then you might qualify for help. That sounds fair on the surface but it still raises a real problem the ones most in need are often the least able to meet those conditions.
So instead of opening the door wide the system is still filtering people through compliance first relief second.
Add to that..Businesses must pay employees benefits to be apart. social security, NHI & tax.
Some of the responses above make me wonder about the basic economic sense of some in the territory. Yes, it’s tough to be a small business in a very small economy, when many customers can use Amazon, etc. to buy exactly what they want from overseas.
But it is NOT the role of government to continue to subsidize loss-making businesses. It just isn’t. If any business does not have its paperwork in order and isn’t paying what it owes, then it deserves to go bankrupt and close. Clearly, the business owner is not up to the job!