West Virginia absolutely paid off its federal unemployment loans acquired in the course of the COVID-19 pandemic and has sufficient cash to additionally present companies with decrease premium charges subsequent yr, Gov. Jim Justice introduced Thursday.
In the course of the pandemic, West Virginia borrowed about $185 million from the federal authorities via loans from the Division of Treasury so it might proceed to pay unemployment advantages amid traditionally excessive unemployment charges. The state was capable of safe $220 million in state funds for the unemployment insurance coverage belief fund, which allowed it to totally repay the mortgage and supply companies with a 25% discount in unemployment insurance coverage premium prices subsequent yr.
“That is going to be a large discount in prices for our West Virginia companies and I couldn’t be extra pleased with everybody who put in all of the licks that made this potential,” Justice mentioned in an announcement
“From the very starting of the pandemic, I knew that we needed to plan for each the short-term and the long-term to make sure our state might rebound as shortly as potential and proceed to construct on all our current successes,” Justice mentioned. “That’s why, at first, we ran to the fireplace. We made certain that West Virginians had been among the many first within the nation to obtain the additional $600-per-week unemployment profit. After which, as soon as we bought our ft again below us, we budgeted responsibly. We began to see month after month of income surpluses and, ultimately, we had been capable of put away sufficient cash to not solely absolutely pay again this mortgage, but additionally to set our companies up in an excellent place shifting ahead.”
If the state was unable to repay your entire mortgage by Sept. 4, companies would have confronted an automated enhance in its unemployment insurance coverage premiums based mostly on a funding construction that recoups losses from the companies. Many companies are nonetheless recovering from losses brought on by the pandemic and subsequent financial restrictions.