The Virgin Islands Economic Development Authority is requesting a $7.3 million budget for fiscal year 2026 to support expanded efforts in lead generation, international outreach, small business development, and industrial growth across the territory.
The budget request — presented Monday to the Senate Budget, Appropriations and Finance Committee — includes a $6.6 million General Fund appropriation and $700,000 in internally generated revenue. EDA CEO Wayne Biggs said the proposal goes beyond operational needs.
“This budget is not solely about maintaining current operations,” said Biggs. “It is about building capacity, driving outcomes, and expanding our reach throughout the territory.”
The agency, which promotes sustainable economic growth by attracting investment, supporting entrepreneurship, and enhancing workforce development, plans to expand enterprise zones, promote new industrial hubs, and increase access to moderate-income homeownership in FY 2026.
Approximately 70% of the proposed budget is allocated to personnel costs supporting 46 full-time positions. Professional services — such as legal counsel, audit, and marketing — make up the second-largest expense, according to EDA Chief Financial Officer Kelly Thompson Webb.
In FY 2025, the agency celebrated several milestones. The South Shore Trade Zone welcomed its first approved client, Mix Cakery, marking a step toward building a new industrial and logistics hub. EDA also participated in international investment events in Miami, Maryland, Puerto Rico, and Trinidad, boosting the territory’s visibility among global investors.
Media exposure increased as well, with a national feature on PBS’s “Viewpoint with Dennis Quaid” scheduled to showcase the USVI’s growing appeal. The agency reported generating over $650 million in qualified investment leads and a 26% increase in participation in the Economic Development Commission program, which provides tax incentives for companies serving markets outside the territory.
Through the Economic Development Bank, EDA leveraged local and federal funds to support small businesses, energy sustainability, and homeownership. A major initiative was the State Small Business Credit Initiative 2.0, which reduces lender risk and increases access to capital.
“The U.S. Virgin Islands was awarded $57.8 million under the SSBCI program,” said Biggs. “As of July 15, 2025, $15.7 million of the first tranche has been expended or obligated through small business loan guarantees. These investments are projected to create 109 new jobs and retain 100 existing jobs across the territory. Approved businesses represent a diverse cross-section of our economy, from aviation and construction to health care, marine services, social support, hospitality, tourism, and more.”
In addition to SSBCI funding, the EDB approved $705,000 in direct loans in FY 2025, supporting 22 new jobs and retaining 13 across sectors such as food service, transportation, retail, and wellness.
“In total, EDB approved or committed over $16.4 million in financing through both direct loans and SSBCI loan guarantees. These efforts are projected to create 131 new jobs and retain 113 existing positions, reflecting EDB’s critical role in supporting sustainable economic growth and financial empowerment across the territory,” Biggs said.
The VI Slice Moderate Income Home Ownership Program also made headway, with 82 applications requesting $8.7 million in gap financing and 61 approvals totaling $6.2 million. Those funds supported $17.6 million in home purchases and construction.
The EDA’s role in tourism development continues under the Hotel Development Act, which incentivizes hotel construction, renovations, and expansions. Projects supported by the program include the $44.1 million Hampton by Hilton on St. Thomas — set to open in August — along with a luxury resort at Botany Bay, a $12 million revitalization of Sugar Bay, and the historic Hotel 1829 restoration.
Sen. Marvin Blyden emphasized the importance of supporting the local food economy and referenced the success of Tart Wars on St. Croix. He urged the EDA to invest in cultural culinary staples like tarts and johnny cakes. Biggs responded, noting that the upcoming Agro and Food Innovation Center at the Padilla Complex in Frederiksted will provide critical resources to support and grow food businesses.
Sen. Hubert Frederick praised the agency’s return on investment. “The EDA’s ability to secure over $81 million in grant funding — far exceeding its $6.3 million government allocation — speaks for itself,” he said. He rejected the narrative that the agency wastes money and highlighted its community impact, including charitable support for schools.
Sen. Kurt Vialet raised questions about how the territory can attract companies looking to reshore or expand manufacturing, particularly in pharmaceuticals and light manufacturing. He pointed to the EDC’s tax benefits, modern ports, and strategic location as selling points.
“The Virgin Islands lie outside the U.S. Customs zone, meaning recent tariff policies do not apply here,” Biggs replied. He said this has attracted interest from companies in India, China, and Vietnam that are considering establishing production lines in the territory to avoid U.S. tariffs without relocating entire operations.
Vialet said this benefit needs broader promotion and called for legislative support to fund a targeted marketing campaign to attract manufacturers.
St. Croix Source
Local government, Local news
