Action 1: Help Small Business Gain Access to Capital
Implement the Governor’s Small Business Stimulus Package
If Rhode Island’s struggling economy were a company, best business practices would dictate ensuring that its greatest asset is as productive as possible. The small business sector represents more than 90 percent of the businesses in Rhode Island, and employs approximately 55 percent of our workforce. There is no doubt that it is our economy’s greatest asset.
In reviewing our small business outreach this year, we found that access to capital is a perennial challenge for small businesses. The recession, especially the tightening credit market, has made it more difficult than ever for small businesses to gain access to the capital they need. Governor Carcieri’s Small Business Stimulus Package
is a key component of this Economic Growth Plan.
The Small Business Stimulus Package includes:
- An infusion of capital into the state-backed Small Business Loan Fund to encourage lending to small business
- Pledges from the local banks to invest more than »»$165 million into small- and mid-sized Rhode Island businesses over the next two years
- An additional pledge of $5 million in gap financing from the Business Development Company of Rhode Island
- A $25 million state-backed Small Business Guaranty Program
This initiative will have the dual benefit of easing the credit crunch for small business and serving as a catalyst for job growth.
The RIEDC will align its existing capital assistance programs with the Stimulus Package, collaborate with federally backed sources of assistance to ensure that federal and state programs are complementary and easy to use, and work with private-sector entities and financial institutions to increase the availability of business
capital in Rhode Island.
Together, these efforts will provide a full continuum of capital for small businesses, and augment RIEDC’s full menu of small business outreach and support services.