RIEDC Financing Programs Create, Retain More than 400 Jobs in 12 Month Period
May 12, 2008 | Print this page | Share This | Email this page
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Rhode Island Economic Development Corporation programs leverage federal dollars to grow and retain jobs across the state
The Rhode Island Economic Development Corporation’s Small Business Loan Fund (SBLF) and Micro Loan program have helped create and/or retain more than 400 jobs in the last year. Since June 2007, 12 loans totaling $2.6 million were awarded to both small and mid-sized businesses located in communities throughout the state.
The agency recently completed its annual analysis of the program, which was created in 1986 to retain viable businesses, retain jobs, promote job growth, support skill and wage upgrades, attract new businesses and assist viable businesses that cannot obtain funding through traditional sources.
"Small businesses and start-up companies make up a significant part of the Rhode Island economy. The use of federal funds to promote job growth in these companies provide a timely boost to the state's economic development efforts ," said Governor Donald L. Carcieri. "Efforts to both retain and expand small businesses are essential at this time."
"Tough economic conditions like those we now face make programs like the Small Business Loan Fund and micro loan program especially valuable," said RIEDC Executive Director Saul Kaplan. "You cannot grow jobs without capital. These programs help Rhode Island companies to develop new products and services, enter new markets and create new jobs."
The SBLF and micro loan programs are funded through awards from the U.S. Economic Development Agency. Given that funds for the loan come from a federal source and not the State of Rhode Island, the state has no financial risk in the event a loan goes into default.
One recent recipient of an SBLF loan is Concordia Manufacturing, LLC, which received a $500,000 loan to assist in its plans to expand its medical manufacturing operations. As part of these expansion efforts, Concordia will be leasing a 24,575-square-foot facility in Warwick, Rhode Island for medical manufacturing use. The total capital cost for this expansion is approximately $1.6 million, which includes the build out of expanded clean room space and the purchase of new manufacturing and test equipment.
“Access to these funds will play an integral role in our company’s expansion efforts into the biomedical space,” stated Randal Spencer, president and CEO, Concordia. “It is extremely important for us to keep our competitive edge, and this expansion will allow us to increase our capacity for research and development along with medical manufacturing to meet the needs of our current and future clients.”
Concordia currently employs 57 people in Rhode Island. The company plans to hire an additional 10 to 15 people within the next 24 months as a result of these expansion efforts.
Improving Rhode Island’s financing programs is central to RIEDC’s Economic Growth Plan, which seeks to increase the percentage of jobs in Rhode Island that pay above the national average wage of $42,000 from 40 to 60 percent. Other priorities include a regional attraction campaign to promote new company relocation and expansion, a partnership to leverage property made available through the I-195 relocation, programs that strengthen the state’s workforce development platform, an effort to increase the state’s research and development capacity and expansion of programs that support the state’s small businesses.
Other SBLF loan recipients in the last 12 months include Green Grocer, New England Syrup Co., Inc., CoreSmart Interactive, LLC, KC Enterprises LLC, E.B. Thomsen Inc., Jungle Jim Preschool, Court Drive LLC, American Partners, Inc., PSP LLC, and Malco Saw Co., Inc.
“We are modernizing all of RIEDC’s finance programs to create new jobs and to better reflect Rhode Island’s economic development goals," said Kaplan. “Creating a set of financing tools that optimally address Rhode Island’s economic challenges and opportunities is critical to growing a 21st century innovation economy that produces higher wage jobs at every wage level.”
