RIEDC Announces Resumption of Job Creation Guaranty Program after Board Approval of Changes Proposed by Governor Chafee
August 17, 2011 | Print this page | Share This |
RIEDC Announces Resumption of Job Creation Guaranty Program after Final Board Approval of Program Changes Proposed by Governor Lincoln D. Chafee
The Rhode Island Economic Development Corporation (RIEDC) announced today that it has resumed the state’s Job Creation Guaranty Program. The RIEDC Board of Directors recently gave final approval to new program rules and regulations proposed by Governor Lincoln D. Chafee which became effective on August 16, 2011. The changes to the program will provide greater access to capital and credit for growth-oriented businesses looking to expand or relocate in Rhode Island.
Under the Job Creation Guaranty Program, the RIEDC is authorized to guarantee loans by private lenders or guarantee certain bond obligations for the benefit of businesses in primarily technology and innovation-driven industries that can create permanent, high-paying, full-time jobs in the state and continue to expand Rhode Island’s knowledge economy. Interested companies are encouraged to visit the RIEDC website at www.riedc.com for more information about the program.
“Economic growth in the 21st century depends heavily on companies built on innovation with primarily ‘soft assets’ like patents, intellectual properties and licenses.
The Job Creation Guaranty Program is a critical part of a capital continuum to attract and cultivate growing businesses that will accelerate the expansion of knowledge-based industry clusters in our state,” said Cheryl W. Snead, Chair of the RIEDC Board Access to Capital Subcommittee and President and CEO of Banneker Industries.
“Companies, particularly small businesses, have consistently told us that access to working and growth capital is vital to their success. With leadership from Governor Chafee, the RIEDC Board has strengthened the Job Creation Guaranty Program and ensured that more existing Rhode Island businesses and new companies looking to relocate here have the financing support they need to grow and create quality, high-paying jobs,” RIEDC Executive Director Keith Stokes said.
The new provisions in the Job Creation Guaranty Program are aimed at making Rhode Island more economically competitive by providing access to working and growth capital to a greater number of businesses. As directed by Governor Chafee, the RIEDC Board capped loan guarantees at $10 million for any single project. The measure will ensure that more companies looking to expand or relocate in Rhode Island can participate in the program.
The RIEDC Board also adopted a program provision, proposed by Governor Chafee in March, to set aside up to $5 million in smaller loan guarantees specifically for small businesses. The RIEDC intends use that portion of the Job Creation Guaranty Program to build on the success of U.S. Small Business Administration (SBA) lending programs by placing additional guarantees of up to 90 percent on SBA 7(a) loans in Rhode Island. Once the plan is approved at the Federal level, the added guarantees will provide further incentive for private lenders to make small business loans backed by the SBA and the Job Creation Guaranty Program. To date, 13 companies from the advanced manufacturing, bio-medical, IT and life sciences industries have expressed serious interest in the Job Creation Guaranty Program.
Six are in-state expansion opportunities and seven are out-of-state business attraction opportunities representing more than 630 new jobs.