I’m encouraged that both the president and the governor have shown recognition this week that small business needs governmental support during this economic downturn—an encouraging beginning but we can’t stop there.
President Obama has proposed using up to $30 billion of repaid bailout loans to encourage community banks to lend to local small businesses and giving small businesses a $5,000 payroll tax credit for each new hire—part of a larger federal effort to create more jobs.
Closer to home, the governor has proposed a tax credit for small businesses that hire from the ranks of those who were unemployed, received government assistance or graduated from college in the past two years. The business must keep the new hire on for at least 18 months, offer health insurance and pay at least $18.50 an hour.
The way the governor’s proposal is structured now, I’m concerned too few businesses will be able to take advantage of it—I’d like to see a less-restrictive tax credit that can piggyback on federal efforts to maximize job creation. But at least we’re headed in a positive direction.
We all know that in Rhode Island, creating jobs and rebuilding our economy are our top priorities. We need to support programs that make a meaningful difference for small businesses. Let your federal elected officials know you support the president’s proposal, and get involved in the hearing process that will shape the state initiative as it moves through the State House.