MAINE BUSINESS LEADERS URGE PASSAGE OF SMALL BUSINESS JOBS BOND
AUGUSTA – Dozens of business leaders testified in support of the Legislature’s workforce panel’s small business jobs bond during a marathon public hearing before the state’s budget-writing committee Thursday.
The $73 million bipartisan measure developed by the Joint Select Committee on Maine’s Workforce and Economic Future, LD 1827, supports small business growth and the commercialization of innovations created in Maine’s research and development community.
Dr. Charles Colgan, a former state economist, testified that it is an “extraordinarily good time” to provide support to small businesses that have been waiting on the sidelines because of the economy.
“It’s very timely to get back into research and development and innovation,” said Colgan of the University of Southern Maine. “We kind of hit the pause button, but it’s time to hit the play button again.”
Members of the Workforce Committee present a $73m bond proposal to the Appropriations Committee
Maine invests only about 1 percent of its gross domestic product in research and development, rather than the 3 percent recommended by the Maine Economic Growth Council. The state ranks 41st in the nation.
“While the State House environment can be contentious, our committee has put together this bipartisan bond proposal – a home run for Maine’s innovative workers and small businesses,” said House Majority Leader Seth Berry of Bowdoinham, the House chair of the workforce committee. “There is no need for Maine to keep hitting singles. Targeted, smart investment by the state can create good-paying jobs in 21st century fields that will keep our brightest young people here at home, bring dollars into Maine, and move Maine’s economy forward.”
The package is the culmination of the committee’s work over the last eight months after hearing from leaders in the business and research and development communities. The focus of the proposal is to provide funding that will support small businesses and innovation, leverage private sector and other monies, and create the most jobs possible in the near term.
“This small business jobs bond is one of the best examples of bipartisan work here in Augusta. Together we crafted a strategic investment bond that will boost Maine’s economy and job growth,” said Senator Linda Valentino of Saco, the Senate chair of the workforce committee. “Economic experts, business owners, and workers all agree that investment in our state’s innovators will lead directly to commercialization and job creation. This is a smart effort to help bolster Maine’s economic recovery.”
Geoff Gattis, vice president of Bath Savings Institution, testified that the bond proposal would help businesses whose financial needs fall outside of conventional bank financing. He said programs like those in the package can make the difference.
“Business people do not want a hand out. They simple want access to capital to grow their business. I cannot emphasize how important these tools are to community bankers who simply want to help out their neighbors and watch their local economies flourish,” said Gattis, who oversees commercial lending.
The proposal includes:
· $5 million for the FAME Loan Guarantee Program, which leverages $64 for every dollar spent over the revolving fund’s lifetime, and is expected to create or retain 1,935 jobs in the near term alone;
· $15 million for the FAME Regional Economic Development Revolving Loan Program, also known as REDRLP, will be used for flexible loans to create a projected 8,550 jobs, revitalize downtowns and strengthen Maine’s rural economy;
· $10 million for the Maine Technology Asset Fund which will leverage matching funds on at least a one-to-one basis to promote research development, and commercialization for economic development and private sector job creation;
· $8 million for a lab at the University of Maine Cooperative Extension to assist farmers and foresters and to improve plant, animal and human health;
· $15 million for Jackson Laboratories for a new biometric analysis lab which will be matched by $16 million in private and public contributions, making the state a global resource for precision medicine;
· $5 million for a Mount Desert Island Biological Lab which will be matched by $9.5 million in private and public funds to increase biotechnology workforce training from 350 to 500 students per year; and to create a drug discovery and development facility; and
· $15 million to create jobs in the marine economy and increase the sector’s capacity and sustainability.
The Appropriations and Financial Affairs Committee will schedule a work session to vote on these and other bond proposals before the 126th Legislature.
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