Ranglin: How Many RI Jobs WIll $11 Million Dollars Buy?
Monday, March 17, 2014
Rhode Island state economic development leadership has turned its back on Rhode Island based small businesses. Rhode Island leaders pledged $11 million dollars, almost 85% of $13 million in federal funds to help new start up technology firms instead of lending the funds to existing RI small businesses to help keep their doors open, stabilized and create new jobs for RI workers. At best, technology is not labor intensive - RIDLT forecasts about 75 new technology jobs each year between 2010 and 2020. Rhode Island has lost 40,000 jobs, 8% of its workforce. The unemployment rate is 9.2% overall, the worst in the nation with 13% among African Americans and 18% among Latinos. How many jobs for Rhode Islanders will that $11 million pledged to start up technology companies buy?
In other parts of the nation, 63% of net new jobs from 2009 through 2012 are the result of hiring in small firms, the acknowledged driving force behind employment growth. In Rhode Island 93,000, 96% of all businesses are small businesses employing 55% of the private sector workforce. How many Rhode Island small businesses couldn’t get loans to keep their doors open and pay their workers while the Rhode Island Commerce Corporation was lending State Small Business Credit Initiative funds intended to support local small business, to new and untested startup technology firms, including out of state and even a foreign business? What were Rhode Island’s leaders thinking?
Nationally, black owned businesses are among the fastest growing segments of the economy showing rapid growth in the number of businesses and in total sales. With support from state and federal lending resources, these small black and minority owned businesses are creating jobs in their states in record numbers. In the latest survey, US Census data shows 9,823 minority firms in Rhode Island with 6,400 employees. How many Rhode Island black and minority companies couldn’t get loans from the federal funds held by the Commerce Corporation that could have supported increased hiring and decreased the extremely high unemployment rates among black and Latino workers?
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe $13 million in federal funds were allocated to Rhode Island to build and develop capacity for small businesses to create new jobs and hire more workers. But that $13 million allocation under the Small Business Credit Initiative is pledged to pay out $9 million to the Slater Fund and $2 million to Betaspring to fund new technology companies. Just $2 million will go to existing, economically challenged Rhode Island small businesses.
The Rhode Island Black Business Association has a solution – change the priority to focus on lending to existing small businesses. Modify the state’s application for the State Small Business Credit Initiative – the source of these funds – establish a microbusiness loan program and a collateral support program targeted to existing Rhode Island small businesses – those employing less than 20 workers. Use the fund to sustain and grow existing Rhode Island small businesses and minority businesses - and create more jobs - now - for Rhode Islanders.
Lisa Ranglin is the President of the Rhode Island Black Business Association. To learn more visit www.ri-bba.com.
Related Slideshow: New England States Battle Over Jobs
Here are several examples of business and job raiding by and against New England states, according to the Good Jobs First report,
.
Related Articles
- NEW: RI DLT Reports Lowest Unemployment Rate Since 2008
- NEW: Rhode Island Unemployment Rate Increases
- RI State Report: Unemployment, Gay Marriage & Fox’s Economic Plan
- Congressional Candidates React to Latest Jobs Report
- NEW: Medicare Sequester Could Cost RI 3,000 Healthcare Jobs
- See the List - Top 25 Deadliest Jobs in New England
- NEW: RI Qualifies For Increased Federal Unemployment Funding
- NEW: Rhode Island Unemployment Rate Up For May 2013
- RI Unemployment Higher than Originally Reported: Up to 9.3 Percent
- Donna Perry: Gambling on a Jobs Strategy
- NEW: Raimondo Announces Plan to Create Jobs + Grow RI Economy
- State Report: Republican Shakeup, RI Loses More Jobs & Climate Change
- NEW: RI Unemployment Numbers Dropped to 8.8 Percent in April
- NEW: Rhode Island Unemployment Remained at 8.9 Percent for June
- Rhode Island Owes Feds $200 Million for Unemployment Benefits
- EXCLUSIVE: Feds Question Jobs & No-Bid Contracts at Providence Housing
- NEW: Raising RI Minimum Wage Would Kill 3400 Jobs—Report
- State Report: Social Media Privacy, Taxi Cab Tax + Jobs for Vets
- NEW: RI Unemployment Rate Down Slightly in November
- NEW: Rhode Island’s Unemployment Rate Drops to 46-Month Low
- State Report: Chafee’s Budget, Unemployment Rate & Gay Marriage Vote
- EXCLUSIVE: MetLife to Cut 500-600 Rhode Island Jobs
- NEW: Twin River Casino to Add 14 Table Games, 90 Jobs
- The Deadliest Jobs in New England
- NEW: RI Unemployment Rate Drops To 9.4%
- NEW: Rhode Island’s Unemployment Rate Now Worst in Nation
- Unemployment Above 25% for Rhode Island Youth
- Ranglin: How Many RI Jobs WIll $11 Million Dollars Buy?
- PODCAST: Are Medical Marijuana Users in RI Risking Their Jobs?
- Top 25 Highest Paying Jobs in Rhode Island
- 8 Alarming Facts About Unemployment in Rhode Island
- NEW: RI Unemployment Rate Drops to 9.2 percent in January
- NEW: Rhode Island’s Unemployment Rate Drops Again
- Alex and Ani Fuels Economy - Creates Thousands of Jobs in RI
- Julia Steiny: Economy To Youth: Make Your Own Jobs
- PODCAST: The Deadliest Jobs in New England
- Which States Are Stealing Jobs From Rhode Island?
- DLT Director: RI’s Unemployment Rate Won’t “Turn Around Overnight”
- NEW: RI Unemployment Rate Increased in December
- NEW: Unemployment rate falls to 10.2 percent
- Are Medical Marijuana Users in Rhode Island Risking Their Jobs?
- LEGAL MATTERS: Kids + Summer Jobs—What’s Allowable?
- Rob Horowitz: The Ultimate City: Bohemians, Gays & Jobs
- Horowitz: Restore Unemployment Benefits to Long-Term Unemployed
- NEW: Rhode Island Unemployment Climbed to 9.1 Percent for August
- RI State Report: EDC Nominees, Unemployment & An E-Cigarette Ban
- College Admissions: The Highest Paying Jobs By College Major 2013
- NEW: Brown Tops-Off $35-Million Renovation Project, Touts New Jobs Plan
- See Which New England States Will Generate the Most Jobs in 2014