A State Unable to Save Itself
So the news is that Rhode Island ranks very low among the states for receipt of small-business, no interest loans through the federal America’s Recovery Capital (ARC) program. Reading along, one can already hear the partisan and ideological attacks on the governor.
Well, those may be forthcoming, but the article lays the blame elsewhere:
The problem for Rhode Island businesses, [state director for Rhode Island Small Business Development Center at Johnson & Wales University John] Cronan says, is that they often aren’t healthy enough to qualify for ARC loans. In addition to other requirements, the businesses must have been profitable for at the least one of the previous two years.
“We entered the recession much earlier than anybody else. Now, we have too many companies that are not bankable,” Cronan said. “You still have to be a stable company to get a loan. The criteria being used is strict. The banks are making loans to stable companies, but we don’t have enough stable companies.”
In other words, the state has so burdened its businesses and burned out its economy that the federal government has little confidence that individual companies would be able to pay back a $35,000 loan. If the General Assembly would just get to work trimming the taxes, slashing the regulations, and eliminating the mandates that it imposes on the economy, this state would soar.