It has been nearly three-and-a-half years since Rhode Island was awarded $13.1 million through the federal State Small Business Credit Initiative.
The funds were to be divided into three portions, with $2.1 million going to the R.I. Small Business Loan Fund, $2 million to Betaspring and $9 million to the Slater Technology Fund. But as of today, only $4.3 million of the allocated amount has found its way to Rhode Island.
The delay in completing the delivery of the full amount is thanks to scrutiny by the U.S. Treasury Department of the practices of both Betaspring and Slater. And while Betaspring has received all $2 million of the federal money for its startup accelerator program, Slater and the SBLF have been shorted. Thankfully, and finally, the federal government has determined that Slater, while technically in violation of some rules, should be allowed to access the rest of its allocation.
As a result, Treasury has asked the state to apply to receive the next $4.4 million tranche of the funds (all of which is earmarked for Slater). And once that tranche is invested, the remaining $4.4 million would be split between Slater and the SBLF, $2.7 million and $1.7 million.
The money could not come at a better time. While the rest of the country is finally showing signs of robust recovery from the recession, Rhode Island’s economy is still fragile. The kinds of companies that Slater identifies and supports are just the tonic this region needs. They are all in growth mode, and will form the core of the next generation of successful entrepreneurs in the region. •