(Editor’s note: This is the second in an occasional series focused on questions from Providence Business News readers for R.I. Secretary of Commerce Stefan Pryor. See the first one here.)
What action is R.I. Commerce taking to stop the loss of our businesses to other states? We must act now to reverse the high rate of closures and invest in the supports that help our small businesses survive and thrive in our beloved state of Rhode Island.
According to the U.S. Small Business Administration, between March 2023 and March 2024, Rhode Island experienced 5,385 new business openings alongside 4,854 closures, resulting in a modest net gain of only 531 establishments. Small businesses accounted for the majority of this activity, with 5,144 openings and 4,644 closures.
This high turnover underscores the fragility of our small-business ecosystem and highlights the urgent need for targeted, coordinated support to address systemic barriers such as limited access to capital, complex and fragmented assistance programs, and inequitable access to resources.
In fact, Rhode Island compares favorably to its neighbors on this front. When looking at the SBA dataset that’s referenced, Rhode Island recorded a net gain of 531 businesses. On a per-capita basis, during the March 2023 to March 2024 time frame identified, Rhode Island’s startup figures and net growth figures were among the strongest in New England, exceeding those of our neighboring states – Connecticut and Massachusetts. In fact, Massachusetts experienced a net loss of businesses.
Additional indicators show continued entrepreneurial momentum in Rhode Island. According to the Rhode Island secretary of state’s office, there were 14,929 new-business registrations in 2025 – an all-time high and more than a 10% increase from the previous year, as well as roughly 40% higher than a decade ago.
Taken together, these indicators show that Rhode Island continues to have strong entrepreneurial activity and a growing business base. That said, we cannot rest on our laurels. We must continuously strive for better supports and resources for our small businesses.
Commerce administers several key programs to address needs we heard directly from Rhode Island businesses. They include:
The Small Business Assistance Program, which partners with six lenders to provide direct loans to entrepreneurs and small businesses, particularly women- and minority-owned enterprises, as well as those in underserved communities. SBAP offers microloan amounts from $2,000-$25,000 and larger loan amounts up to $750,000. Since the program’s inception, 321 small businesses have received $9.8 million in state funding plus $40 million of private funding.
Another program is SupplyRI, which helps small businesses connect with some of Rhode Island’s largest buyers, strengthening local procurement opportunities and creating a more resilient supply chain. In 2025 alone, there were 730 contracts awarded to 122 unique suppliers.
Additionally, the Innovation Voucher program invests in businesses’ R&D to help them catalyze growth and bring their innovation to market. Since the program started, 154 projects have been supported through 121 companies, generating 24 new patents and $47.1 million in new investment.
Under Gov. [Daniel J.] McKee, the State Small Business Credit Initiative was implemented, providing venture capital, loans and technical assistance to promote entrepreneur and small- business stability, growth and success. Since 2022, 112 investments and loans have been made, totaling over $26 million, and leveraging over $48 million in private funds.
Rhode Island Commerce offers a variety of programs to support small businesses (and all businesses) – but the most important takeaway is this: Businesspeople do not need to navigate these offerings on their own. We’ll help you identify the programs and resources which match your needs. Contact Commerce at 401-521-HELP or visit
commerceri.com to learn more.
Why not do away with the $400 business tax? People coming in here trying to start a business, trying to hire people, trying to support the economy, paying multiple layers of taxes, have to pay a tax just for the right to try and start a business? Let’s get rid of that.
Gov. McKee recommended reductions to the corporate minimum tax rate to $375 in FY2024 and $350 in FY2025 but those proposals were not enacted. Other ways which Rhode Island has sought to keep costs down for business include, for example, maintaining the lowest top marginal corporate income tax rate in New England and extending the Net Operating Loss Carryforward for corporations. In 2022, the final elimination of the car tax removed annual taxation on business vehicles and fleets. In 2023, a tangible tax exemption of up to $50,000 was enacted, effectively eliminating this tax for roughly 75% of businesses. Additionally, beginning in 2024, the litter control tax was eliminated, as it was not serving its intended purpose. This saves food and beverage retailers, wholesalers, and manufacturers throughout the state nearly $1 million per year. These and other efforts have helped to simplify compliance with requirements – and have lowered expenses for businesses in meaningful ways.
What is being done to change our poor ranking as a business-friendly state, and how can we help?
First, how Rhode Island ranks depends on which ranking you are looking at. In 2025, U.S. News & World Report ranked Rhode Island’s Economy #16 in the nation and, as to key subcategories, the state ranked #8 for Business Environment and #14 for Growth. SimplifyLLC ranked Rhode Island the 7th Best State for Entrepreneurs. Again, there are other rankings with varying methodologies and perspectives.
Any publication’s particular ranking only takes into account certain specific factors and does not capture the full picture. Here’s the reality: Rhode Island remains among the most competitive states in the Northeast – supporting existing businesses, attracting new ones and driving job creation. Since Gov. McKee took office in March 2021, innovative companies including Anduril [Industries Inc.], REGENT Craft Inc., Havoc Inc. and Organogenesis [Holdings Inc.] have chosen Rhode Island. Corporations such as Amazon and AAA have landed and expanded here with significant operations. And over 35,000 private-sector jobs have been created.
The governor’s proposed FY27 budget aims to further strengthen the state’s momentum through a $115 million Economic Development Bond that invests in new industrial land, in growth centers such as Quonset Business Park and the 195 District, and in promising industries such as ocean technology, defense, and the life sciences. We need more industrial land and other such investments to enable the growth that our economy is capable of going forward.
Advocating for these needed measures will ensure that Rhode Island and its businesses are well-positioned for continued positive momentum into the future.
(Do you have a question for R.I. Commerce Secretary Stefan Pryor? Send it to PBN editor Mike Mello at mello@pbn.com.)
