Mark S. Hayward | Director, U.S. Small Business Administration Rhode Island District Office
1. Was 2019 a good year for small businesses in Rhode Island? Absolutely. Historically, when the economy is down, SBA lending goes up, as banks are looking for an SBA guarantee to mitigate the risk they face on loans. When the economy is doing well, we see the opposite. Lenders are willing to approve more loans without paying for an SBA guarantee, as the likelihood those loans will default is lessened due to positive economic trends.
2. Are you seeing a surge in the creation of any specific types of businesses? Rhode Island has a rich history in the hospitality and service industry. Last fiscal year, the top industries in the SBA lending portfolio in Rhode Island were once again restaurants, followed by auto body, child day care services, trade contractors, and fitness and recreational centers.
3. Are there any unique opportunities ahead in 2020 for small businesses? In 2020, the SBA will expand its focus towards Opportunity Zones, HUBZones, rural and veteran outreach. These programs will provide opportunities for small businesses. Opportunity Zones will drive investment money towards underserved communities. HUBZones will provide government contracting opportunities to Census-identified underutilized business zones.
4. How much do the technology and medical-technology industries account for within the state’s small-business arena? Per the 2019 Small Business Profile, health care and social-assistance small businesses employ more than any other small-business industry in Rhode Island [43,170 employees]. Professional, scientific and technical services rank sixth on that same list [16,118 employees]. In terms of the number of actual small businesses in each of those industries, the ranks swap. Professional, scientific and technical services rank first for the number of small businesses [14,881], and health care ranks sixth [7,930].
5. Are there any SBA programs that you wish more small-business owners would take advantage of? Yes, free counseling/mentoring and government contracting assistance. The SBA funds the Rhode Island Small Business Development Center, SCORE, our Women’s Business Center, and the Veteran Business Outreach Center to be able to assist with these questions. The U.S. government is the single largest purchaser of goods and services in the world, spending roughly $800 billion a year. The mandate for small businesses to receive at least 23% of that money is a fantastic opportunity. … Our certification programs … can give small companies a bigger advantage in getting access to federal contracts.
Elizabeth Graham is a PBN staff writer. Contact her at Graham@PBN.com.
