Our small businesses play a crucial role in fostering innovation, job creation and community identity here in the Ocean State. Rhode Island’s small businesses have shown resilience and adaptability over the last three years, helping to serve as the driving force behind our state’s economic growth. When small businesses thrive, so do local communities.
That’s why Rhode Island’s small-business owners were among our highest priorities as we worked with the General Assembly to craft the fiscal 2024 “RI Ready” state budget.
To ensure an environment conducive to small-business growth, it is imperative for us to make it easier to do business and provide accessible financial assistance and mentoring programs. The General Assembly recognized that and as a result, the FY24 budget includes more than $13 million in funding opportunities for our small businesses through the Executive Office of Commerce and
R.I. Commerce Corp. That total doesn’t include tax relief by exempting the first $50,000 of tangible personal property for businesses – a policy that will effectively eliminate the tax for 75% of Rhode Island businesses and save municipalities time from having to process paperwo
rk that typically results in little revenue. Likewise, it doesn’t include the elimination of the litter permit fee, which is a big win for more than 1,000 food establishments. We are refocusing our efforts on a litter-free Rhode Island and are asking all small businesses to take the pledge at www.litterfree.ri.gov.
The new budget provides $5 million for “Gateway to Government,” creating a one-stop shop for businesses to register – eliminating the need for business owners to visit multiple websites and locations. From businesses affected by the pandemic, we heard of the need to expand eligibility to R.I. Commerce’s programs so that more could take advantage of the assistance they provide. Now, businesses with less than $2 million in revenue can take advantage of the Rhode Island Rebounds, Technical Assistance, and Take It Outside programs at a higher amount. These programs have proven incredibly successful and have helped hundreds of local businesses rebound from the pandemic, grow and thrive.
The importance of innovation when it comes to building a sustainable, diverse economy cannot be overstated. That’s why we included $2 million in funding for R.I. Commerce-led innovation incentives such as Innovation Vouchers, which help small businesses access research so they can innovate and scale in a rapidly changing marketplace, and Innovation Networking Matching Grants, which allow companies, institutions, nonprofits and startups to innovate and expand on things ranging from energy efficiency to designing new medical devices. That’s in addition to the $45 million to grow our life sciences economy with the development of wet-lab incubator spaces and establishing a quasi-public agency to coordinate life sciences investments.
We’re also providing an additional $1 million to fund our main streets through the Main Street RI Streetscape Improvement Program, which – among many other major projects – has helped fund the renovation of the historic United Theatre in downtown Westerly and provided upgrades to Conimicut Village in Warwick. We’ve also allocated $1 million to continue to expand the SupplyRI program, which connects small businesses with large suppliers to help them grow and expand their businesses, and a further $2 million in funding to the Small Business Assistance Program, which helps Rhode Island’s small businesses access capital.
Legislation also plays a pivotal role in our strategy to help small businesses. This year, we revised the arduous process for renewing a secondhand dealer’s license. The removal of the annual public hearing has eased the way for thrift, antique and consignment shops to operate without unnecessary bureaucratic hoops to jump through. This helps our communities foster a richer, more varied retail ecosystem.
Collaboration goes a long way, and we applaud House Speaker [K. Joseph] Shekarchi, Senate President [Dominick J.] Ruggerio, the General Assembly and our community groups and leaders for continuing to work hard with one goal in mind: to make our economy stronger and Rhode Island a better place to do business.
We thank our small businesses for their hard work, dedication, sacrifices and determination to succeed. Our communities are pools bursting with diverse talent waiting for us to tap into them. Creating an economy rooted in inclusivity and equity and ensuring everyone has a level playing field to innovate and excel helps lay a strong foundation for long-term success and prosperity for generations to come.
Daniel J. McKee is the governor of Rhode Island. Elizabeth M. Tanner is Rhode Island’s secretary of commerce.
