PROVIDENCE – The R.I. Commerce Corp. at its board meeting on Thursday approved the hiring of two consulting firms to advise on the implementation of a new State Small Business Credit Initiative program in Rhode Island.
The quasi-state public agency said it sought proposals from qualified firms to aid in the design, creation, implementation, operation and management of the federal SSBCI program.
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“This is a very important initiative,” said R.I. Commerce Corp. President Jesse Saglio. “These two consultants will help us think through the market dynamics, think through the gaps, think through the best ways to address the pockets within our small-business community that don’t get liquidity, that don’t get the appropriate access to capital.”
The two firms selected are the Council of Development Finance Agencies, which works with state governments and municipalities, and Cromwell Schmisseuer, a venture capital firm. Saglio said the Council of Development Finance Agencies will be responsible for focusing on various lending products, while Cromwell Schmisseuer will handle state-sponsored venture capital programs.
The SSBCI program was established through the Small Business Jobs Act of 2010 and was reauthorized and amended through the American Rescue Plan Act, which infused the program with $10 billion in federal funds to assist small businesses that were financially impacted by the COVID-19 pandemic nationwide. Of that $10 billion, Rhode Island received more than $56 million for credit and equity initiatives to fund small-business credit expansion activities in the state.
“Small businesses have been on the short end of the stick, so I am pleased to see this initiative,” said David M. Chenevert, executive director of the Rhode Island Manufacturers Association and an R.I. Commerce board member.
Many of the state’s small businesses are facing financial hurdles and were already financially fragile at the outset of the pandemic, R.I. Commerce noted in its request for proposals.
According to the RFP, “It is expected that this program will inject capital into small-business support and capital access programs, provide collateral support, facilitate loan participation and enable credit guarantee programs. It will boost Rhode Island’s small-business venture capital programs and provide funding for technical support and assistance.”
The RFP stipulates that consultant candidates should have demonstrated experience in providing advice and guidance to the federal government or to a state or states in connection with SSBCI programs.
The following is the scope of work the consultants will be delivering in their advisory role: assessing specific capital needs; identifying best practices for SSBCI programs in other states; developing programs to increase liquidity in capital markets for small and minority-owned businesses; building capacity for the program implementation and its management systems; identifying strategic partners; designing technical assistance programs; and implementing compliance and reporting systems.
The bid amounts were not disclosed.
In other board action, the agency approved paying $18,000 to O’Neill Consulting Group Inc. to expand the agency’s executive search beyond its current eight positions to also include candidates for a director of broadband strategy and a deputy secretary of commerce to address the state’s housing issues.
Daniela Fairchild, director of operations and special projects, said the broadband position will be funded via federal dollars. Rhode Island is slated to receive more than $150 million in federal funds for a broadband project through the Infrastructure Investment and Jobs Act passed by the U.S. Congress.
The agency also approved the amending of the tax credits award for the Cranston-based Mearthane Products Corp. to allow the company to change its business plans under the Rebuild Rhode Island Tax Credit program.
The company, which received its $815,000 tax credit award in February of 2020, revised its original business plan, expanding its operation in Woonsocket but not in Winchester, Virginia due to the impacts from the pandemic and higher demand of some of its products.
R.I. Commerce also approved the funding to purchase two additional parcels at the Port of Providence. The agenda item was discussed among board members and Gov. Daniel J. McKee in executive session, so details of the transaction have not yet been made public.
In late October of 2020, the agency approved the purchase of land at the Port of Providence, authorized by state voters in November 2016 when they approved up to $20 million in bonds.
(This story has been updated throughout to include R.I. Commerce Corp. board vote results and comment from R.I. Commerce Corp. President Jesse Saglio and Rhode Island Manufacturers Association Executive Director David M. Chenevert.)
Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com. You may also follow him on Twitter @CassiusShuman.
