We all know that small businesses form the backbone of Maine’s economy. As the state’s economic engines, they hold great potential for job creation — potential that the state can help unleash.
A $73 million bipartisan measure in the Legislature would support small business growth, commercialize innovations from the research and development community, and invest in key areas such as microbiology, marine resources and technology.
I’m proud of my role in this small business jobs bond package developed by the Joint Select Committee on Maine’s Workforce and Economic Future. It is a package crafted with the input of business, finance and research and development leaders.
In my position on the workforce committee, I heard from experts on what Maine needs to create good-paying jobs, spur innovation and push the economy forward. Because of the recession, some small businesses have lingered on the sidelines, waiting for the right time to expand.
Former state economist Charles Colgan of the Muskie School of Public Service told us that now is the time, after being on pause, for the state to get back into R&D and innovation. “We kind of hit the pause button, but it’s time to hit the play button again,” he told us.
Where the state can be helpful is in providing access to capital to empower promising small businesses to make the jump to becoming medium-sized businesses.
Financing programs that can boost businesses on the cusp of growth are a major focus of the proposal. It would recapitalize the Regional Economic Development Revolving Loan Fund — known as REDRLP and pronounced “red lip” — and financing programs run by the Maine Technology Institute and the Finance Authority of Maine. These programs can make all the difference for a business with loads of good ideas but not quite enough collateral.
These programs have a proven track record of success, making the difference for businesses and job creation in Maine. They also leverage private sector and other monies — as much as 16:1 in some cases.
The workforce committee heard some great success stories from businesses that have been able to take advantage of these kinds of programs.
You’ve likely heard of Molnlycke Health Care, a leading maker of wound care products with multi-million dollar facilities in Maine. One of its subsidiaries is Rynel, a Wiscasset-based maker of specialty foam.
Rynel used a REDRLP loan 16 years ago, grew and caught the attention of Molnlycke, which came to Maine and now has a plant in Brunswick in addition to the Wiscasset facility. Molnlycke has 80 workers in Wiscasset and 45 in Brunswick, with another 40 expected within five years.
Westbrook-based Artel shared how it used these programs to progress to the next level. REDRLP and MTI programs helped it develop from a small maker of circuit boards to making its own products to developing sophisticated equipment needed for testing in life science laboratories. From its start in 1982 with two founding partners, it’s grown to a more than 60 employees with business worldwide.
This is just a small sample of what we heard about the potential of these programs. I wish everyone could have been there for the recent public hearing on the bond proposal. It was a marathon session with companies and business leaders urging support for it.
One of the common themes we heard was that Maine has so much to offer — and that we need to share this good news. I want to say, right now, that I believe in the promise of Maine’s small businesses, workers and economy and want to do right by them.
This bond is one way to do it.
Maine’s economy needs this kind of investment. The Maine Economic Growth Council recommends that we put invest 3 percent of our gross domestic product in research and development. Maine invests only about 1 percent, which places us as 41st in the nation in this area.
Maine needs to act on job creation. We’ve been stuck at the back of the pack in this area, and currently are in the No. 49 spot. We have a long way to go to fully recover from the recession. Maine has recovered less than half of the jobs lost in the recession, compared with 96 percent for New England and 93 percent for the United States as a whole.
This bond package offers smart, targeted investments in areas with great promise. Maine needs this kind of investment in its business future to complete its economic recovery and charge forward.
Rep. Paul Gilbert, D-Jay, is serving his third term in the Maine House of Representatives. He serves on the Joint Select Committee on Maine’s Workforce and Economic Future and the Labor, Commerce, Research and Economic Development Committee.
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