(Host) Some of the federal stimulus money headed to Vermont is designed to help businesses pull the economy out of recession.
As part of an occasional series on "Tracking the Stimulus,” VPR’s Ross Sneyd reports how Vermont is trying to decide how to spend 17 million dollars.
(Sneyd) Every state has gotten a variety of funds from Washington that’s supposed to help create jobs.
The Vermont Economic Development Authority is the key to how that money will be spent here.
VEDA, as it’s commonly known, plans to offer discounted loans or loan guarantees for working capital in small business, manufacturing and farming.
Jo Bradley is in charge of VEDA.
(Bradley) "So much of what’s happened has been about the negative news that we hear. I think it’s very important for us to get out and tell folks there’s money here. We can help you if you’re thinking of a project, now’s the time to do it.”
(Sneyd) Bradley says small businesses have been hurt by the banking crisis when they were cut off from lines of credit.
So VEDA has plans for a program that will provide them the working capital they need.
The same thing is in the works for farmers, who need cash to buy seed for spring planting.
(Bradley) "It’s really a continuation of what we do day to day, just on a larger scale and I think it’s going to be really important for all of us to get and let businesses know that the money is here.”
(Sneyd) Others in economic development say that will help businesses position themselves for economic recovery.
Frank Cioffi is with the Greater Burlington Industrial Corporation. He says if Vermont spends the stimulus money well, it’ll be an advertisement to big national and multi-national companies.
(Cioffi) "They’re going to have to expand and contract in areas around the globe. And this might mean that some Vermont locations are at risk. Or there might be an opportunity to consolidate other operations into Vermont in existing Vermont locations.”
(Sneyd) The only question at the moment is exactly how the stimulus money will be divvied up.
Bills in the Legislature would rely heavily on VEDA to distribute the money. Governor Jim Douglas has now offered his own proposal, also relying on VEDA.
(Douglas) "I think that we have a lot of commonality among the proposals that the legislative committees have put forth and what I’ve announced today. … But the concept is one in which we agree. So I think we have a lot of similar views as to what ought to be in this package.”
(Sneyd) House Speaker Shap Smith says he’s glad the administration is following a similar path. He says he thinks the final bill will help Vermont recover from the recession.
(Smith) "I do think it makes a difference for our small businesses to have a place to go to see if they can access some capital or access credit, particularly in these turbulent times when a lot of banks are having a harder time lending. The Vermont Economic Development Authority provides a different place where people can go and get credit.”
(Sneyd) Vermont businesses will have access to the cash as soon as lawmakers and the governor agree to a final plan, probably in the next few weeks.
For VPR News, I’m Ross Sneyd.