OP-ED: Helping Small Businesses Grow And Create Jobs

Note: The following is an op-ed from the office of State Senator Katherine Clark.

Last week, I continued my series of small business forums by featuring Charles Grigsby who spoke about how the state is helping businesses grow and create jobs through the Massachusetts Growth Capital Corporation (MGCC).  It was a terrific event attended by government leaders and many business owners from across the district representing a wide range of sectors. The event also served as a stark reminder of the challenges that our businesses face in this difficult economic environment, including restricted access to capital.

According to the most recent data available from the Small Business Administration, small businesses in Massachusetts account for nearly 48% of our private sector jobs. Last year, recognizing that a lack of access to capital posed a threat to small business development and job creation, I was proud to support the Economic Development Reorganization Act of 2010 that created the MGCC. By consolidating two state entities previously responsible for debt and equity financing and business advice, businesses now have a centralized resource at the state level that offers access to capital and financial guidance. 

MGCC provides access to loans, lines of credit, loan guarantees, and targeted technical assistance. In short, the MGCC helps small businesses find the capital and guidance they require to grow and create new jobs in our communities. Since last October, the MGCC has provided $13.8 million in loans to 38 companies and two micro-lender intermediaries, leveraging over $36 million in private financing.  Its entire portfolio consists of more than $25 million in loans, and it has leveraged $162.66 million in private financing.

This is just one way in which the state can and should assist small businesses – by providing access to the tools they need to succeed, including access to capital.  Many of our local businesses represent solid investment opportunities, but they may need help and training to make that case, or they may be poised to grow but unable to secure private financing.  By providing access to working capital for small businesses, technical financial assistance and partnering with micro-lenders,  the MGCC assists the individual business; and, in so doing, it improves the business environment and jobs picture within our communities.

These are the types of innovative, public-private partnerships that we should continue to develop and support. If you own a small business and need assistance or information about available support and programs, or if you would like to attend our next small business forum, please contact my office at 617-722-1206.

Senator Clark serves as Vice Chairman of the Joint Committee on Community Development and Small Business