Column: Small Business Keeps New Hampshire Economy Ticking

By Senator Jeanne Shaheen

Four years ago this week, Congress passed landmark legislation -- the Small Business Jobs Act -- that has provided critical support to New Hampshire's small businesses and our economy. It has since helped countless businesses across our state expand and create jobs, and it represents exactly the kind of policies we need to further support to move our economy forward.

I've always known that the best way to create jobs in New Hampshire is to support our small businesses. That's why when I came to the Senate, I joined the Senate Small Business Committee and immediately got to work on behalf of our small businesses. I was proud to help craft the Small Business Jobs Act, which provided billions of dollars in tax breaks for small businesses, made it easier for businesses to access credit, and boosted the ability of our small businesses to compete in the international marketplace.

Four years later, the Small Business Jobs Act continues to deliver for New Hampshire. The bill has helped small businesses grow, create jobs and keep New Hampshire's economy moving forward.
For example, New Hampshire has been a national leader in implementing the bill's program to boost small business exports, known as State Trade and Export Promotion (STEP) grants. Exporting represents a tremendous opportunity for small businesses, because while 95 percent of the world's customers live overseas, only one percent of small and medium sized businesses sell into those markets. Helping our small businesses reach new markets is a smart way to boost revenue and jobs in New Hampshire.

Since 2012, the state of New Hampshire has received more than $600,000 through the STEP program, an investment that has turned into $3.7 million in export sales for New Hampshire businesses. STEP has been a success across the United States, too. From 2012-2013, the program reported a return of investment of more than 20:1 and supported $575 million in actual and projected state-reported export sales.

Earlier this year, Don Tyler from Corfin Industries, a Salem manufacturer that provides important technology to our nation's national defense companies, testified in Washington about the effectiveness of STEP grants. Mr. Tyler noted that STEP has helped Corfin increase its overall revenue by 30 percent and grow its international sales from 3 percent of the company's revenue to 12 percent in just a few years. As a direct result of STEP, Corfin has hired 22 additional employees and continues to grow.

The Small Business Jobs Act also bolstered access to credit for small businesses. For businesses looking to make payroll or grow, having access to affordable loans is critical. That's why we took a number of steps in the bill to expand effective capital access programs.

First, we enhanced Small Business Administration (SBA) lending programs, which are critical lifelines to New Hampshire businesses. By increasing the percentage of loans guaranteed by the SBA, the bill helped New Hampshire lenders meet the high demand for small business loans. In total, nearly 300 small businesses in New Hampshire received SBA loans, supporting almost $89 million in lending. In the last quarter of 2010 alone, New Hampshire's SBA lending increased 359 percent.

Second, we created the State Small Business Credit Initiative (SSBCI), a public-private partnership designed to help local communities and lending programs meet small business financing needs. New Hampshire has been one of the most effective states at putting this funding to use. As a result of a $13 million investment through SSBCI, the New Hampshire Business Finance Authority has leveraged $168 million in lending to New Hampshire small businesses. This has only further helped our businesses in New Hampshire grow.

Unfortunately, many of these programs have expired or need more support to continue delivering for New Hampshire businesses. The state of New Hampshire has exhausted its funds from SSBCI, for example. That's why I wrote legislation earlier this year to reauthorize SSBCI so that we can continue its track record of success. And as a member of the Appropriations Committee, I helped lead efforts to secure additional funding for the successful STEP pilot program and am working to make the program permanent.

New Hampshire is a small business state. More than 95 percent of our employers are small businesses, and they're truly the backbone of our economy. The Small Business Jobs Act was a smart, practical effort that produced real results for New Hampshire businesses. To continue moving our economy forward, we must work together in a bipartisan way to create a level playing field for small businesses.

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