Strategy 2: Increase the Availability of Growth Capital to Rhode Island Businesses
Companies ready to grow in Rhode Island often face difficulties accessing the capital they need to expand and create new jobs.
Action: Establish $20 million Growth Capital Guarantee Program
The Growth Capital Guarantee Program will be established by repositioning existing guarantee authority in the Rhode Island Industrial-Recreational Building Authority (IRBA) program. The IRBA board will reduce its guarantee authority under the current program from $80 million to $50 million and a new authority will be created to oversee a $20-million Growth Capital Guarantee Program.
Action: Create a new alliance between RIEDC and the Business Development Company of New England
BDCNE brings to Rhode Island a portfolio of more than $400 million in growth capital products. The products offered by BDCNE include the capability to provide up to $2 million in junior debt and up to $5 million in mezzanine and equity capital. BDCNE will also consider investments in R.I. companies from its $30.0 million mezzanine fund, MB Capital III.