Bold new initiative to build strong economy

Maine should be a leader in providing opportunity for families and businesses. Many of the elements for economic opportunity are present throughout the state. Our educational system is recognized for keeping students in school and maintaining enviable graduation rates. Natural resources are abundant here, and the work ethic of our people is second to none. Indeed, our state leads the way when it comes to the creativity and determination of its labor force.

Economic opportunity, however, requires other ingredients. It requires boldness and a sound long-term strategy. Since being elected to Congress in 1994, I’ve worked to ensure that the federal government makes long-term investments, and does a better job of enhancing opportunity for Maine people and small businesses.

From increasing student financial aid through Hope Scholarships and more Pell Grants, to expanding health care access for children, I’ve fought to give families more of the tools they need to be healthy and productive. By supporting tax relief, a reduction in paperwork requirements, and efforts to make health insurance more affordable for small businesses and working families, I’ve sought to make it easier for economic opportunity to take root.

But more is needed, including business development resources and collaborative public-private partnerships. That’s why I’m pleased the New Markets Initiative, a program I’ve promoted and supported in Congress, is about to yield benefits for working families and small businesses in Maine.

Earlier this summer, Coastal Enterprises Inc. (CEI) – a community development institution based in Wiscasset – was conditionally selected to participate in the New Markets Venture Capital Program (NMVCP). This newly created federal initiative is designed to attract small businesses and jobs to economically disadvantaged areas.

It promises to spark economic opportunity in many Maine communities. To make these venture capital investments possible, Congress authorized the NMVCP for a six-year period and allocated $180 million for tax incentives, loan guarantees, operational expenses and technical assistance grant funding. These resources will be used to attract, supplement and enhance the private capital that will be raised by NMVCP participants.

This effort is administered by the Small Business Administration (SBA) and modeled after the agency’s Small Business Investment Company program. The SBA will provide financial assistance in the form of matching investment funds and operational assistance resources. For final approval, New Markets Venture Capital companies like CEI must raise a minimum of $5 million in private capital for investments and $1.5 million in matching resources to be used to provide operational assistance to the smaller businesses in which they invest.

Having pushed to establish the New Markets Initiative, I’m pleased it will play a role in creating opportunity for areas of Maine that have not benefited from the national economic expansion. This effort promises to compliment the ongoing work of Maine’s Department of Economic and Community Development and State Planning Office, as well as regional economic development organizations such as Eastern Maine Development Corp.

As we look to the future, the investments made through the New Markets Initiative should strengthen the foundation upon which Maine’s economy is built. They should play a role in making sure people across our nation and around the world know that Maine is open for business, and is a leader in expanding opportunity for families and businesses through a bold agenda and a comprehensive long-term strategy.

John E. Baldacci is Maine’s 2nd District congressman.