As many states wait patiently for President-elect Obama’s stimulus package to come next year, Rhode Island governor Donald Carcieri is taking matters into his own hands. Carcieri recently announced a stimulus package that will be aimed specifically at Rhode Island small businesses.

“Our small business community represents 90 percent of the businesses in Rhode Island and employs 25 percent of our workforce,” Carcieri said in a press release. “Getting capital into the marketplace and helping strong companies grow is one of the most important things we can do to turn the tide and get Rhode Islanders back to work.”

Here are some of the highlights.

  1. Rhode Island banks have pledged $165,000,000 to make new loans to small and mid-sized Rhode Island businesses over the next two years.
  2. Funds (about $7 million) for the Small Business Loan Fund (SBLF) recapitalization have been secured through contributions from several local banks.
  3. Ten percent of new money directed to the SBLF program will be ear marked for micro loans of less than $50,000.
  4. The Governor will ask the state legislature to authorize a Kushner approval to support the creation of a $25,000,000 loan guarantee program.
  5. The Governor will seek to reinstate a tax credit that enables qualifying small businesses to take a tax credit against their Rhode Island state filing for guarantee fees paid to the US Small Business Administration.
  6. The Business Development Company of Rhode Island (BDCRI) is prepared to commit up to $5,000,000 in gap financing to Rhode Island businesses that may need more funding than their senior lenders are willing to extend.
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