May 11, 2006

A Case Study in Nurturing Small Business

Author: NIEL CANNON

For the Monitor / Date: May 11, 2006
Page: B08 / Section: Opinion

A key to a strong municipal tax base is attracting, supporting and retaining businesses in towns and cities.

More than 90 percent of New Hampshire's businesses employ 100 or fewer people. As important as it is to attract large employers to our state, it is also important to nurture existing small businesses, helping them grow, remain strong and create jobs.

This is the function of the Capital Regional Development Council. We do our work across the state, but as an example, let's focus on our relationship with the Concord Co-op, which recently expanded on South Main Street.

The co-op, a natural foods market, needed a new and larger store to meet the demands of members and shoppers. Despite public enthusiasm for the project, the store's expansion required a great deal of capital to improve the new space the co-op intended to lease.

Conventional financing institutions were reluctant to invest in a building not owned by the borrower. This is where the Capital Region Development Council stepped in. Because traditional loan programs require collateral as leverage against the loan, the council needed to act creatively to help the co-op realize its full potential.

CRDC applied for a community development block grant on behalf of Merrimack County. When the county won the grant, it in turn granted the money to the CRDC, which lent it to the co-op.

The Concord Co-op's renovation project more than tripled the size of the market from 2,000 to 6,800 square feet. The co-op now offers a ready-made foods section, a deli counter and more space so that customers can shop comfortably.

The extended benefits to the community also include 15 new permanent jobs.

Success stories like the co-op's are not uncommon. The Capital Region Development Council has used financial and community assistance programs to help create and retain more than 5,000 jobs and trigger $700 million in private investment in New Hampshire businesses and communities. The council's services include support through all phases of the project, from planning and production to promotion.

CRDC money has been used to revitalize a community's business district, expand exports, expand minority enterprise development, aid rural development, increase productivity and competitiveness, modernize or upgrade facilities to meet health, safety and environmental requirements and assist businesses in or moving to areas affected by federal budget reductions.

The council encourages small businesses and municipalities to learn more about its services by visiting crdc-nh.com on the web or calling 228-1872.

(Niel Cannon is executive director of the Capital Regional Development Council.)

Back