Worcester Business Journal

wbjournal.com | March 29, 2021 | Worcester Business Journal 25 Spending the state's rescue money wisely V I E W P O I N T E D I T O R I A L T he first federal coronavirus relief plan – the $2.2-trillion CARES Act from March 2020 – provided much- needed calm in the early phases of the coronavirus pandemic. e law's Paycheck Protection Program was particularly helpful to businesses, infusing capital stability during an unstable economic time. e second relief plan – the $900-million Consolidated Appropriations Act from December – threw more funding to the CARES programs, including a second round of PPP focused on smaller businesses. e latest relief plan – the $1.9-trillion American Rescue Plan, signed into law on March 11 – seeks to systematically address many of the weaknesses in American society exposed by the coronavirus pandemic, focusing on poverty, health care, infrastructure, including transit, and a new $10-billion small business credit program. Oh, and $1,400 stimulus checks are going out to 85% of Americans. e spigot has been turned on and record amounts of government money is flowing through the economy. e question now becomes: What do we do with all this money? Aside from direct payments to residents and private organizations, Massachusetts governments will receive $3 billion. e intention is to make up for lost revenue, boost businesses, and fund infrastructure. e slice for Central Mass. includes $151 million for Worcester, $33 million for Fitchburg, $28 million for Framingham, $20 million for Leominster, $12 million for Marlborough, and $9 million for Milford. While local governments certainly have been challenged economically during the pandemic, the bulk of their budgets remain based on property taxes, so it wouldn't seem at first blush that lost revenue for many communities is a major issue. at leaves businesses and infrastructure among the priorities. In Worcester, many businesses have been hurting, particularly small businesses in the hospitality industry and those serving low-income neighborhoods. In this vein, the American Rescue Plan's $10-billion State Small Business Credit Initiative will help, as it provides money for states to access to capital for those who struggle to find such financing, particularly enterprises owned by women and people of color, and those with 10 or fewer employees. is certainly will help, but cities like Worcester already know many of the needs of their small businesses, and should offer incentive programs for initiatives like rental assistance, building renovations/rehabilitations, and employee training. On infrastructure, local governments have long to-do lists for roads, bridges, and enhanced transit routes. is is likely the time for the Worcester Regional Transit Authority to permanently adopt a fare-free program, as studies such as those by the Worcester Regional Research Bureau have shown a dramatic benefit to disadvantaged populations and the businesses where they work, all at a minimal cost. e process of deciding where these funds go needs to be a thorough and transparent process, one that assures our businesses can make it through the pandemic intact, and all our citizens can bask in the light at the end of the tunnel. The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. Worcester de-risked I n venture capital, there is a major focus on de-risking a company to the point where an investor feels comfort- able putting money in. is process usually involves developing a prototype, building an experienced team, generating data to support claims, and outlining a go-to- market strategy. Applying this model to Worcester, it is clear Worcester has been de-risked as a location for startups. Worcester has a phenomenal prototype for success. Worcester has access to the infrastructure required for startup companies to succeed. Our colleges and universities offer access to equipment, innovation, and a constant flow of new talent. Worcester has an educated workforce of talent to fuel growth. Video conferencing has broken down barriers and brought Worcester closer than ever to our major capital centers in Boston and New York. Investors place bets on teams, not technologies, and Worcester has a great team. Worcester has more than 20 startup-focused organizations. e city has a wide array of incubators, mentoring programs, and support infra- structure to launch a company. ose support agencies are reaching new heights. e Venture Forum launched a mentoring program, and Massachusetts Biomedical Initiatives has created two new business support programs to help entrepreneurs succeed. Worcester is said to possess the collaborative gene and is a place where people work together to get things done. e model has data. Companies are thriving in the city. Nearly 30 years ago, AbbVie (then BASF) placed a bet on Worcester. Since then, Abbvie's Worcester team has developed Humira, the world's largest selling biologic, and brought RinVoq to the market. MustangBio chose Worcester and has grown from two employees to more than 50 in the city on a mission to cure cancer. Biomere now employs more than 100 in the city with plans to grow aer an acquisition by JOINN Biologics of California. Last year, WuXi Biologics broke ground on a $60-million investment to employ more than 150 here in the city. At MBI, we opened our new facility in August. e site doubled our capacity to support early-stage companies and has already surpassed 70% occupancy with extremely talented companies. In November, MBI company iVexSol secured a $13-million Series A financing round to fuel its growth. Leveragen, also at MBI, secured a $3-million seed round and has grown its team from one to seven employees. Even the Worcester Red Sox chose Worcester and plan to play ball at a new stadium in the spring. Worcester has a go-to-market strategy for success. By continuing to focus on creating the space and resources companies need to succeed, Worcester is helping companies launch, scale, network, and access capital. For entrepreneurs looking for an environment to launch their next venture, Worcester is de-risked. Jon Weaver is president & CEO of Worcester incubator Massachusetts Biomedical Initiatives. BY JON WEAVER Special to the Worcester Business Journal Jon Weaver W W A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L

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