Issue link: https://nebusinessmedia.uberflip.com/i/1490302
8 HARTFORDBUSINESS.COM | JANUARY 23, 2023 ON THE RECORD | Q&A Congratulations Congratulations TO ALL TO ALL CONNECTICUT EAGLE AWARDEES CONNECTICUT EAGLE AWARDEES 7(a) LOAN LENDER OF THE YEAR Webster Bank 504 LOAN 3RD PARTY LENDER OF THE YEAR Webster Bank EXPORT LOAN LENDER OF THE YEAR Berkshire Bank CREDIT UNION OF THE YEAR Nutmeg Federal Credit Union COMMUNITY ADVANTAGE LENDER OF THE YEAR Community Investment Corporation LENDER WITH ASSETS UNDER $500 MILLION 7(a) LOAN LENDER OF THE YEAR Jewett City Savings Bank 504 LOAN HIGHEST LOAN NUMBER VOLUME Community Investment Corporation 504 LOAN HIGHEST LOAN DOLLAR VOLUME New England Certified Development Corporation MICROLOAN LENDER OF THE YEAR The Community Economic Development Fund A Special Thank-you to our Patrons A Special Thank-you to our Patrons BERKSHIRE BANK • CIC – COMMUNITY INVESTMENT CORPORATION CEDF – COMMUNITY ECONOMIC DEVELOPMENT FUND • JEWETT CITY SAVINGS BANK NUTMEG FEDERAL CREDIT UNION • WEBSTER BANK Whether you dream of transforming your business idea into a thriving company, growing your customer base, or expanding into new markets or locations, the SBA is here for you. We offer programs, expertise, and access to capital that will empower you to take your small business to the next level of success. Visit SBA.gov to learn how you can move your business forward with confidence. Small businesses power our economy. The small Whether you dream of transforming your business idea into a thriving company, growing your customer base, or expanding into new markets or locations, the SBA is here for you. We offer programs, expertise, and access to capital that will empower you to take your small business to the next level of success. Stop by your local SBA office or visit SBA.gov to learn how you can move your business forward with confidence. Small businesses power our economy. The SBA powers small businesses. Whether you dream of transforming your business idea into a thriving company, growing your customer base, or expanding into new markets or locations, the SBA is here for you. We offer programs, expertise, and access to capital that will empower you to take your small business to the next level of success. Stop by your local SBA office or visit SBA.gov to learn how you can move your business forward with confidence. Q. Several business groups have been lobbying for an expansion of the R&D tax credit to pass- through entities in hopes it will spur innovation investment by smaller manufacturers and bioscience companies. Will the Commerce Committee consider that bill? A. We've actually tasked the Depart- ment of Economic and Community Development (DECD) to do some modeling on that to assess the impact, and we should be getting that information back soon. We currently have the R&D tax credit available for C-corporations, but we're hearing from a lot of entities, especially smaller biosci- ence companies, that this would be an incredible draw for pass-through entities as well. We've asked DECD to model out what the revenue loss would be to the state and the overall impact it would have. (DECD had not completed its analysis of expanding the R&D tax credit to pass-through entities as of Jan. 11, according to an agency spokesperson.) Q. What about the workforce shortage? Connecticut employers reported over 100,000 job open- ings throughout most of 2022. The state has allocated tens of millions of dollars for workforce development programs, including the $70-million CareerConneCT program, which offers free job training in high-demand indus- tries and promises to graduate workers quickly for immediately available jobs. Is there anything more the legis- lature needs to do to address the workforce shortage? A. We know that Connecticut's workforce has shrunk. It's happened nationally as well. But women in the workforce have taken the biggest hit. Previously, they made up more than half of the workforce. They are well below that level now, and obviously COVID had a really big impact there. Part of it was child care so we are looking at ways to try to incentivize to build that part of the workforce back up again. Q. You mentioned the state needs to broaden its apprenticeship programs. Can you elaborate on that? A. I want to look at our apprentice- ship programs because the world is changing. We have traditionally had apprenticeships in welding, plumbing and for electricians. Those are very important and we need to continue to grow those pipelines. But we are in a different place right now with emerging industries and jobs, like mechatronics, (which are skills — including mechanics, electronics and computing — needed in the advanced automated manufacturing industry). That's a whole new sector and we should be building apprenticeships in those kinds of emerging fields and trades, including maybe software. Q. The Lamont administration's Department of Economic and Community Development has shifted its incentives strategy, moving away from upfront grants and loans to businesses to a system that rewards certain companies with tax rebates after they've added at least 25 jobs. Is that a policy you support? A. It's a totally new model, which I subscribe to, but we are going to look at the outcome and see how it is going. The other big focus of mine has been supporting women- and minority-owned businesses. We have not been where we should, historically, on this, so we are going to continue to focus on how we can support them. We're operating in this world where we have really changed our fiscal profile, we are now recognized as one of the fiscally sound states. It gives us this opportunity to try to work on and invest in our priorities, but it's got to be done very prudently, not just throwing money at things. Q. There's a lot of vacant office space in Hartford and other major urban and even suburban centers. Does the state legislature have a role in helping cities and towns figure out what to do with vacant office space? A. This is a big challenge and it is not off of our radar. What has happened in some communities, like Hartford and Waterbury, they have taken (federal stimulus) money and used it to incentivize landlords in core business districts to fit out locations for new businesses, to attract feet on the street and try to bring back vibrancy into the downtown areas. Having said that, there are other opportunities, so the Commerce Committee is going to try to identify, be supportive of, promote, and quite frankly, be the facilitator to come up with solutions. But government can't do everything (in terms of providing financial incen- tives). It's always been my position that we can be the facilitator to help lay the groundwork.