COURTESY
MANCHESTER — The Regional Economic Development Center on Friday announced the creation of the state’s first microloan fund specifically for new Americans, also called first-generation immigrants.
The event was attended by government officials and community members. The New Hampshire New Americans Loan Fund, which was created following a pilot program in partnership with the Welcoming Concord Initiative, will encourage business development and job creation for the state’s immigrants through microlending and technical assistance.
“Through our work, we have seen the need for alternative funding sources in the immigrant community,” said Laurel Adams, development center president. “First-generation immigrants are a true resource for the state; attracting new Americans and keeping them in New Hampshire can increase the state’s diversity, grow our economy and mitigate our labor shortage.
To keep them here, we need to help new Americans achieve the American dream of owning a business,” Adams said. “We want to extend a hand to our newest residents, and that’s exactly what the New Hampshire New Americans Loan Fund can do.”
The fund will provide microloans, which are small-business loans for $50,000 or less with reasonable interest rates. Those who typically apply for don’t have the necessary history or accounting paperwork to secure a bank loan, so they are forced to look for funding elsewhere. That can be a potential barrier for many who are looking to start or grow a business. Throughout the life of the microloan, experts will provide technical assistance in areas such as accounting and bookkeeping, website management and marketing, and work with loan recipients to help them put processes in place to ensure they can qualify for bank loans in the future.
“For New Hampshire to have a vibrant future and a sustainable and healthy economy and communities, it must open its doors and support new Americans that bring new ideas and new energy and want to invest in our state,” said Will Arvelo, Director, New Hampshire Division of Economic Development. “The influx of new people with new ideas and passion is what keeps America going strong. The New Hampshire New Americans Loan Fund sends a message to this population that says, ‘We appreciate what you bring, and we want you in New Hampshire’ and is a tool that begins to open the doors to economic and business opportunities.”
With extremely low unemployment rates, an aging workforce and many native young adults moving away, engaging foreign-born residents, who are typically younger than the state’s native population and often well educated, can help reduce labor shortages and grow the economy.
“Manchester is proud to be the home of thousands of new Americans from diverse backgrounds,” said Manchester Mayor Joyce Craig. “The New Hampshire New Americans Loan Fund presents an exciting opportunity for our residents who are first-generation immigrants and currently own a business or dream of starting one. The Fund will not only provide training and funding, it will enable businesses to flourish and create more jobs in our community.”
The center has been working with the new American population for many years through its other microloan programs. By helping them with funding and technical assistance, the organization saw the need first-hand for additional resources and funding.
“Starting my business in New Hampshire has helped me become a part of the community and I wouldn’t have been able to start and grow my business without the REDC microloan program,” said Tika Acharya, owner of AS Insurance in Manchester and REDC microloan recipient.
“With REDC’s assistance, I was able to grow my business to more than 1,000 clients,” Acharya said. “Our staff is bilingual and bicultural, so we are filling a vital need in the community by helping those with language barriers or who come from different backgrounds. New Hampshire New Americans Loan Fund can help other first-generation immigrants start a business with training and funding, so they too can put down roots and contribute to the community.”
First-generation immigrants are a growing population in New Hampshire. In 2015, the state had more than 75,000 foreign-born residents. From 2010 to 2015, more than 5,000 residents left the state but more than 10,000 international residents moved to New Hampshire.
“I’m very pleased that the New Americans Loan Fund will help fuel the success of New Hampshire businesses,” said Sen. Jeanne Shaheen, D-N.H., who was unable to attend the event. “By launching this program, the Regional Economic Development Center will create opportunities for first-generation Granite Staters to build successful businesses and contribute to our local economy. This financing will provide economic support for the region for years to come.”
To apply for a microloan, prospective applicants will meet with an development center business adviser, develop or refine a business plan, fill out an application and share financial documents — including tax returns, personal financial statements and projections. Staffers guide applicants through the process and provide translators if needed. The application process can take anywhere from two to six weeks. Those who are interested in learning more about the application process can visit https://www.redc.com/newamericanloanfund for more information.
The center anticipates receiving several applications and granting six to eight loans in the fund’s first year. And while the fund has the means to start reviewing and funding applicants immediately, the center plans to expand the fund to $2 million through business and personal donations and government resources.
Currently, the center is working with the state to secure participation in the CDFA Tax Credit Program, also called the Community Development Investment Program, which allows businesses to receive 75 percent of an eligible charitable contribution back in the form of a state business tax credit. REDC expects to receive final approval and to begin accepting these types of contributions in mid-June. Those interested in learning more about the tax credit program can visit www.redc.com/donate.
The organization, with financial support from the Endowment for Health, is also preparing for a market study to quantify the size and diversity of the new American population in the state. The study will also measure the projected demands for programs like the loan fund and determine the best avenues to reach the state’s new Americans.
As your daily newspaper, we are committed to providing you with important local news coverage for Sullivan County and the surrounding areas.