Doing It Correctly.

During my past few blogs I've been very critical of Senate Bill 30 and the very idea of using a state loan guarantee to finance what I think is an overly ambitious, unprecedented project at the Balsams. I'm also discouraged by the politics that surrounds this whole idea whether this is elected officials like Gov. Hassan, Sen. Jeff Woodburn or appointed officials like DRED Commissioner Rose.

Bad idea. Bad politics.

I'm actually of a supporter of state loan guarantees done by the Business Finance Authority, provided they are done correctly.

An example which just happened just recently. The Executive Council approved a "state loan guarantee" for Tender Corporation in Littleton, NH so that they may expand and create at least 10 full-time new jobs. This is an example of how it was done correctly. I don't have the contract in hand but I'm of the belief it is for no more than five million dollars. $5,000,000.00. Tender Corp. Manfacters Insect Repellent. New Hampshire Got This One Right. The Balsam's Project Should Be Scrapped.

This is an established business that makes insect repellent. I'm sure this established business has over $50 million in capitalization, equipment and accounts receivable that could be used to pay the loan, if there was a default. New Hampshire is doing a good thing here. They are supporting a local business to expand and create new jobs, while not exposing the taxpayer to any risk if the project does not go well.

Now compare this loan with the Balsam's as stated in Senate Bill 30.

See what I mean about the bad politics?