Gorman Plan Will Assist Struggling Small Businesses

Encouraging and rewarding the state’s small businesses for purchases they make locally is one way to help stimulate Rhode Island’s stagnant economy, according to state Senate candidate Dave Gorman.

Gorman, the endorsed Democratic candidate for District 33, representing Coventry, East Greenwich and West Greenwich, say his plan will help struggling small businesses throughout Rhode Island.

“We must stop the hemorrhaging before we can do anything else,” Gorman said.

His years of small business experience have allowed him to truly understand what struggling Rhode Island businesses need, and that Gorman says, is money. “If Rhode businesses can ban together and support each other, we will dig ourselves out of this hole."

“What I envision is a voluntarily participation in a vendor partnership between each Rhode Island business and with the assistance and incentives from the State of Rhode Island we would all work together to grow this state,” Gorman said. He explained that if a Rhode Island business elected to participate in the program, they would first need to sign up with the state. After enrolling, businesses would buy as many of their supplies, equipment, or raw materials from another local Rhode Island vendor as possible. At the end of the year, when the business files its tax return, it would also file a form that would document the purchases made here in Rhode Island. In a few short weeks that business will receive a rebate check, not a tax credit, but an actual check that can be cashed and sent back into the economy again.

Gorman said this incentive would work on many levels. “My plan will make Rhode Island businesses stronger by providing the much needed cash flow to one another. If you purchase over the state borders or over the Internet or overseas, then Rhode Island loses out on much needed sales tax revenue. By incentivizing or enticing businesses to purchase from one another locally, we will keep that revenue stream right here in our state. The increased sales and revenue to local businesses could mean the difference whether local businesses hand out layoff notices in December or holiday bonuses.”

Gorman says he believes that funding for his plan is already in the state budget. He said the needed funds could be used from the economic development line item, as well as the additional tax revenue that the plan itself would generate.

“If we can give Curt Schilling millions with no questions asked, than we can give the struggling mom and pop shop on Main Street thousands. To me it’s a win-win for all,” Gorman said.