At Darn Tough Vermont, which is expanding and adding 300 full-time positions in the next five years, Governor Peter Shumlin today signed an economic development bill that will give a boost to Vermont’s growing economy by increasing access to capital for startup business, expanding proven incentives to grow jobs, and encouraging job seekers to come to Vermont. Based in Northfield, Darn Tough is famous for making high-end recreational socks that are guaranteed for life.
“Vermont is a great place to live, work, and raise a family,” Shumlin said. “This legislation will help us build on the job growth we have seen in recent years, spur businesses to innovate the next big thing right here at home, train Vermonters for the jobs we have, and attract those from out of state to fill the jobs employers are continuing to create.”
The governor signed the bill one week after Vermont’s unemployment rate dropped to 3.6 percent, the fourth lowest rate in America. According to the Department of Labor (DOL) data released last week, Vermont’s low unemployment rate is matched by strong job growth. March saw stronger job growth than initially reported and initial data for April showed an increase of 1,800 jobs in the last month and an increase of over 7,000 jobs from a year ago. Since the Governor took office in January 2011, Vermont has added 16,800 jobs, according to DOL data.
The bill, S138, builds on that job growth in a number of ways, including:
Expanding job creation incentives
Changes to the Vermont Economic Growth Incentive (VEGI) will make it easier for businesses in parts of the state with higher unemployment to access this award winning program and invest in employee training. In the eight years since the program was launched, companies approved for VEGI have created 3,038 new, full-time jobs, added $187 million in new payroll, and made $495 million in capital investments in Vermont.
Increasing access to capital for startups
Increased limits on non-licensed lending will allow people to lend in amounts up to $250,000 without having to be a licensed bank or financial institution, giving startup businesses additional options for raising capital.The previous limit on non-licensed lending was $75,000.
Housing incentives for first time homebuyers
A first time home buyer down payment assistance program will help employers attract and retain talent and help first time home buyers put down roots in Vermont. To help renters and those new to Vermont build assets and establish roots in Vermont, the program will make available up to $5,000 for the purchase of a home to those who meet lending guidelines. The money would be repaid upon the sale of the home.
Encouraging Vermont’s emerging tech companies
Vermont is an emerging tech hub and eliminating the cloud tax sends a strong signal that Vermont is a tech friendly state in which to locate and grow a tech business.
Attracting workers to Vermont
An additional $200,000 will be made available specifically for economic development marketing designed to help tell the Vermont story and recruit labor talent, businesses, and entrepreneurs to the state. An additional $100,000 will be targeted on recruiting businesses north of the border to locate in Vermont.
S.138 would not have been possible without the hard work of the House Commerce Committee and Senate Economic Development Committee, chaired by Rep. Bill Botzow and Sen. Kevin Mullin, respectively. House Speaker Shap Smith and Senate President Pro Tem John Campbell also championed the legislation.
“Vermont is acknowledged for its quality of life and natural beauty,” said Speaker Shap Smith. “Vermont employers also recognize the quality of our skilled workforce. This bill seeks to strengthen our workforce, invest in employers, and market our strengths throughout the country. By providing new tools to grow our economy and attract businesses, we remind our neighbors that Vermont is ready for the 21st century.”
The Governor signed S.138 at Darn Tough Socks in Northfield, a Vermont-grown company that has utilized the VEGI program and will soon break ground on a 100,000 square foot mill expansion that will add 150 employees over the next three years, creating an additional 300 full-time positions by 2020.
In April, the Governor stood with Darn Tough and 13 other Vermont companies to highlight over 700 current full-time job openings. Those are just a few of the open jobs in Vermont. A Department of Labor analysis of online job posting data as of January 2015 found that there are 6,774 industry classified job postings in Vermont. Over 50 percent of these online postings are found in health care and social assistance; retail trade; and educational services. Another 20 percent of the online job postings are in finance and insurance; manufacturing; public administration; and professional, scientific, and technical services. While this data includes many Vermont employers, it is not comprehensive as not all Vermont employers post jobs online, and in some cases jobs are posted on other sites.