Rep. Jim Walsh appeared before the House Technology and Economic Development Committee on Wednesday morning to testify on behalf of the Washington Rural Jobs Act. House Bill 1422, jointly sponsored by Walsh and his seatmate, Rep. Brian Blake, aims to spur economic development and job growth in rural areas.

“Many small businesses get started, but then run into difficulty getting enough capital to go tothe next level,” said Walsh. “Whether it is moving into a bigger facility, buying more equipment or hiring more employees, finding financing can be a problem. This bill specifically targets that stage of development.”

Currently, the United States Department of Agriculture has a Rural Investment Program to help promote rural economic development. Walsh’s bill would create additional state tax incentives, which would be channeled into financing small business growth in rural areas. Also, a non-refundable tax credit would be given to business lenders making eligible contributions to rural economic growth. The tax credit could be applicable to business and occupation taxes, insurance premiums or retaliatory taxes.

“We need more players willing to provide funding,” continued Walsh. “These aren’t always start-up loans. The financing we are talking about is more often for small companies, already up and running, looking for growth capital. This kind of loan could take a business from four to five employees to 15 to 20. I don’t normally support tax preferences, but we need this market to open up.”

Walsh says there is solid bipartisan support for the bill.