Senate’s S.122 would boost small-business supports, expand trade offices and create new trade, venue and capital studies

Sen. Allison Clarkson, chair of the Senate Committee on Economic Development, said on April 16 that S.122, the Senate’s economic development bill, would increase a downtown and village tax credit, add funding for multiple small-business support programs, expand international trade work and set up new commissions and study groups.

The bill would raise the statutory annual cap for the downtown and village tax credit from $3,000,000 to $5,000,000 and includes line items — contingent on appropriation — for legal, advising and outreach programs aimed at Vermont’s small businesses. Clarkson described the bill as “heavily inspired by our Small Business Wednesday,” a January convening of lenders, business-support organizations and lawmakers, and urged the House Commerce & Economic Development Committee to consider the proposal and its tasks.

S.122 packages a number of targeted requests and programs. It seeks additional state funding for: the Vermont Small Business Development Center (SBDC); the Vermont Small Business Law Center at Vermont Law & Graduate School; the Vermont Professionals of Color Network (BTPOC); a microbusiness program; a film and media resource guide; outdoor recreation workforce and training; and an expanded international trade office and relationships with Quebec, Asia and Europe. The bill also would create a Vermont–Ireland Trade Commission, authorize fundraising and reporting rules for that commission, and ask the Agency of Commerce and Community Development (ACCD) to study access to capital. It would also create a task force to study feasibility of a convention center and a major performance venue.

Several presenters told the committee that the proposed state funding targets programs that currently rely on a mix of federal grants, contracts and modest base state support. Linda Rossi, state director of the Vermont Small Business Development Center, told the committee the SBDC’s current annual federal base is about $777,000 and state support is $388,889, and that a requested $300,000 increase “would have transformational impact for small business owners” by enabling roughly 200 more one-on-one advising engagements. Rossi said last year the SBDC served 531 clients, started 25 new businesses, created or retained 239 jobs and helped secure more than $10 million in capital for Vermont firms.

Koka Warren, director of the Vermont Small Business Law Center at Vermont Law & Graduate School, described the center’s model of providing legal education, a reduced-fee attorney referral panel and short-term legal services; the center has used a congressionally directed spending grant and other limited contracts and told the committee it seeks supplemental state support to meet rising demand. Weiwei Wong, co-executive director of the Vermont Professionals of Color Network, asked for $350,000 in one-time funds to sustain outreach, a business-technical-assistance coordinator and improved evaluation and translation for immigrant and BIPOC business owners; the governor’s budget included $250,000 for the group.

Nyako (Nikko) Ozeki described a proposed Vermont Small Business Resource Platform (a $100,000 one-time request in S.122) that would compile a statewide “kit” publication, an interactive website and an AI-enabled search/matching function to help entrepreneurs find services from the many state and nonprofit providers. Ellen Taylor of the Vermont Sustainable Jobs Fund and others indicated they would serve as fiscal and administrative partners if the appropriation is approved.

Rick Seigel, Office of Legislative Counsel, advised the committee that many of the bill’s dollar figures and program lines — including the downtown tax credit increase, the trade office expansion and multiple program grants — are “contingent upon appropriations.” He also described structural details of the Vermont–Ireland Trade Commission language, which would create a seven-member panel appointed by the governor, House and Senate leaders and the state treasurer or designee; the commission could accept donations and is required to file an annual report, including disclosures of in-kind contributions.

On governance and timing, Seigel said the Trade Commission’s first appointments should be made by Oct. 1, 2025, and the statute includes a future repeal date of June 30, 2030, so the General Assembly would review whether to continue it. He also noted that per diem pay for members was removed during Senate appropriations, leaving commission participants unpaid unless outside fundraising is used to cover administrative costs under the treasurer’s oversight.

On studies and task forces, the bill asks ACCD to prepare a study on access to capital with a report due Nov. 1, and it creates a task force to examine the feasibility, infrastructure needs and financing options for a convention center and a major performance venue. Clarkson said her Senate committee approved that task force by a 4–1 vote and recommended the House committee consider how it wants to proceed. Seigel said the convention-center task force would hold its first meeting by July 15, 2025, provide an interim report Nov. 1, 2025, and a final report by Nov. 1, 2026, and that the task force would cease on Dec. 1, 2026.

Several presenters and committee members raised related issues during questioning: lenders and business-support groups urged the committee to consider a centralized clearinghouse for tariff and trade information after testimony earlier in the week about tariffs; speakers pressed for task-force membership and consultation with regional development and planning entities for any site and infrastructure studies; and multiple witnesses emphasized that much of the bill’s impact would depend on appropriations that had not yet been finalized.

No formal House committee vote on S.122 was recorded during the April 16 hearing. Committee staff and witnesses said parts of the bill had already passed the Senate and that appropriations and some technical language remain subject to further negotiation in House committees and the Appropriations process.

Ending details: the bill’s appropriations are explicitly contingent on action in the FY2026 budget process; the bill carries multiple reporting deadlines and sunset language intended to force future legislative review; and sponsors urged the House committee to solicit testimony from ACCD, the SBDC, legal clinics and small-business coalitions before finalizing funding or structural changes.