Committee hears small-business package: training, resource platform, SBDC and equity-focused support

The Economic Development, Housing & General Affairs Committee met Wednesday, Feb. 26, to review provisions in a draft economic development bill and to hear testimony from statewide small‑business support organizations on proposals to expand training eligibility, add a searchable resource platform and increase funding and coordination for technical assistance.

The proposals are intended to expand capacity for firms with fewer than 20 employees — a sector presenters said represents the majority of Vermont businesses — and to reduce information and access barriers faced by women, BIPOC and other historically excluded entrepreneurs.

Why it matters: Testimony from five statewide providers framed the bill language as a package of near‑term asks (one‑time and base funding) and longer‑term topics (access to capital and a possible conference/performance venue). Presenters said better coordination and modest funding increases would allow existing programs to serve more firms and to link business advising with capital and training resources.

Ellen Kaylor, executive director of the Vermont Sustainable Jobs Fund, told the committee that the package grows out of a January “Small Business Wednesday” listening session and a subsequent concept paper. "We have an incredible array of highly skilled, experienced business and technical assistance providers in the state," Kaylor said, and "they are woefully under resourced based on the level of need from the small business community." She cited the statistic discussed in testimony that roughly 93% of Vermont's small businesses have fewer than 20 employees.

Kaylor and other presenters urged a statutory clarification to let owners of businesses with 20 or fewer employees qualify as trainees under the Vermont Training Program so organizations that provide executive coaching and strategic planning can use training funds for owners as well as rank‑and‑file employees. She explained that small business owners often "work in the business alongside their workers" and that existing statute has created uncertainty about whether owner draws or strategic planning qualify as training. The statute's livable‑wage verification, she said, currently uses the Joint Fiscal Office's livable‑wage report as the threshold.

Mieka Luzeki, representing a Women+ small business collaborative, proposed a Vermont Small Business Resource Platform: a three‑part product (an annual print “kit,” a searchable website and an AI‑assisted chat tool) to aggregate workshops, grants, mentors and contact points across service providers. "Only 2% have used the business resources that are available in our state," Luzeki said, summarizing survey results that underlay the proposal and arguing the platform would increase resource utilization and equity of access.

Linda Razzi, state director of the Vermont Small Business Development Center (SBDC), requested an increase in state support to expand advising capacity. She said the SBDC currently has about 6.5 full‑time‑equivalent business advisors, served 531 Vermonters last year with an average of about six hours per client, and needs additional recurring funding to serve roughly 200 more clients through confidential, no‑fee advising. Razzi described the SBDC's federal‑state match requirement and said the center measures outcomes (capital raised, jobs created, new businesses) by client verification.

Nicole Coloren, director of the Vermont Small Business Law Center at Vermont Law and Graduate School, described legal services and a referral program that provides up to 10 hours of free legal assistance via a Vermont Bar Association panel. She reported 288 intakes and 149 consultations in 2024 and said the center's current federal grant expires next June; the center is requesting $300,000 in state support to sustain and scale service and to enable matching grants.

Weiwei Wong, co‑executive director of the Vermont Professions of Color Network, said the group's $250,000 two‑year contract (now ending) supported technical assistance and resource navigation for BIPOC‑owned firms. Wong said the contractor served roughly 35 new business owners annually under that contract and requested $350,000 in the draft to continue and expand navigation and outreach. She emphasized survey findings showing 25% of business owners who used public services reported experiencing bias.

Committee discussion also touched on two proposed task forces in the draft bill: one to study access to capital for startups and early stage firms (to include lenders, the Vermont Economic Development Authority and other capital providers) and a second to study options for a conference/performance venue. Committee members and presenters discussed the value of convening lenders, angel and flexible‑capital providers and education organizations to identify gaps and possible state roles.

No formal votes were taken during the testimony. Committee members asked presenters for follow‑up materials, including state‑by‑state SBDC match comparisons and survey results referenced during testimony.

What's next: The committee chair said the bill draft will be discussed by staff and the committee's legislative counsel, and presenters indicated willingness to return with more detail after crossover and as related workforce and education funding conversations progress.

Ending: Presenters and committee members repeatedly framed the request as incremental: fund and coordinate existing programs rather than create a new statewide bureaucracy. Several witnesses asked the committee to focus on clarifying eligibility and on modest recurring state funding to leverage federal dollars and local partnerships.