On episode 24 of Granite Goodness, Andy visits James at the offices of the New Hampshire Business Finance Authority. While sitting at the longest table Andy has ever seen, the two discuss.
The Mission at BFA: The New Hampshire Business Finance Authority (BFA) makes capital and credit accessible to local businesses, fostering economic stability across the state.
BFA’s Community-Focused Approach: Inspired by how small businesses can revitalize struggling towns, James emphasizes supporting local entrepreneurs in his work.
BFA’s Unique Lending Program: The Capital Access Program (CAP) supports small loans for startups, creating a self-sustaining loan pool without taxpayer funding.
New Hampshire’s Business Advantage: With low taxes and highly accessible officials, New Hampshire offers a supportive environment for businesses, attracting attention from other states.
Optimism For NH: NH consistently has one of the lowest state poverty rates in the nation, continues to attract talented entrepreneurs, and overall is experiencing a robustly healthy economy.
James Key-Wallace is the Executive Director of the New Hampshire Business Finance Authority, where he helps to expand access to credit and capital for entrepreneurs and small businesses across the state.
Links & Notes:
New Hampshire Business Finance Authority (NHBFA)
Music provided by Sneaky Miles
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New Hampshire Business Finance Authority
AI Generated Episode Summary*
What first inspired you to help businesses?
I was drawn to stories of struggling towns revitalizing through local businesses. The idea that creating a place people wanted to visit could drive a town’s entire recovery—from job creation to income growth—motivated me to support community businesses that fuel economic vitality.
Can you tell us about your role at the New Hampshire Business Finance Authority (BFA)?
At BFA, we work to make capital and credit accessible to New Hampshire entrepreneurs. Our mission includes supporting small and large businesses and nonprofits alike, ensuring credit remains available even in economic downturns to avoid negative cycles of tightened credit and worsened economies.
How does your farming background influence your perspective?
Working on a farm taught me that everything has its foundations, like a plant needing good soil. Similarly, New Hampshire’s “soil”—its supportive business environment—is rich, with low poverty rates and high education. This foundation allows our state to thrive without extreme measures like offering massive financial incentives to businesses.
What do you think sets New Hampshire apart for businesses?
New Hampshire has a low tax burden that’s conducive to business growth, alongside a highly accessible government. Here, you can call your senator directly, which builds a strong, close-knit community and an environment where businesses feel supported.
How does the BFA’s Capital Access Program (CAP) work?
CAP is a unique loan support system that helps small businesses secure loans. Banks and BFA contribute to a fund at each participating bank, creating a safety net. When businesses face challenges repaying, the bank can draw from this fund, reducing risk and encouraging them to make more loans to smaller, newer businesses.
What are some examples of businesses CAP has supported?
We’ve helped fund everything from surf shops to coffee houses. CAP has supported thousands of small businesses across New Hampshire, from first-time entrepreneurs needing $50,000 to more established companies. It’s a highly impactful program, helping community staples and fostering local growth.
How does the BFA manage funding without taxpayer support?
We’re what’s called an “independent state agency.” CAP is self-sustaining through interest generated by the pooled funds we contribute to, which means we can support local businesses without relying on taxpayer money. This model is very “New Hampshire”—self-sustained, nimble, and efficient.
Does New Hampshire’s business environment attract attention from other states?
Yes, other states frequently ask how we do it. Despite our small size and limited incentives, New Hampshire’s accessible government and low tax environment make it an attractive place for businesses to grow. Companies choose to come here because it benefits them, not because we’re paying them to be here.
What challenges are New Hampshire businesses facing right now?
Inflation is affecting everyone, especially in essentials like housing, childcare, and transportation. We’re seeing strain among lower-income communities and smaller businesses, who bear the brunt of price increases. While the economy is generally strong, inflation pressures affect different groups differently.
Why is it important to you to support small businesses?
Businesses are made up of people trying to make a positive impact in their communities. Supporting them allows me to work on what I value: fostering spaces where people thrive, building community wealth, and ensuring that business can be a powerful force for the common good.
*This episode summary was generated by an AI analyzing a transcript of the interview. The questions, wording, and written meaning of particular sections may contain slight differences to the original conversation. We include these summaries to give listeners a brief, readable synopsis of the episode. The full episode transcript is available on granitegoodness.com.
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