University researchers may have the answer for U.S. businesses that were growing but have been thwarted by lack of access to capital.
A three-month research project by the University of Denver’s Daniels College of Business and Leeds School of Business at the University of Colorado-Boulder shows that a program called the Incentivize Success Plan would motivate successful companies to expand their businesses and hire/retrain laid-off workers.
However, the plan is not a bail-out for struggling companies.
It is designed to help grow businesses with less than 500 employees gain access to capital.
The plan would have three components: low-interest government-guaranteed loans, 1 percent rate discount on borrowing rates, and a tax credit for retraining U.S. workers.
Research included the administration, design, costs and benefits associated with such a plan, and whether there is a tangible need for it.
Leeds and Daniels researchers reached the following conclusions:
Researchers expect that phase two of the project will provide “actionable research for policy makers” at a critical time for the economy.