| PROVIDENCE, RI — RIBBA recognizes the conclusion of the state legislative session, marking the passage of several top legislative priorities that support minority small businesses and work towards improving the economic well-being of underserved communities. However, despite billions of dollars being poured into construction and infrastructure projects across the state, our communities are consistently overlooked. These investments rarely translate into tangible benefits for those who need them the most, instead they widen the economic divide. Entrepreneurs and business owners rely on RIBBA for support, and the demand for our services has increased by 40% year over year. We strongly advocated for funding to meet this growing need, but despite our efforts, the state did not provide the necessary resources. Leaders in government, construction, and development express discontent about the lack of Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs) for projects, yet RIBBA, the organization generating the newest certifications that drive tens of millions of new revenues into our economy, did not receive a cent of the funding we requested this year.
RIBBA’s Key Legislative Wins
RIBBA acknowledges the Rhode Island General Assembly for enacting important legislation designed to promote economic equity and benefit RI entrepreneurs and small businesses. This achievement is a direct result of our relentless advocacy, dedicated efforts, and the integral role we played in pushing these bills forward. We also recognize our hard work and the significant impact our organization has had in making this legislative progress possible.
Secure Choice Retirement Savings Act
Sponsored by Chairman Evan Shanley and Senator Meghan Kallman, this act establishes a retirement savings program administered by the State Treasurer. It allows workers without employer-sponsored retirement plans to enroll in a portable IRA-style savings account. Businesses with fewer than four employees, including sole proprietors, can also opt into the program. This initiative empowers even the smallest businesses in Rhode Island to offer a competitive new benefit at no additional cost, fostering small business growth and advancing efforts to close the racial wealth gap. Nearly 172,000 Ocean Staters, including over 10,000 Black households, will benefit from this program. Rhode Island is the 22nd state to pass this legislation.
Bonding Waivers for MBEs/WBEs and Improved Payment Schedules
A bill sponsored by Representative Cherie Cruz and Senator Sandra Cano enables MBEs and WBEs in good standing to apply for and receive bonding waivers up to $250,000. Additionally, the bill improves payment terms, mandating that all bills be paid within 30 calendar days (formerly 30 business days) and that contractors pay subcontractors within 7 days of receiving payment from the state (formerly 10 days). These changes ensure timely payment for work, enhancing the ability of MBEs/WBEs to compete successfully for contracts, often hindered by bonding requirements.
Expansion of Statewide Paid Family Leave Program
While RIBBA advocated for comprehensive expansion of the paid family leave program, we are pleased to see the General Assembly pass a version with significant improvements. The new law extends the number of weeks a worker can take to 7 in 2025 and 8 in 2026 and increases the dependency allowance from $10 to $20. These enhancements provide more time and resources for caregivers, ensuring they can focus on their loved ones without the fear of job loss. Effective paid family leave programs have been shown to increase revenue and profit per full-time employee. Next year, RIBBA, along with the RI Paid Leave Coalition, will advocate for further expansions, including a more inclusive definition of family, 12 weeks of leave, and increased wage replacement percentages.
Continued Advocacy Needed
While these legislative achievements are commendable, less than 0.003% of the state’s $14 billion budget is allocated to directly support minority entrepreneurs, and these funds are channeled through government programs rather than community-based organizations like RIBBA that work daily with minority entrepreneurs. Combining targeted investment in RIBBA with legislation to close the racial wealth gap is the most strategic and efficient path forward for our economy. RIBBA will continue to advocate for these priorities in the next legislative session. |
