Savelkoul Proposes $50 million “Entrepreneur Trust Fund”
Dickinson – Stuart Savelkoul, candidate for the North Dakota State House of Representatives from District 37 Dickinson, has announced a job-creation plan that would wisely use a portion of the projected $550 million surplus and seek to stem the problem of out-migration at the same time.
“We need to find new ways to keep our graduates in North Dakota, and we need to spur new business to employ other graduates. By setting aside $50 million of the $550 million state surplus as low-interest small business loans for entrepreneurs that are graduates of North Dakota colleges and universities we are creating sustainable reasons for young people to stay in North Dakota after graduation. These loans would come with the same repayment terms that low interest student loans carry,” Stuart Savelkoul stated.
In addition to the business friendly terms of repayment, an added incentive for these entrepreneurs is that if they employ three (3) other graduates of North Dakota colleges and universities, full-time (2000 hours per year), at a wage of at least $10 an hour, the remainder of the loan will be forgiven.
“It is true that half of all small businesses fail within the first two years, but if 500 successful new businesses can be created for a $50 million investment on the state’s part – that is money well spent. We can only hope that each of those 500 businesses retains four graduates in the state and that we can forgive those loans. The economic impact of 2,000 productive taxpayers who would have otherwise left, in the long run, will far exceed the $50 million price tag. And if it doesn’t work after a two year trial, we can try something else. Government programs that do not work should not be kept around, but that should not stop us from trying,” Stuart Savelkoul explained.
Outline of the Plan
- $50 million over two years (2008-2009)
- 1,000 - $50,000 loans with a 6-month grace period and an interest rate tied to that of Stafford Student Loans (max. 8.5%) to graduates of North Dakota Universities who create a standard business plan.
- Loan forgiveness upon two years of full-time employment of three other North Dakota graduates.
