July 23. 2012 3:32PM
John DiStaso's Granite Status: Romney-backer's NH business received government-assisted loans
By JOHN DiSTASO
Senior Political Reporter
MONDAY, JULY 23, UPDATE: HE GOT HELP. In the Mitt Romney campaign web and television ads that received national attention last week, a blunt Jack Gilchrist of Gilchrist Metal Fabricating in Hudson tells President Barack Obama that he, his father and his son _ and not the government _ built his company.
But as it turns out, Gilchrist did receive some government help for his business, albeit a long time ago.
In 1999, Gilchrist Metal received $800,000 in tax-exempt revenue bonds issued by the New Hampshire Business Finance Authority “to set up a second manufacturing plant and purchase equipment to produce high definition television broadcasting equipment,” according to a New Hampshire Union Leader report at the time.
The federal government allocates to each state a certain amount of tax-exempt bonding capacity each year for business and housing loans.
Because the bond buyers do not pay federal taxes on the interest, the interest rate for the borrower is typically lower than that of standard bank financing.
Last year, Gilchrist Metal also received two U.S. Navy sub-contracts totaling about $83,000 and a smaller, $5,600 Coast Guard contract in 2008, according to a government web site that tracks spending.
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