Va. lawmakers propose $5K per job to lure employers

Two Virginia federal lawmakers are proposing to help states lure manufacturers back from overseas by offering eligible employers a $5,000 federal bounty for every new job they establish in rural or economically distressed areas.

U.S. Sen. Mark Warner, a Democrat, and U.S. Rep. Frank Wolf, a Northern Virginia Republican, said their proposal involves offering low-interest "forgivable loans" to companies if they establish "high-value manufacturing jobs" in needy areas of the United States. Each new facility would have to employ at least 50 people full time.

The loans would not have to be paid back if the employer keeps the jobs in place for at least five years. Qualifying companies would get a low-interest loan of $5,000 per job with $1,000 of the loan forgiven every year that the jobs stay in place.

Workers also would be paid hourly wages that are higher than the average hourly pay in the county that is getting the new positions.

Warner, who introduced the legislation in the Senate on Friday, said the program is intended to be an extra selling point for state and local economic development officials to use along with their own enticements when competing against other countries for prospective employers. The incentives cannot be used to lure employers away from other states.

Liz Povar of the Virginia Economic Development Partnership said she wants to study the details of the proposal more closely but thinks it could be a strong asset in attempting to lure new jobs.

The loan program's estimated $100 million cost would be funded by reallocating funds within the U.S. Department of Commerce, Warner said.

"As somebody who is deficit-obsessed," he said, "we're not going to create a jobs program that isn't paid for."

"This is a real jobs bill," said Wolf, who is introducing similar legislation in the House. "It's a repatriation."

Povar, who is director of business development for the partnership, noted that while the economic incentive is a strong tool, the more important issue when companies are seeking a new location is the quality of the workforce.

Executives want to know the depth of skill levels, the local work ethic and the availability of future employees if they expand, Povar said.

The Warner-Wolf legislation, called the America Recruits Act of 2011, also would require additional Commerce Department assistance for smaller American companies attempting to export their goods overseas.

"We don't do a very good job... helping those companies," Warner said.

Bill Bartel, (757) 446-2398, bill.bartel@pilotonline.com