EagleTribune.com, North Andover, MA

New Hampshire

January 16, 2013

Hassan, Executive Council to meet today

Derry company seeks financing guarantee

DERRY — New Hampshire’s new governor and Executive Council convene for the first time today and jobs for Derry will be front and center.

Pending is a state financing guarantee the head of the New Hampshire Business Finance Authority said could fuel future growth and expansion for a Derry company.

M-R Wood Recycling, located on Scobie Pond Road, is a 40-year-old family business that removes stumps and makes “Nature’s Best” bark mulch. The company employs 11 people.

“They have a new wood chip product they are introducing,” BFA executive director Jack Donovan said.

The company is promoting the Stump Chunks product on its website.

“Try our new top of the line firestarter product,” the website reads. “Stump Chunks is 100 percent all natural and super fast lighting. You need to see it to believe it.”

The state is considering a guarantee of up to 75 percent, or $375,000, of the $500,000 financing the company is requesting.

The company is seeking working capital for manufacturing and wholesale operations.

“The assumption is the company will grow,” Donovan said. “They have been around a long time, a couple of generations. Small businesses like that create jobs.”

The authority has concluded through its review that the guarantee “will contribute significantly to the success of the financing,” and will be for the public’s benefit, and create or preserve employment.

“Based upon the authority’s preliminary review of information submitted by the lender and the company, the authority believes that the primary obstacle to the successful growth for the company’s operation is the ability to obtain locally based financing,” a memo in the council’s agenda packet said.

The authority is acting under the state’s Working Capital Loan Guarantee Program, which aims to make sure capital is available to companies for the benefit of the New Hampshire economy.

The company refused to comment yesterday because the matter was awaiting approval by the governor and council.

This is Gov. Maggie Hassan’s first business meeting with the Executive Council, which features two brand new councilors and a returning former councilor.

Newcomers Chris Pappas and Colin Van Ostern join the council, along with former councilor Debora Pignatelli. All are Democrats.

Republicans Chris Sununu and Ray Burton, the dean of the council, also return.

1
Text Only | Photo Reprints
New Hampshire

ET Videos