Jack Gilchrist OWES President Obama and TAX PAYERS An Apology [View all]

[Segami]

Star of Romney Ad Did Receive Government Assistance


In a Mitt Romney ad last week, a stern Jack Gilchrist of Gilchrist Metal Fabricating tells President Obama that his family -- and not the government -- built his company.

But John DiStaso reports Gilchrist "did receive some government help:

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.

“It was a loser and I wish I had never done it,” he said. “I bought some equipment with it.”


But he did not shy away from the fact that he has utilized government programs.


He also said his company received a U.S. Small Business Administration loan totaling “somewhere south of” $500,000 in the late 1980s.


He said his business has also received matching funds from the New England Trade Adjustment Assistance Center (NETAAC), which is federally-funded.


Gilchrist said about 10 percent of his company's contracts are defense-related.


“It's a small piece,” he said. “But we do business with a plethora of industries and certainly defense is one of them.


“Defense business is a good way to help the economy. But the President wants to cut the crap out of the defense budget.


“I'm not going to turn a blind eye because the money came from the government,” he said. “As far as I'm concerned, I'm getting some of my tax money back.


“I'm not stupid, I'm not going to say 'no.' Shame on me if I didn't use what's available,” he said. “As a matter of fact, right now, I'm driving on a road.


“So, no,” said Gilchrist, “I don't feel as though I've compromised anything or misled anybody.”


The Romney campaign also stands by the ad.

http://www.unionleader.com/article/20120723/NEWS0602/707199954