SEED Makes Five Loans Totaling $662,000 to Cape and Islands Businesses

The South Eastern Economic Development (SEED) Corporation has closed on five small business loans on the Cape and Islands totaling $662,000. The loans enabled the businesses

to expand and create new jobs.

“In these difficult economic times, we are very pleased to be able to provide financing to

Cape Destinations in Harwich, Leonard Insurance Agency, Inc. in Osterville, Frame Center

of Nantucket, Inc. in Nantucket, Mass Hydroseeding, Inc. in Cataumet, and McGee’s Ice Cream, Inc. in Hyannis,” stated Maria Gooch-Smith, SEED’s executive director.

Cape Destinations received a loan of $232,000 under the SBA 504 Program through SEED

to purchase a 5,000 square foot facility for their transportation business. The expansion will create five new jobs. The participating bank was Cape Cod Cooperative.

“We have been in business for 13 years and have always dreamt of owning our own building. The SBA 504 Program through SEED allowed us to take advantage of lower real estate prices and enabled us to relocate and expand our business,” stated Peggy Garrahan, co-owner of Cape Destinations.

The new facility is located at 182-186 Queen Ann Road in Harwich. Owners Peggy Garrahan

and Jay Kavanaugh offer a wide variety of transportation services for weddings, airport transportation, business, special occasions and school sports team events. In addition, the business also offers repair and inspection services for commercial vehicles. Their website is www.capedestinations.com.

Leonard Insurance Agency received a loan of $150,000 under the SBA 504 Program through SEED for the purchase of an office building for their insurance business. The expansion will create two new jobs. The participating bank was Bank of Cape Cod.

“It was a pleasure to work with Bank of Cape Cod and SEED. The SBA 504 Program’s low fixed interest rate and low down payment made the purchase of my new office building possible,” stated Debi James, owner of Leonard Insurance Agency.

The new office is located at 683 Main Street, Suite B in Osterville. Owner Debi James has been providing Cape Cod businesses, families, and individuals with their auto, boat, homeowners and business insurance needs. Their website is www.leonardagency.com.

SEED also financed a business on the island of Nantucket. Frame Center of Nantucket received a loan of $201,750 under the SBA 504 Program through SEED for the purchase of a fifth location for their custom picture framing business. The expansion will create four new jobs. The participating bank was Community Bank.

Owner Wayne Petty offers custom picture framing with a large selection of frame moldings, mats and glass. In addition, he offers affordable, fast service and quality workmanship. Their website is www.frame-center.com.

Mass Hydroseeding received a loan of $50,000 in gap financing under SEED’s Small Loan Program for the purchase of condominium space for their hydroseeding and erosion control business. The loan will help the business create one job. The participating bank was Rockland Trust.

The new office is located at 1340 County Road in Cataumet. Owner James DiPietro has been providing hydroseeding and erosion control services for over 20 years. Mass Hydroseeding

uses a process where seed, water, fertilizer and wood fibers are mixed together and sprayed onto a prepared site. The method completes the job in one application and the site is evenly seeded, properly fertilized, bonded and protected by fiber mulch. Their website is www.masshydroseeding.com.

McGee’s Ice Cream received a loan of $28,000 under the Micro Loan Program to refinance business-related credit card debt for their existing ice cream and sandwich shop. Owner Douglas McGee has expanded his menu to include cotton candy, fried dough, homemade cones, hot dogs, homemade calzones and a “make your own sundae bar”.

Under the SBA 504 Program, SEED can provide up to 40 percent of the financing needed behind

a bank for the purchase of buildings and equipment. SEED’s portion can range from $80,000

to $2 million for most small businesses, and $4 million for manufacturing businesses, at a fixed interest rate below market for 20 years, currently 5.5 percent.

“Often the cost of financing real estate with an SBA 504 loan is less than the cost of leasing. The major benefit of the program is that it enables a small business to obtain up to 90 percent financing and keep more of its cash for operations,” stated Gooch-Smith.

SEED can also lend up to $200,000 for working capital and other uses. The term on the loans is up to 10 years with longer repayment periods, if necessary. Interest rates range from 5 percent to 6 percent fixed depending on whether there is bank participation.

SEED Corporation is a non-profit economic development organization certified in 1982 by the U.S. Small Business Administration. Under various programs, SEED makes loans from $1,000

up to $4 million to assist small businesses to grow and create jobs throughout the region.

For more information about the SBA 504 Program and other SEED loan programs, please call 508-822-1020 or visit SEED at www.seedcorp.com.

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