The South Eastern Economic Development (SEED) Corporation recently made a loan to Cape Cod Gymnastics, Inc. to enable the business to expand and create two new jobs.
“In these difficult economic times, we are very pleased to be able to provide financing to Cape Cod Gymnastics, Inc. in Yarmouth Port” stated Maria Gooch-Smith, SEED’s executive director.
Cape Cod Gymnastics, Inc. received a loan of $433,000 under the SBA 504 Program through SEED to purchase land and construct a 9,720 square foot facility for their gymnastics studio. The expansion will create two new jobs. The participating bank was Community Bank.
“Any small business owner has felt the frustrations of the economy over the last several years,” stated Jen Watkins, co-owner of Cape Cod Gymnastics, Inc. “SEED allowed us to push through the hurdles of the economic climate and made it possible for us to reach our goals of business growth and continued success.”
Cape Cod Gymnastics, Inc. is located at 5 Corporation Road in Yarmouth Port. Owners Jason and Jennifer Watkins provide gymnastics and fitness programs for children of all ages and ability levels. The small business was established in 2002 and provides boys and girls Olympic gymnastics apparatus, separate pre-school gym area and after-school daycare programs. They have coached state, regional, and national qualifiers and champions, as well as the USA Gymnastics Talent Opportunity Program’s (TOPS) National Team members. Their website is www.capecodgymnastics.com.
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 $50,000 to $5 million for most small businesses, and $5.5 million for manufacturing businesses, at a fixed interest rate below market for 20 years, currently 5.4 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 $5.5 million to assist small businesses togrow 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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