The South Eastern Economic Development (SEED) Corporation has recently closed on six small business loans to Rhode Island small businesses: Subway in Middletown; American Chest Company in North Kingstown; Hair Heart and Soul in Bristol; Angkor Restaurant in Providence; Aten Energy Conservation in Providence; and Rive Gauche Day Spa in Woonsocket. The loans totaled $462,000 and enabled the businesses to expand, start-up, and create 27 new jobs.
“Business expansion and job creation are vital to the growth of the Rhode Island economy,” said Mark S. Hayward, director of the SBA Rhode Island District Office. “I congratulate these six small businesses for obtaining the resources they need to grow, and commend SEED for their continuing commitment to providing capital to the small business community.”
Subway received a $302,000 loan under the SBA 504 Program through SEED for the purchase and construction of a 1,008 square foot building to operate the sub shop at 48 Green End Avenue in Middletown. The project will create seven new jobs. The lending team on the project was Lisa Holmes of SEED Corporation and Paul Medeiros from BankFive.
“We are thrilled to be a part of Derek’s sixth Subway acquisition,” stated Lisa Holmes, Lending Team Leader for SEED. “We assisted Derek with his first Subway purchase and have been fortunate to see his company grow from one to eight locations. We wish him all the best!”
American Chest Company received a $25,000 loan under the SBA Micro Loan Program to purchase inventory for David McLoughlin’s start-up American made chest distribution business in North Kingstown, RI. American Chest produces fine hardwood chests for cigar humidors, jewelry, silver flatware, and cremation urns, which are designed by McLoughlin. The website is www.americanchest.com. The lending team was Tamarah Bacon, Lindsey Williams and Laurie Driscoll.
“As a start-up venture, SEED Corporation gave us the opportunity to secure a Micro Loan to buy inventory and establish creditworthiness, which we will need in order to grow the business in the future,” stated David McLaughlin, owner of American Chest Company. “SEED’s efficient lending team helped to make the loan process extremely easy and enjoyable.”
SEED provided Hair Heart & Soul Salon and Spa with a $50,000 loan under the SBA Micro Loan Program for working capital to assist in the expansion of the business located at 407 Hope Street in Bristol. Owner Sarah Redman and her husband, Michael, purchased Hair Heart and Soul in 2003. Their well-rounded artistic team consists of 21 service professionals including hair stylists/designers, nail technicians, make-up artists, an esthetician, a massage therapist, electrolysis technician, sunless tanning specialist, and a medical reflexologist. The salon and spa is open Tuesday through Thursday from 9:00 am to 8:00 pm and Friday and Saturday from 9:00 am to 5:00 pm. Their website is www.hairheartandsoul.com. The lending team on the project from SEED was Tamarah Bacon and Laurie Driscoll.
“The entire team from SEED was extremely helpful and made the loan process smooth, flawless and quick,” stated Sarah Redman, Owners of Hair Heart & Soul. “Once again I thank SEED for helping me achieve my dream of continuing to grow my Spa and Salon business!”
Angkor Restaurant, Inc. received a $15,000 loan under the SBA Micro Loan Program for working capital. Owner Chutema Am offers authentic Cambodian, Thai and Vietnamese cuisine and is located in the Fox Point neighborhood of Providence at 10 Traverse Street. In addition to their dine-in services, they also provide take-out, delivery and catering services. Angkor is open Monday through Saturday from 11:30 am to 3:00 pm and dinner from 5:00 pm to 10:00 pm. On Sunday they are open from 4:00 pm to 9:00 pm. The restaurant’s website is www.angkorrestaurant.com. The lending team from SEED was Angela Knight, Lindsey Williams and Laurie Driscoll.
“SEED was very understanding of my needs as a small restaurant needing working capital during a slow time,” stated Chutema Am, Owner of Angkor Restaurant. “The compassion, knowledge, and friendly service from the staff, made the loan process feel comfortable and assuring.”
SEED provided Aten Energy Conservation, LLC with a $50,000 loan under the SBA Micro Loan Program for working capital to assist in the expansion of the business located at 219 West Park Street in Providence. Aten is a home-performance contracting company, founded in 2010 by Matthew Banoub. They make retrofit improvements that increase the efficiency of existing homes and recue energy consumption, which is done through a combination of air sealing, insulation and weatherization work. The expansion will create four new jobs. The lending team from SEED was Tamarah Bacon, Lindsey Williams and Laurie Driscoll.
SEED provided Rive Gauche Day Spa with a $20,000 loan under the SBA Micro Loan Program to purchase furniture, fixtures and equipment for the salon and day spa at 271 Social Street in Woonsocket. Rive Gauche, formally Shear Flair Ultimate Day Spa, is a full-service hair and beauty spa that has been in operation for over two decades. They provide a variety of hair services, nail services, and skin care services including facials, body waxing and massages. The spa is open from 8:00 am to 8:00 pm Tuesday through Saturday. The lending team on the project was Tamarah Bacon, Lindsey Williams and Laurie Driscoll.
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 $120,000 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 5.46 percent.
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. SEED is also a Community Development Financial Institution (CDFI) under the U.S. Department of the Treasury. Under various programs, SEED makes loans from $1,000 up to $5.5 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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