SEED Makes Three Loans to Rhode Island Small Businesses Totaling $316,600

SEED Makes Three Loans to Rhode Island Small Businesses Totaling $316,600

The South Eastern Economic Development (SEED) Corporation has recently closed on three small business loans totaling $316,600 to Total Body Affinity in Johnston, JRA Collision Center in Bristol, and Clark’s Auto Sales & Service in Cranston. The loans enabled the businesses to start-up, expand and create 12 new jobs.

“I congratulate these Rhode Island small businesses for their growth and job creation,” said Mark S. Hayward, director of the SBA Rhode Island District Office.  “It is important that lending partners like SEED continue to support the small business community by providing the access to capital needed by these entrepreneurs to start, grow and succeed.”

Total Body Affinity received a $10,000 SBA Micro Loan for working capital to assist in the start-up of their day spa. Owners Christina Di Biasio and Brooke Young opened the day spa and health club in November 2013. Services include nail and skin-care, massage therapy and fitness classes. They specialize in improving the mind, body and soul.

The start-up will create six new jobs.  The business is located at 190 Putnam Pike in Johnston. Their website is www.totalbodyaffinity.com. The lending team from SEED was Laurie Driscoll and Lindsey Williams.

“With the help of SEED and utilizing their Micro Loan Program, we were able to get our business up and running,” stated Christina Di Biasio. “They made the process simple and easy to understand. We were able to develop a personal relationship that made the process a positive experience!”

JRA Collision Center, LLC received a $207,000 loan under the SBA 504 Program for the purchase of a 7,000 square building where they operate their vehicle collision repair center. The project will create four new jobs. The lending team on the project was Lisa Holmes of SEED and Gerald Rego from St. Anne’s Credit Union, which was also involved in the financing.

JRA Collision is an automotive collision repair center that has been in operation since 1995. Father and son team Gerrit Vander Kaaden and Gerrit M. Vander Kaaden have recently purchased the business. They have over 30 years of experience in the industry, and provide collision repair services and industrial coating and towing. The business is located at 360 Metacom Avenue in Bristol. Their website is www.jracollision.com.

SEED provided Clark’s Auto Body & Service, Inc. with a $99,600 loan to assist with the purchase of a 2,400 square foot building to operate the auto sales and repair business. The project will create two new jobs. The lending team was Laurie Driscoll from SEED and Maria Caetano from Freedom National Bank, which was also involved in the financing.

Jerome Correy established Clark’s Auto Sales & Services in 1996 as a used car dealership in Providence. The expansion will allow Correy to provide service, repair, part sales and towing services in addition to selling used cars. The business is now located at 364 Wellington Avenue in Cranston, only three miles from the previous location.

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 with a life of 10 years. 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 5.2 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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