SEED Makes 76 Loans Totaling $22.1 Million to Region’s Small Businesses and Helps Create 339 New Jobs

South Eastern Economic Development (SEED) Corporation announced today, that during Fiscal Year 2015 just ended on September 30, it made 76 small business loans totaling $22.1 million, and assisting in the creation of 339 new jobs. The loans were made to businesses in the region under all of SEED’s loan programs, which range from micro loans up to $50,000, small loans up to $200,000, and SBA 504 loans up to $5.5 million.

“SEED’s loans enable businesses to start-up, continue operating, expand, and create new jobs,” stated Maria Gooch-Smith, SEED’s executive director. “Without SEED’s loans many small businesses would not be able to operate or take on expansion projects. These loans also leveraged $29.3 million in bank loans and private funds,” added Gooch-Smith.

“Demand for SEED’s SBA 504 loans, which finance the purchase and improvement of business real estate and equipment in participation with the region’s banks, increased slightly this past year as the region climbed slowly from the depths of the Great Recession,” explained Gooch-Smith. Under the SBA 504 Program, SEED closed on 21 loans and approved another 26 for a total of $20.4 million.

Gooch-Smith added that SBA 504 loans remain a great option for small businesses undertaking real estate projects and financing heavy machinery and equipment since the down payment is generally only 10 percent, and the interest rate is below 5 percent fixed for 20 years. SBA 504 loans are also a good option for  participating banks enabling them to assist a small business while mitigating their risk by providing only 50 percent of the financing in front of the 40 percent provided by the SBA 504 loan.

According to Gooch-Smith, many of SEED’s smaller loans were made to businesses which could not qualify for conventional bank financing due to insufficient collateral, tight cash flow, start-up status, or lower credit scores, but they were viable community businesses which create jobs and are important to the region’s economy. SEED made 28 loans ranging from $15,000 to $200,000 to small businesses in the region. These loans totaled $1.7 million and assisted in the creation of 95 new jobs.

This past year, SEED also held 27 Entrepreneurial Workshops throughout the region attended by 316 existing and prospective entrepreneurs, and provided business technical assistance to another 588 individuals. The workshops were sponsored by: BankNewport; Bridgewater Savings Bank; Cape Cod Five Cents Savings Bank; Eastern Bank; Home Loan Investment Bank; Rockland Trust Community Development LLC; and S-Bank. Rockland Trust Community Development LLC also contributed $25,000 to SEED’s Business Assistance Program

SEED is a non-profit economic development corporation established in 1982 to assist small businesses in the region. Under various programs, SEED makes loans from a $1,000 micro loan to a $5.5 million SBA 504 loan to assist small businesses to grow and create jobs. In 33 years, SEED has made 1,963 loans under all its programs totaling $340.3 million, leveraging $710.1 million in bank loans and private funds, and assisting in the creation of 12,159 jobs.

SEED also works with business organizations and financing institutions in the region to ensure that individuals who are committed to owning and operating a small business are able to obtain the assistance they need to be successful.

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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