The South Eastern Economic Development (SEED) Corporation has recently closed on a $74,000 loan under the SBA 504 program to Foster Health Systems in Stoughton. The loan enabled the business to expand and create five new jobs.
The loan will enable Foster Health Systems, Inc. to purchase of a 2,000 square foot commercial condominium located at 4 Cabot Place. The lending team on the project was Lisa Holmes from SEED and Abby Nguyen of Eastern Bank, which participated in the financing.
Foster Health Systems was established as a home healthcare service in 2010 by current owner George Magabe who has worked as a registered nurse since 2004. With a team of over 50 nurses, the company focuses on skilled nursing, physical therapy, speech therapy, and occupational therapy. Foster Health Systems provides assistance to clients ranging from children to seniors in Norfolk and Plymouth counties.
Moving into a larger unit will enable the company to better suit the needs of its rapidly growing business. The office is open all week from 9 a.m. to 5 p.m. and has a 24-hour call system in place which allows clients to reach a nurse at all times. Visit their website at www.fosterhs.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 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 4.91 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 a Community Development Financial Institution (CDFI) under the U.S. Department of the Treasury and the SBA Micro Lender for the region. 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.
# # #