The South Eastern Economic Development (SEED) Corporation recently closed on two small business loans in Rhode Island. The loans enabled the businesses to continue operations, expand and create new jobs.
“In these difficult economic times, we are very pleased to be able to provide financing to Freedom Technology Solutions, Inc., Quad’s Automotive Repair, Inc., and other small businesses in Rhode Island,” stated Maria Gooch-Smith, SEED’s executive director.
“I congratulate Freedom Technology Solutions and Quad’s Automotive Repair for obtaining the financing they needed to grow their businesses,” said Mark S. Hayward, director of the U.S. Small Business Administration, Rhode Island District Office. “It is particularly important to note that this funding also will help to create three jobs.”
Freedom Technology Solutions, Inc. received a loan of $149,000 under the SBA 504 Program through SEED for the purchase of a 5,805 square foot office building for their information technology business. The loan will help create three new jobs. The participating bank was Bank of America.
The new office is located at 920 Hartford Avenue in Johnston. Freedom Technology Solutions, Inc. is an information technology service provider, assisting small to medium size businesses’ technological needs. Freedom Technology offers a live help desk and 24/7 support for users at the office, at home and on the road. Their website is www.freedomtechit.com.
Quad’s Automotive Repair, Inc. received a loan of $20,000 under the SBA Micro Loan Program for working capital for their automobile repair shop. The business is located on Point Judith Road in Narragansett and is owned and operated by Peter and Michelle Laurie. Quad’s Automotive offers services and repairs to domestic and foreign cars. The loan will help create one new job. Their website is www.quadsautomotive.com.
“Working with SEED made the loan process easy and pleasant. Their help will allow us to continue to grow our business,” stated Michelle Laurie, co-owner of Quad’s Automotive Repair, Inc.
Other small businesses recently financed by SEED include:
Eco English Experience, Central Falls, Micro Loan $2,000
Fairmount Liquors, Inc., Woonsocket, SBA 504 Loan $95,000
OM Kids Yoga Center, Pawtucket, Micro Loan $20,000
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 equiptment. SEED’s portion can range from $80,000 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 make micro loans up to $50,000 and larger loans up to $200,000 for working capital and other uses including repayment of high interest credit card debt used for the business. The term on micro loans is up to six years and on larger loans 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 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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