The South Eastern Economic Development (SEED) Corporation has closed on two small business loans in the Plymouth area totaling $173,000. The loans enabled the businesses to start-up, continue operations and create new jobs.
“In these difficult economic times, we are very pleased to be able to provide financing to Lake Pizza and Deli, Inc. and Robert R. Rose Trucking,” stated Maria Gooch-Smith, SEED’s executive director.
Lake Pizza and Deli, Inc. received a loan of $138,000 under the SBA 504 Program through SEED to purchase a 1,390 square foot building for their convenience store. The expansion will create three new jobs. The participating bank was Bridgewater Credit Union.
The business is located at 269 Pembroke Street in Kingston. Lake Pizza and Deli will be operated by father and son team, Joseph R. Caruso and Joseph Orcutt-Caruso. The Caruso’s will offer a full-service deli, convenience store, pizza and sub shop, and ice-cream counter. Their website is www.thelakepizza.com.
Robert R. Rose Trucking received a loan of $35,000 under the Micro Loan Program for working capital and equipment. Following his father, Richard Lupo has worked in the trucking industry for many years. Robert Rose Trucking will provide transportation of equipment and materials to and from construction sites. The business will create two new jobs.
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 $50,000 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 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. 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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