The South Eastern Economic Development (SEED) Corporation has closed on two small business loans in the New Bedford area. The loans enabled the businesses to expand, continue operations and create new jobs.
“In these difficult economic times, we are very pleased to be able to provide financing to AJW Performance in Wareham and P&D Market, Inc. in New Bedford,” stated Maria Gooch-Smith, SEED’s executive director.
AJW Performance received a loan of $50,000 under the Revolving Loan Fund Program through SEED for the purchase of a commercial building to run their distribution business. The participating bank was First Citizens’ Federal Credit Union.
“SEED has allowed us to bring our passion for small business to the next level,” stated Andrew Wallace, owner of AJW Performance. “Since moving into our newly purchased building we have created three new jobs, and plan on adding two more within the next 12 months”
The business is located at 16 Kendrick Road in Wareham. Owner Andrew J. Wallace is a certified North American Distributor of aftermarket suspension systems for sports cars to wholesale and retail businesses. AJW has recently expanded its product line from Subaru parts to include BMW, Honda and Lexus in an effort to better serve their clients. Their website is www.ajwperformance.com.
P&D Market, Inc. of New Bedford received a loan of $142,000 under the SBA 504 Program through SEED for the purchase of a 3,376 square foot building for their convenience store. The loan will help create two new jobs. The participating bank was Mechanics Cooperative Bank.
P&D Market, Inc., is located at 114 Tallman Street in New Bedford. Owner Sajjad Rehman started the convenience store in 2006 and offers food, lottery, and a full selection of alcoholic beverages.
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 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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