The South Eastern Economic Development (SEED) Corporation has closed on three small business loans to Cape businesses totaling $452,000. The loans enabled the businesses to start-up, expand and create new jobs.
“In these difficult economic times, we are very pleased to be able to provide financing to Reaching Heart Center in West Harwich, Café Soleil in Wareham and Saltwater Grille in Orleans,” stated Maria Gooch-Smith, SEED’s executive director.
Reaching Heart Center received a loan of $342,000 under the SBA 504 Program through SEED to purchase and renovate the 4,083 square foot facility for their dance studio. The expansion will create three new jobs. The participating bank was Cape Cod Five Cents Savings Bank.
Reaching Heart Center is located at 27 Route 28 in West Harwich. Owner Melissa Heart established the full service dance studio in 2001 and currently offers 33 classes per week to all students three years old and up. With over 25 years of dance experience, Melissa provides a strong level of instruction in Ballet, Pilates, Jazz and Modern Dance, while providing two performance opportunities per year. Her website is www.reachingheart.com.
Café Soleil received a loan of $60,000 under SEED’s Revolving Loan Fund Program to assist with the purchase of a commercial property and equipment for their start-up restaurant. The loan will help create six new jobs. The participating bank was Mayflower Bank.
“When it comes to the very daunting task of obtaining financing in order to become a small business owner, working with SEED and its very knowledgeable, personable and professional staff was by far the most pleasant and reassuring aspect of the entire process,” stated owner Leanne Wakefield.
Café Soleil is located at 241 Main Street in Wareham. The business will offer competitively priced comfort food and focus on creating an intimate and relaxed, old fashioned friendly neighborhood venue. The restaurant will operate Wednesday through Friday from 4:30 to 8:30 p.m., Saturdays 11:30 a.m. to 8:30 p.m. and Sundays 11:30 a.m. to 5:00 p.m.
Saltwater Grille received a loan of $50,000 under SEED’s Micro Loan Program for working capital to continue their restaurant operations. Co-owners Lisa and Scott Moss renamed the restaurant in 2005 and offer a variety of seafood, beef, pasta and poultry dishes. Saltwater Grille operates year-round and is located on Route 28 in Orleans Center. The loan will help create 3.5 new jobs.
Their website is www.capecodswg.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. 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 4.57 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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