The South Eastern Economic Development (SEED) Corporation has closed on the first Community Advantage Loan in Massachusettsto Lamour By Design in Randolphunder the Community Advantage Loan Program established by the U.S. Small Business Administration (SBA).
SEED was certified as a Community Advantage Lender by SBA in late 2011. The program is designed to expand access to smaller loans in traditionally underserved communities.
“The program is specifically aimed at expanding access to capital for small business owners by opening SBA’s 7(a) loan program to community-based financial institutions like Taunton-based SEED Corp.,” said SBA Massachusetts Director Robert H. Nelson. “Community Advantage leverages the experience theses institutions already have in lending in economically challenged markets, along with their management and technical assistance expertise to help make their borrowers successful.”
Lamour, a community-based, holistic counseling and consulting clinic, is owned and operated by Patrice Lamour. Founded in 2009, the small business has 30 employees to address the multicultural counseling needs of its diverse client base. Lamour specializes in children under the age of 21 and their families. The loan will be used to purchase a client software system and for working capital. Her website is www.lamourgroup.org.
“SEED’s loan will allow me to improve healthcare by increasing my efficiency and productivity, which allows me to better serve my clients and the community,” stated Lamour. “I am able to improve the internal structure of my holistic counseling and consulting clinic by reducing risk, creating new jobs and increasing the overall size of my business.”
Studies have shown that small businesses in underserved communities are among the hardest hit by the recent economic downturn and helping them to recover, expand and create jobs will strengthen their local communities.
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 4.38 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. 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.
For more information about the Community Advantage Loan Program, go to: www.sba.gov/ma.
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