The South Eastern Economic Development (SEED) Corporation has recently closed on two loans to Cape Cod businesses totaling $250,000. The loans were made to Red Top Sporting Goods in Bourne and Laxmi in Wellfleet. The loans enabled the businesses to expand and create three new jobs.
SEED provided Red Top Sporting Goods, Inc. with a $135,000 loan under the SBA 504 Program for the purchase of the building where owner Thomas Coots operates his sporting goods store. The project will create two new jobs. The lending team on the project was Anne Trevisani from SEED Corporation and Anthony Aveni of Rockland Trust Company.
“We really enjoyed working with SEED. They understood how our business operated and its seasonality,” stated Tom Coots, owner of Red Top Sporting Goods. “It was very helpful that they worked so closely with our bank throughout the loan process.”
The fishing and tackle shop was established in the 1940’s. They specialize in saltwater and freshwater fishing and carry a wide array of fishing gear including rods, reels, lures, hooks, lines, pork rind, trailers, scents, potions, tackle bags and pouches, tools and scales, fly tying, offshore tackle, clothing, boots and hats. Their website is www.redtoptackle.com.
Laxmi received a $115,000 loan under the SBA 504 Program for the purchase of a new building to relocate the existing retail store. The expansion will create one new job. The lending team on the project was Laurie Driscoll from SEED Corporation and Charles DeSimone of Bank of Cape Cod.
The gallery/gift shop was established in 2011 by owner Laxmi Venkateshwaran. The retail store carries handmade jewelry, ceramics, unique crafts and clothing. The shop is now located across the street from its previous location at 321 Main Street in Wellfleet. The Laxmi store operates April through December and is closed January through March.
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 with a life of 10 years. SEED’s portion can range from $120,000 to $5 million for most small businesses, and $5.5 million for manufacturing businesses, at a fixed interest rate for 20 years, currently 4.79 percent, and a 10 percent down payment.
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. SEED is also a Community Development Financial Institution (CDFI) under the U.S. Department of the Treasury. 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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