The South Eastern Economic Development (SEED) Corporation has recently closed on three business loans totaling $271,000 to Creative Child in Coventry, Raven Ridge Landscaping in North Kingstown and Silver Fox Fisheries in Narragansett. The loans enabled the businesses to expand and create 10 new jobs.
“Small business expansion is a telltale sign of Rhode Island’s increasingly stalwart economy,” stated Mark S. Hayward, director of the SBA Rhode Island District Office. “We are excited to see these three companies create jobs and thrive in their respective industries.”
Creative Child, Inc. received a $191,000 loan under the SBA 504 Program for the purchase of a building to expand the child day care business. The new building will be located at 614-620 Tiogue Avenue in Coventry, which is across the street from the current location. The expansion will create five new jobs. The lending team on the project was Lisa Holmes from SEED Corporation and Sean McIntyre of BankNewport, which also participated in the financing.
Owner Lori Lanoue started the child day care in 2006 with six children. Currently, she has 160 children enrolled. Creative Child offers services to infants and toddlers ages three to five. The day care also provides a half day program for kindergarten students and before and after school care for school age students. Their website is www.creativechildri.com.
SEED provided Raven Ridge Landscaping, LLC of North Kingstown with a $40,000 SBA Micro Loan for working capital and equipment. The project will create one new job. The SEED lender for the project was Tamarah Bacon.
Owners Ray Liberatore and Kristy Keenan purchased the business in 2011. Their services include lawn maintenance, fall and spring cleanups, mulching, aerating, seeding, dethatching, edging, weeding, lime applications and pruning. The landscaping business provides services to residential and commercial customers in Cranston, Warwick, West Warwick and Coventry.
Silver Fox Fisheries received a $40,000 loan for vessel repairs for Edward (Ted) McCaffrey’s lobster boat. The project will create four new jobs. The SEED lender was Tamarah Bacon.
Silver Fox Fisheries is located in Narragansett and was established in 1999 by Ted who worked aboard several fishing vessels prior to starting his own business. The business purchases, leases, and rents vessels to those in the fishing industry, as well as operates the vessels. Silver Fox Fisheries is based in the Port of Galilee in Narragansett and specializes in the procurement of lobsters for New England wholesalers. Ted’s fishing vessel Aces High makes approximately 35 trips per year.
As an SBA micro lender in Rhode Island, SEED can make loans from $1,000 to $50,000 for working capital, inventory, machinery and equipment, furniture and fixtures and refinancing business credit card debt. The interest rate is at 6 percent fixed for six years with no prepayment penalty.
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.
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 below market for 20 years, currently 4.79 percent.
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.
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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