SEED is an Intermediary Lender under SBA’s Micro Loan Program. SEED has access to $5 million in SBA loan funds to assist micro businesses. SEED also has grant funds provided by the State of Massachusetts, and the CDFI Fund.
The following lending institutions have contributed a cash contribution to the required loan loss reserve fund:
- BayCoast Bank
- Boston Private Bank
- Bristol County Savings Bank
- Cape Cod Five Cents Savings Bank
- Citizens Bank
- Eastern Bank
- Middlesex Savings Bank
- Rockland Trust Company
- Sovereign Bank
- Webster Bank
With funds from SBA, the State of Massachusetts and Rockland Trust Community Development Corporation, SEED provides technical assistance to start-up and existing small businesses.
Under the Micro Loan Program, SEED provides loans up to $50,000 which can be used for working capital, leasehold improvements, machinery and equipment, furniture and fixtures and refinancing of business credit card debt.
Manufacturing, retail, wholesale and service businesses usually having five employees or less at the time of application and meeting the definition of small business.
The program provides assistance to small businesses in all of Barnstable, Bristol, Dukes, Middlesex, Nantucket, Norfolk, Plymouth and Suffolk counties in Massachusetts and Rhode Island. SEED will defer to local programs providing the same type of assistance.
Up to six years.
Generally close to current fixed market rate.
All appropriate business assets, personal guaranties and personal assets as necessary to collateralize the loan.
The small business has to demonstrate potential for job creation or retention, especially jobs which would be available to low and moderate-income individuals. Job creation compliance will be monitored by SEED.
The small business has to demonstrate management capacity and/or willingness to accept close management consultation and technical assistance throughout the life of the loan, if necessary.
The small business has to demonstrate that adequate capital or loan funds to fully finance the business’ needs are not available. A micro loan can be a portion of a larger financing package in conjunction with a lending institution.
Decisions on loans will be made on the basis of the following: a small business’ need for the loan; a small business’ ability to create or retain jobs and/or provide a community service; the character and management ability of the principals; credit history of the principals; cash flow available to repay the loan; and collateral for the loan.
SEED’s Micro Loan Committee approves loans via email or at a meeting. Normally it takes 15 days or less to obtain approval after all the required information has been submitted to SEED. The following is the information needed to review a loan application:
- Business Plan for start-up business including Projected Income Statement, Monthly Cash Flow for the First 12 Months, and Day One Balance Sheet. SEED has Business Plan Booklets available. (Please save a blank copy of the business plan booklet to your desktop before filling out electronically).
- Application Form
- Documentation on the Use of Loan Funds such as Purchase and Sale Agreements, Quotes and Estimates.
- Collateral Information such as Appraisals, Tax Assessments and Invoices.
- A Balance Sheet and Profit and Loss Statement and Income Tax Returns for the Business for the last 3 years and Interim Statements no older than 90 days.
- Resumes of Principals, or Personal Data Sheet (SEED Form).
- Personal Income Tax Returns for the last 2 years for Principals with 20 Percent or More Ownership.
- IRS Certification (Form 4506-T) – Please sign; SEED will fill out.
- Personal Financial Statement (SBA Form 413) – Please fill out or provide a bank form.
SEED charges a $60 non-refundable application fee, plus a one point processing fee prior to closing and closing costs (variable).
For more information, please contact our small business lending team.
SEED is an equal opportunity lender and business assistance provider.