TAUNTON – The Massachusetts-based South Eastern Economic Development Corp. is targeting Rhode Island companies with new loan offerings in wake of receiving $1 million through a new state-funded small business loan program, which could augment the nonprofit’s lending activity in the Ocean State.
The economic-development organization, known as SEED Corp., is offering small-business loans to Rhode Island businesses from $1,000 to $200,000 at a 5 percent to 6 percent fixed rate. The offering came following the state’s award of $1 million to SEED through its new loan program, dubbed the Small Business Assistance Program. And while the organization helps make loans throughout the region, the state money is earmarked specifically for Rhode Island small businesses. Last year, the organization made seven loans totaling $2.5 million through a federal small-business lending program run by the U.S. Small Business Administration of Rhode Island.
The program is designed to provide forgivable loans to partnering organization, such as SEED, who in turn make loans to qualifying small businesses.
SEED was one of six companies to receive awards ranging from $125,000 to $1.9 million. In its advert, the nonprofit offers both microloans, up to $50,000, and small-business loans up to $200,000. Microloans, offered for up to six years at a 6 percent fixed rate, can be used for working capital, equipment, furniture, fixtures and refinancing of business credit card debt.
The small-business loans, offered at a 5 percent fixed rate with bank participation and 6 percent without, are obtainable up to 10 years and with amortizations up to 20 years. The small-business loans can be used for working capital, equipment, leaseholds and real estate for the use of the business.
Daniel Jennings, senior economic development adviser at The R.I. Commerce Corp., last week said of the state’s small business loan program, “The goal is to create a lending platform, and meet unmet needs, but do it in a way that’s safe.”
