Chessawanock Island Oysters to expand, thanks to SEED business loan

CHESSAWANOCK ISLAND Oysters on Station Street in Cranston recently received $75,000 in financing from the South Eastern Economic Development Corp. using R.I. Commerce Corp. funds and an SBA Micro Loan that will allow it to expand from three to five acres in Narragansett Bay, buy additional farming equipment, and create four more jobs.
CHESSAWANOCK ISLAND Oysters on Station Street in Cranston recently received $75,000 in financing from the South Eastern Economic Development Corp. using R.I. Commerce Corp. funds and an SBA Micro Loan that will allow it to expand from three to five acres in Narragansett Bay, buy additional farming equipment, and create four more jobs.

CRANSTON – Chessawanock Island Oysters on Station Street recently received $75,000 in financing from the South Eastern Economic Development Corp. using R.I. Commerce Corp. funds and a Small Business Association Micro Loan that will allow it to expand from three to five acres in Narragansett Bay, buy additional farming equipment, and create four more jobs.

“We are pleased that Chessawanock Island Oysters is receiving this loan from our small business assistance program,” Commerce Secretary Stefan Pryor said in a statement. “The Rhode Island aquaculture and shellfishing industries are vital components of our state’s economy. These modest investments in small businesses are an important part of our economic development strategy.”

According to a Commerce RI spokesman, $37,500 was provided by Commerce RI.

Chessawanock, established in 2012 by owner Kyle Hess, cultivates oysters to sell to local wholesalers who distribute them in and out of state.

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The in-water nursery grows seed to a healthy planting size before transferring oysters to floating OysterGro Cages, where they are tended by hand. The company uses only native species approved by the National Shellfish Sanitation Program.

“As a nonprofit community lender, SEED will be able to make loans up to $250,000 with the RI Commerce funds,” Maria Gooch-Smith, SEED’s executive director, said.

She said loans can be made for real estate purchases or improvements for the business along with uses including working capital and refinancing of high-interest rate business credit cards. Rates range from 5-6 percent fixed and the term on the loans can go up 10 years with longer amortization.

Under various programs, SEED, a nonprofit economic development organization, makes loans from $1,000 up to $5.5 million to help small businesses grow and create jobs throughout the region.

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 4.89 percent.

For information about the SBA 504 Program and other SEED loan programs, call (508) 822-1020 or visit SEED at seedcorp.com.

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