SEED boosts microloans to $50K

TAUNTON – The South Eastern Economic Development Corp. says the limits on its U.S. Small Business Administration microloans have increased from $35,000 to $50,000.
“The increase in the microloan program will go a long way to ensure small businesses have enough funds to meet their needs,” said Laurie Driscoll, SEED’s assistant vice president and commercial loan officer. “As a result, we hope to assist many more businesses with this program.”
The microloans are available to various types of businesses, including new ones. The loans, which have terms of up to six years, can be used to purchase equipment, furniture and fixtures, or for working capital and paying off high-interest-rate credit cards used for the business. The current interest rate is 6 percent fixed with no prepayment penalty.
As the designated microlender for Rhode Island, SEED has access to $5 million from the SBA for microloans. So far, SEED has made 14 microloans totaling $403,000.
SEED said small-business owners need to have at least a 600 credit score and be able to explain delinquencies. The agency will review the borrower’s entire household income to see if there is enough to repay the loan.
For information about the SBA Micro Loan Program, free entrepreneurial workshops and other SEED loan programs, call (508) 822-1020 or visit SEED at www.seedcorp.com.