TAUNTON – The South Eastern Economic Development Corporation (SEED) is expanding its services in Rhode Island.
The nonprofit, which last month received approval from the U.S. Small Business Administration (SBA) to offer micro-loans to Rhode Island small businesses, is now seeking office space in Providence, according to Maria Gooch-Smith, SEED’s executive director.
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“We have just been approved by the SBA to make micro-loans in all of Rhode Island,” she told the Providence Business News this morning.
The SBA micro-loans generally are available in amounts up to $35,000 to what Gooch-Smith called “mom-and-pop-type operations” with “little collateral” that cannot obtain bank financing. SEED will offer such loans for terms of up to six years at a 6.9-percent fixed interest rate, she said.
“We can go above $30,000,” she added. “We can offer loans up to $100,000, using SEED funds [as well as SBA money].” She stressed, however, that applicants must show they are able to repay the money. The agency now has a total of $400,000 available for micro-loans, but Gooch-Smith said SEED can access up to $3 million for this program.
In December, SEED granted one micro-loan to a Rhode Island business, she noted. Applications may be submitted online, at www.seedcorp.com, or by calling the agency at (508) 822-1020.
SEED has been in operation for 26 years – and Gooch-Smith has been there for all 26. The agency, which currently lists 14 employees, received the 2008 SBA Excellence in Lending Award for its service to small businesses.
In most counties of Rhode Island – except Washington County, for jurisdictional reasons – SEED also offers SBA 504 loans of up to $4 million, generally for larger businesses in need of capital funds for such expenditures as equipment, according to Gooch-Smith. The 504 loans are offered at a 6.5-percent fixed rate for a 20-year term.
Asked why the agency is expanding its services in the Ocean State, Gooch-Smith replied that its local SBA office recently extended its coverage area and “our board feels that we should provide the same services to every area that we cover.”
Also, the SBA asked SEED to take on Rhode Island because “we have a lot of experience” making business loans and “a very successful program,” with a portfolio of more than $100 million and few defaults, she said. “We work with our customers to keep them current.”
SEED is working with the SBA’s Rhode Island District office in Providence to coordinate plans for its expansion into the state, Gooch-Smith said. It also will be partnering with such groups as the Greater Providence Chamber of Commerce and the R.I. Small Business Development Center at Johnson & Wales University in Providence on other aspects of the move.
The nonprofit regularly offers free business seminars in southeastern Massachusetts, and will be doing the same in Rhode Island, according to Gooch-Smith. The seminars will be “very basic” classes in starting and operating a business.
“We want to make sure that any business that is viable can continue to operate,” she said.
The South Eastern Economic Development Corporation is a U.S. Small Business Administration-certified nonprofit established in 1982 to assist new and expanding small businesses in southeastern Massachusetts. (The agency is associated with Taunton-based SEED Venture Finance LLC – the manager of small business investment company SEED Ventures LP – a private firm that specializes in debt and equity investments in small and mid-sized businesses in Rhode Island and nearby Massachusetts.) To learn more, visit www.seedcorp.com.
