TAUNTON – The South Eastern Economic Development Corp. recently issued $170,000 worth of small-business loans to an information technology provider and an auto repair shop in Rhode Island.
SEED, a certified U.S. Small Business Administration lender, said the money will be used to expand and create new jobs.
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Freedom Technology Solutions Inc. in Johnston received $149,000 under the SBA 504 Program for the purchase of a 5,805 square foot office building for their information technology business. The loan will help create three new jobs. The participating bank was Bank of America.
Quad’s Automotive Repair Inc. in Narragansett received a loan of $20,000 under the SBA Micro Loan Program for working capital for their automobile repair shop. The loan will help create one new job.
“In these difficult economic times, we are very pleased to be able to provide financing to Freedom Technology Solutions Inc., Quad’s Automotive Repair, Inc., and other small businesses in Rhode Island,” said Maria Gooch-Smith, SEED’s executive director.
“I congratulate Freedom Technology Solutions and Quad’s Automotive Repair for obtaining the financing they needed to grow their businesses,” said Mark S. Hayward, director of the SBA’s Rhode Island district office. “It is particularly important to note that this funding also will help to create three jobs.”
Under the SBA 504 program, SEED can provide up to 40 percent of the financing needed for the purchase of buildings and equipment. SEED’s portion can range from $80,000 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 5.8 percent.
SEED can also lend up to $200,000 for working capital and other uses including repayment of high interest credit card debt used for the business. The term on the loans is up to 10 years with longer repayment periods, if necessary. Fixed interest rates range from 5 percent to 6 percent, depending on whether there is bank participation.
