SEED Wins National "2008 SBA Excellence in Lending Award"

FOR IMMEDIATE RELEASE

21 March 2008
Tamarah Barao
508-822-1020

The South Eastern Economic Development (SEED) Corporation announced today that they have been selected by the U.S. Small Business Administration (SBA) as the recipient of the “2008 SBA Excellence in Lending Award”.

“I am so pleased that SEED is receiving this national recognition for the tremendous job done by a dedicated, experienced and knowledgeable staff over more than two decades. SEED has built a fine loan portfolio, now exceeding $100 million, clearly demonstrating that they can get the job done for the small business community in our region,” stated Jim McEvoy, SEED’s chair and co-regional president for TD Banknorth on Cape Cod.

Robert Nelson, Massachusetts SBA District Director, stated “We commend SEED for their commitment to the small business community and the SBA 504 Program which has earned them national recognition.  This is a well-deserved honor and is indicative of SEED’s efforts to assist small businesses and stimulate the economy.”          

“This is a great honor for the SEED staff, and board and committee members who have provided invaluable guidance and advice over the last 25 years. Only two SBA 504 lenders in the country received this award. SEED is the recipient in the category of active SBA 504 loan portfolio under $100 million in 2007. SEED’s selection was based on portfolio performance and growth in loan volume” explained Maria Gooch-Smith, SEED’s executive director.

According to SBA Administrator Steven Preston, award winners demonstrate “a valued commitment in providing small businesses with greater access to capital.” Preston will be presenting the “2008 SBA Excellence in Lending Award” to SEED in New York City on April 25, 2008 during “Small Business Week.”  

In 2007, SEED worked with the region’s banks to approve 56 SBA 504 loans and close on another 55 loans, for a total of 111 loans representing $42.9 million. These loans leveraged $55.4 million in bank financing and private funds, and assisted with the creation of 637 new jobs.

According to Gooch-Smith, the SBA 504 loan program enabled small businesses in the region to grow and create jobs by providing long term, below market, fixed rate financing for the purchase and improvement of buildings. These businesses ranged from manufacturing to retail establishments, professional offices, restaurants, motels, day care centers, car washes, car dealers, gas stations, and convenience stores.

“SBA 504 loans are attractive to small businesses because of the low fixed interest rate for 20 years, now just around 6 percent, the smaller down payment of 10 percent, and the ability to include other related costs in the financing,” explained Gooch-Smith.

“In this economic climate SBA 504 loans also minimize the risk to the bank and increase the availability of credit since there are plenty of funds available for SBA 504 loans,.” added Gooch-Smith.

Under the SBA 504 loan program, SEED provides up to 40 percent of the financing at a low fixed interest rate for 10 or 20 years. A bank selected by the small business provides the first 50 percent at conventional terms and rate, and the small business contributes 10 percent .

SEED is non-profit regional economic development corporation certified in late 1982 by SBA. In addition to the SBA 504 loan program, SEED runs three other loan programs designed to assist start-up and expanding small businesses. Under all its loan programs, SEED can provide loans from $5,000 to $4 million.

SEED also runs a business assistance program which includes monthly entrepreneurial workshops. For more information on SEED and its programs, please call 508-822-1020 or visit www.seedcorp.com.

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