SEED and SBA Hold Training on SBA 504, SBA 7A and SBIC Programs for Commercial Lenders

FOR IMMEDIATE RELEASE

26 March 2008
Tamarah Barao
508-822-1020

The South Eastern Economic Development (SEED) Corporation and the U.S. Small Business Administration (SBA) will hold training on the SBA 504, SBA 7A, and the Small Business Investment Company (SBIC) programs for commercial lenders on Friday, April 4, 2008 from 8 a.m. to 12:30 p.m. at the Stoneforge Publick House in Raynham.

“In this economic climate, SBA loans can make a major difference to small businesses needing working capital or financing to buy or improve a building, or purchase machinery and equipment. SBA loans minimize the risk to the bank. In addition, the SBA 504 program increases the availability of credit since there are plenty of funds available for SBA 504 loans,” stated Maria Gooch-Smith, SEED’s executive director.

According to Gooch-Smith, the training is targeted to bankers, but is also beneficial to commercial realtors and economic development officials who are trying to obtain more advantageous financing for their small business clients.

The SBA 7A guarantee program training will be conducted by Anne Hunt, lead lender relations specialist for the SBA in Boston. SBA 504 training will be conducted by Lisa Holmes, vice president for SEED Corporation. Tom Wooters, vice president and investment manager for SEED Ventures LP will conduct the SBIC training. Robert Nelson, the SBA district director for Massachusetts will welcome trainees.

The SBA 7A training will address the basics of the program including SBA Express, latest changes to the program, loan closing and reporting requirements.  The SBA 504 training will address the nuts and bolts of the program including eligibility requirements, loan closing and funding. SBIC training will address the role of subordinated debt in assisting under capitalized growing businesses.  

According to Gooch-Smith, the SBA 7A program provides banks with a guaranty up to 85 percent which enables banks to make loans which they would not otherwise be able to make. “SBA 504 loans are attractive to small businesses purchasing or improving buildings 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 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.

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 other loan programs designed to assist start-up and expanding small businesses. SEED can provide loans from $5,000 to $4 million.
For more information on the training or SEED and its programs, please call 508-822-1020 or visit www.seedcorp.com.

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