The South Eastern Economic Development (SEED) Corporation recently made a micro loan to Archbeauty Skin Care Salon and Boutique, LLC in Newport to enable the small business to start-up and create two new jobs.
“We are very pleased to provide the working capital needed by Archbeauty Skin Care Salon
to start up their skin care salon and boutique on Memorial Drive in Newport,” stated Laurie Driscoll, AVP and commercial loan officer for SEED’s Micro Loan Program.
“We are grateful to SEED Corporation and the U.S. Small Business Administration for the Micro Loan Program, which helps local businesses succeed and create new jobs in our community. SEED recognizes the role of start-up small businesses and we sincerely appreciate the support,” stated Sara Schlieff-Ross, co-owner of Archbeauty Skin Care Salon.
“Congratulations to Sara and Derek on obtaining an SBA micro loan to start their new business venture,” said Mark S. Hayward, director of the SBA Rhode Island District Office. “The Micro Loan Program not only provided the vital start-up capital they needed to launch their enterprise, but also has a built-in technical assistance element to make certain they grow and succeed.”
Archbeauty Skin Care Salon is located at 18 Memorial Drive West in the heart of the historic district in Newport. The full-service beauty boutique offers a variety of services including facials, anti-aging treatments, a brow bar, body treatments, waxing, nails and classes on skin care and make-up application. In addition, the salon offers a full line of products that complement their spa services. Their website is www.archbeauty.com.
Owners Sara Schlieff-Ross and Derek Ross celebrated their Grand Opening on May 28, 2010. Sara has been in the beauty industry for over 17 years. She has built, managed, and operated spas in various parts of the country and has received several awards.
Micro loans up to $35,000 are available for existing and start-up small businesses including home based businesses. Loan funds can be used for: working capital, inventory, machinery and equipment, furniture and fixtures and refinancing business credit card debt with high interest rates. The term on the loans is up to six years and the current rate is 6 percent fixed.
SEED Corporation became the Intermediary for the SBA Micro Loan Program in Rhode Island in March 2009. So far, SEED has made 11 micro loans to small businesses throughout Rhode Island including: AG Services in Providence; Moody Machine Products in Providence; Glow Oil in Lincoln; Curves in Portsmouth; JM Painting and Plastering in Cranston; Castle Awards in East Providence; Groh Associates in Warwick; Continental Travel Agency in Smithfield; Kathleen’s Wildflower Florist in Barrington, and Newport Potters Guild in Newport.
SEED can also lend up to $200,000 for working capital and other uses. The term on the loans is up to 10 years with longer repayment periods, if necessary. Interest rates range from 5 percent
to 6 percent fixed depending on whether there is bank participation.
According to Laurie Driscoll, small business owners need to have at least a 600 credit score and be able to explain delinquencies. She added that SEED will be reviewing the small business owner’s entire household income to see if there is enough income to repay the loan.
“SEED can be flexible with repayment terms and collateral, but we expect small businesses to stand behind their loans and will take all available collateral including a second or third position on the small business owner’s home, whether there is equity available or not,” she explained.
The application process includes filling out SEED’s two page application form, and providing federal income tax returns for three years for the small business and the owner. The application and list of items needed is available on SEED’s website, www.seedcorp.com.
SEED is a non-profit economic development corporation certified by SBA in 1982 to assist small businesses in the region. Under various loan programs, SEED makes loans from $1,000 to $4 million to assist small businesses to grow and create jobs.
For more information about the SBA Micro Loan Program, free entrepreneurial workshops and other SEED loan programs, please call 508-822-1020 or visit SEED at www.seedcorp.com.
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