The South Eastern Economic Development (SEED) Corporation recently made a small business loan to Work Force, Incorporated. The loan enabled the business to expand and create new jobs.
“In these difficult economic times, we are very pleased to be able to provide financing to Work Force, Inc. in Walpole” stated Maria Gooch-Smith, SEED’s executive director.
Work Force, Inc. received a loan of $532,000 under the SBA 504 Program through SEED for the purchase of a 43,560 square foot building for their food processing distribution business. The loan will help create nine new jobs. The participating bank was Citizens Bank.
“Working with SEED was a great experience and everyone involved were wonderful to work with,” stated John Orfanides, co- owner and President of Work Force, Inc. “The SBA 504 Program allowed us to purchase a building, which has allowed our business to grow significantly.”
The business is located at 1167 Main Street in Walpole. Work Force, Inc. is an importer and distributer of industrial work gloves, rainwear, safety and disposable items for the food processing industry. President John Orfanides established the business in 2000 and focuses on same day shipping of orders throughout the country.
“Often the cost of financing real estate with an SBA 504 loan is less than the cost of leasing. The major benefit of the program is that it enables a small business to obtain up to 90 percent financing and keep more of its cash for operations,” stated Gooch-Smith.
Under the SBA 504 Program, SEED can provide up to 40 percent of the financing needed behind a bank for the purchase of buildings and equipment. SEED’s portion can range from $50,000 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 5.47 percent.
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.
SEED Corporation is a non-profit economic development organization certified in 1982 by the U.S. Small Business Administration. Under various programs, SEED makes loans from $1,000 up to $5.5 million to assist small businesses to grow and create jobs throughout the region.
For more information about the SBA 504 Program and other SEED loan programs, please call 508-822-1020 or visit SEED at www.seedcorp.com.
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