The South Eastern Economic Development (SEED) Corporation has announced that it has joined a national Veteran Pledge Initiative to cut costs for SBA 504 loans and SEED loans to Veterans.
“We are very proud to join this worth while initiative to reduce costs for veteran owned businesses. SEED has committed to cutting processing fees by half a percent,” stated Maria Gooch-Smith, SEED’s executive director.
According to Gooch-Smith, the Veteran Pledge Initiative is a commitment by top SBA national, regional and community lenders to collectively increase their lending activity to veterans by five percent per year for the next five years.
Veteran owned businesses are those which are 51 percent owned by U.S. veterans who have served on active duty and have been honorably discharged from the military. The fee reduction will apply to SBA 504 loans and SEED small loans up to $200,000.
The SBA 504 Program enables small businesses to purchase real estate and/or machinery and equipment with a life of 10 years, and take advantage of a down payment as low as 10 percent and a low fixed interest rate for 20 years, currently 4.5 percent.
SEED’s small loans range from $1,000 under the Micro Loan Program to $200,000 under the Revolving Loan Fund Program for a variety of business uses including working capital. Interest rates range from 5 percent fixed with bank participation to 6 percent fixed without. Loan terms go up to 10 years with long amortization schedules, as necessary.
For more information on the Veterans Pledge Initiative and SEED’s loan programs please contact SEED at (508) 822-1020 or visit www.seedcorp.com.
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