The South Eastern Economic Development (SEED) Corporation has recently closed on loans to three Rhode Island businesses: Creative Child in Coventry, Roasted and Brewed in Newport; and Quad’s Automotive Repair Corp. in Narragansett. The loans enabled the businesses to expand and create nine new jobs.
Mark S. Hayward, the U.S. Small Business Administration’s Rhode Island District Director, stated that starting and growing small businesses is vital to a healthy economy. “Entrepreneurs often need funding to turn their dreams into realities. The SBA is proud to offer lending assistance to these great companies through our lending partner, SEED,” said Hayward.
Creative Child, Inc. received a $30,000 loan under the SBA Micro Loan Program for working capital to expand the child day care business. Owner Lori Lanoue started the child day care in 2006 with six children. Currently, she has 160 children enrolled.
“I have worked with SEED on two separate projects and found the staff to be extremely professional,” stated Lanoue. “My experience dealing with Lisa Holmes and her team was very refreshing. Their knowledge and experience superseded my expectations. I would not hesitate on calling on SEED again for my future needs.”
Creative Child offers services to infants and toddlers ages three to five. The day care also provides a half day program for kindergarten students and before and after school care for school age students. Their website is www.creativechildri.com.
Roasted and Brewed, LLC received $114,000 under the SBA 504 Program for the purchase of a retail space and equipment for their start-up coffee bar in Newport. The business also received a $15,000 working capital loan through SEED to assist in additional start-up expenses.
Owner Boiana Georgieva hopes to provide the highest quality coffee and espresso in the area, as well as some organic naturally brewed beverages, smoothies, protein shakes and fresh squeezed juices. They will also offer sandwiches, pastries, fresh salad and snack box options. The coffee bar will be located at 415 Thames Street, in the heart of Newport. The project will create three new jobs. The lending team on the project was Lisa Holmes from SEED and Cristina Feden of Savings Institute Bank and Trust.
Quad’s Automotive Repair Corp. received a $50,000 loan under the SBA Micro Loan Program for working capital and equipment. Peter and Michelle Laurie started the business 18 years ago doing strictly exhaust work in a part-time capacity. They formed a corporation in 2009, and have significantly grown the business by serving and repairing domestic and foreign cars. In addition they provide preventative maintenance and repairs, custom exhaust fabrication and fire sales and repairs. Quad’s Automotive Repair is located at 270 Point Judith Road in Narragansett. Their website is www.quadsautomotive.com.
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 $120,000 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 5.07 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. SEED is also a Community Development Financial Institution (CDFI) under the U.S. Department of the Treasury. 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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