The South Eastern Economic Development (SEED) Corporation has recently closed on two small business loans totaling $759,000 to Guilded in Newport and Small Axe Productions in Charlestown. The loans will enable the businesses to start-up, expand, and create eleven new jobs.
“Seeing Rhode Island small businesses utilize the SBA Loan Program to make themselves more efficient and expand the job market in the state is really wonderful,” stated Mark S. Hayward, SBA Rhode Island District Director. “We are thrilled that our lending partners at SEED were able to help these great businesses expand.”
Gilded Newport, LLC received a $734,000 loan under the SBA 504 Program for the purchase of two Victorian properties at 21 and 23 Brinley Street in Newport, formerly known as the Brinley Victorian Inn. The loan will help create ten new jobs. The lending team on the project was Lisa Holmes from SEED and Paul DiSanto of BankNewport, which participated in the financing.
Owners Leigh Blood and Rich Cooper offer guests a unique B&B experience by combining the architecture of Newport at the turn of the century with modern urban décor. The new location includes 17 guestrooms and suites, a billiard room, and a lounge, all uniquely designed by Lark Hotels.
The boutique inn also offers complimentary breakfast, as well as an afternoon BYOB mixer bar in the courtyard. Conveniently located one mile from the waterfront, Gilded provides guests with easy access to popular Newport tourist attractions such as First Beach, the Cliff Walk, and 12-Mile Drive. Visit their website a www.gildedhotel.com.
SEED provided Small Axe Productions, LLC with a $25,000 SBA micro loan for the purchase and installation of a solar panel system. The new equipment will allow the business to expand, increase energy efficiencies, and create one new job. The SEED Lender was Tamarah Bacon.
Small Axe Productions was established in 1974 as a novelty shop and has since evolved into a department store, owned and operated by David and Linda Turano. David and Linda originally focused on stained glass work, glass blowing, and pottery, but have expanded into hand-crafted wares, jewelry, clothing, musical instruments, and tapestries.
The business is located at 4820 Old Post Road as a part of The Fantastic Umbrella Factory complex and is open Monday through Friday from 11 a.m. to 5 p.m. as well as weekends between 10 a.m. and 5 p.m.
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 with a life of 10 years. 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 4.76 percent.
As an SBA micro lender, SEED can also make loans from $1,000 to $50,000 for working capital, inventory, machinery and equipment, furniture and fixtures and refinancing business credit card debt. The interest rate is at 6 percent fixed for six years with no prepayment penalty.
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.
For more information about the SBA 504 Program and other SEED loan programs, please call 508-822-1020.
# # #