SEED RECEIVES GRANT FROM U.S. TREASURY
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI) FUND
The South Eastern Economic Development (SEED) Corporation has been awarded a $600,000 grant from the Community Development Financial Institution (CDFI) Fund under the U.S. Department of the Treasury.
“We are very pleased to receive this grant which will increase SEED’s total capital to $12.3 million for small gap loans up to $250,000, and enable SEED to continue meeting the financing needs of start-up and expanding small businesses in underserved markets, and economically distressed areas in our region,” stated Maria Gooch-Smith, SEED’s executive director.
According to Gooch-Smith, since being certified as a CDFI by the U.S. Treasury in 2010, SEED has received four CDFI Fund grants totaling $3.9 million. These grants have been matched with another $1.25 million from the State of Massachusetts. In addition, SEED has received over $300,000 in contributions from the region’s financial institutions which served as matches for the CDFI grants, and $1.1 million in interest free loans from RI Commerce Corporation for small business loans in Rhode Island.
“SEED’s small loans are usually made in conjunction with a financing institution, but can be made alone depending on the situation and use of funds. SEED can be flexible with repayment terms, collateral, and personal credit scores, but expects that jobs will be created or retained with these loans,” explained Gooch-Smith.
According to Gooch-Smith, SEED’s loans can be used to purchase real estate, make leasehold improvements, acquire machinery and equipment, and furniture and fixtures, and for working capital. The term on the loans is up to 10 years with longer repayment terms, and the current rate is 5 percent fixed for the term of the loan.
As an Intermediary Lender under the U.S. Small Business Administration (SBA) Micro Loan Program, SEED also has access to $5 million for loans up to $50,000, which can be used for working capital, equipment, and furniture and fixtures for start-up and existing small businesses.
The loan application process includes filling out SEED’s application form, and providing federal income tax returns for two years for the small business and the owner. The online application and list of items needed is available on SEED’s website www.seedcorp.com.
Over the past 36 years, SEED has made 2,066 loans totaling $362 million, leveraging $746 million in private funds, and assisting in the creation of 12,592 new jobs. SEED is a non-profit corporation established and certified by SBA in 1982 to assist small businesses in the region south of Boston. Under various loan programs including the Micro Loan Program and the SBA 504 Program, SEED makes loans from $1,000 to $5 million to assist small businesses to grow and create jobs.
SEED also provides technical assistance to small businesses and works with other economic development organizations and financing institutions in the region to ensure that individuals who are committed to owning and operating a small business are able to obtain the assistance they need to be successful.
For more information about SEED’s loan programs, and free entrepreneurial workshops, please call 508-822-1020 or visit SEED at www.seedcorp.com.
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