SEED Makes 73 Small Business Loans Totaling $19.3 million in 2018

October 22, 2018 – In 2018, South Eastern Economic Development (SEED) Corporation made 73 small business loans totaling $19.3 million and assisting in the creation of 306 new jobs. These loans were either made in participation with the region’s financial institutions to meet a financing gap, or as direct loans to small businesses not able to obtain conventional financing.

“Without SEED’s gap loans, many small businesses would not have been able to start-up, expand and create new jobs in the region,” explained Maria Gooch-Smith, SEED’s executive director. SEED approved and closed 29 Small Business Administration (SBA) 504 loans totaling $16.3 million to enable small businesses to purchase or improve their own building, and acquire heavy machinery and equipment. SEED also made 44 small business loans totaling $2.9 million. These loans ranged from $10,000 to $157,000.

In 2018, SEED received a $700,000 grant from the Community Development Financial Institutions Fund (CDFI) under the U.S. Department of the Treasury which enabled SEED to continue making small loans. SEED also received $78,500 in contributions from 11 financial institutions in the region for a loan loss cash reserve which enabled SEED to borrow an additional $500,000 from SBA for micro loans up to $50,000. In addition, SEED received another $200,000 interest free loan from RI Commerce Corporation for small business loans in RI.

“We would like to thank the State of Massachusetts, RI Commerce Corporation, and the banks which provided contributions to SEED: BayCoast Bank; Bridgewater Savings Bank; Bristol County Savings Bank; Brookline Bank; Cambridge Savings Bank; Cape Cod Five Cents Savings Bank; Dedham Savings Bank; Eastern Bank; HarborOne Bank; Middlesex Savings Bank; and Rockland Trust Company,” added Gooch-Smith.

The 73 loans made by SEED in 2018 included: 15 loans closed and 14 approved under the SBA 504 Program for a total of $16.3 million; and 44 small loans ranging from $10,000 to $157,000 for a total of $2.9 million.

SBA 504 loans are made in participation with financial institutions, and provide an attractive option for small businesses undertaking real estate projects, and financing heavy machinery and equipment. The down payment is generally only 10 percent, and the interest rate is below market and fixed for 20 or 25 years. A participating financial institution provides 50 percent and SEED’s SBA 504 loan provides 40 percent.

According to Gooch-Smith, SEED’s small loans up to $250,000 assist small businesses which can’t qualify for conventional financing alone due to tight cash flow, insufficient collateral, start-up status, or lower personal credit scores, but are viable community businesses which create jobs and are important to the region’s economy.

SEED’s flexible loans have terms up to 10 years and payment schedules up to 20 years; fixed interest rates from five to six percent; can be used for any business purpose; and are often made in participation with a financial institution to fill a financing gap.

This past year, SEED held 47 free Entrepreneurial Workshops throughout the region attended by 684 existing and prospective entrepreneurs, and provided business technical assistance to another 482 individuals. SEED’s workshops were sponsored by the following:  Bridgewater Savings Bank; Dedham Savings Bank; Eastern Bank; Martha’s Vineyard Savings Bank; and Rockland Trust Company.  SEED worked closely with the Small Business Development Center, chambers of commerce, and community organizations to present the workshops.

SEED is a non-profit corporation established in 1982 to assist small businesses in the region. SEED makes loans from a $1,000 micro loan to a $5.5 million SBA 504 loan to assist small businesses to grow and create jobs. In 36 years, SEED has made 2,066 loans totaling $362 million, and assisting in the creation of 12,592 new jobs.

For a loan application and more information about SEED’s loan programs, please call 508-822-1020 or visit SEED at

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