Winter Weather Recovery Loans at 5% Fixed

TAUNTON, MA –  South Eastern Economic Development (SEED) Corporation has joined the U.S. Small Business Administration (SBA) to provide assistance to small businesses with winter weather recovery loans.

As an SBA Micro Lender and Community Advantage Lender, SEED can meet the various financing needs of most small businesses, and is making winter weather recovery loans fixed at 5% for the term of the loan.

“This past winter was particularly difficult for many small businesses.  Whether it’s working capital, refinancing of credit cards used for operating needs, or replacement of furniture and equipment, SEED is here to help,” stated Maria Gooch-Smith, executive director of SEED Corporation.  “Our mission is to provide financing which will address the needs of small businesses in our region,” added Gooch-Smith.

SEED can lend up to $50,000 under the SBA Micro Loan Program at 5% fixed for up to six years.  The funds can be used for working capital, inventory, machinery and equipment, furniture and fixtures, and refinancing of business credit card debt.  Eligible businesses include; manufacturing, retail, wholesale, and service businesses located in Suffolk, Middlesex, Norfolk, Plymouth, Bristol, Barnstable, Dukes, and Nantucket counties in Massachusetts and all of Rhode Island.

Under the small loan program, SEED can also lend up to $200,000 at 5% fixed for up to 10 years with amortizations up to 20 years.  The use of funds includes working capital, equipment purchases, leasehold improvements, and real estate for the use of the business.  Under this program, SEED is able to mimic the SBA 504 Program for small real estate projects.

Loan applicants will be required to submit the two-page SEED application along with a $50.00 processing fee, the past two years of business tax returns and personal tax returns, and interim financial statements (in-house) for the business. Tax returns are needed for owners with 20% or more of ownership.  The application is available on SEED’s website www.seedcorp.com.

SEED requires that business owners have credit scores of 600 or more and global repayment ability considering all business and personal income and expenses.  SEED will take a collateral position on business assets and any real estate owned by the principles (20% or more of ownership).  If no collateral is available, loans can be made up to $10,000 with acceptable repayment ability and good credit.  Credit, cash flow, and collateral weaknesses can be mitigated by an outside guarantor.

The South Eastern Economic Development (SEED) Corporation is a non-profit corporation certified by the United States Small Business Administration (SBA) to administer several SBA financing programs.  SEED makes loans from $1,000 under the SBA Micro Loan Program to $5 million under the SBA 504 Program. SEED was established in 1982 to improve the economy of southeastern Massachusetts by helping small businesses get started, grow and create jobs.
Today, SEED covers all of MA and RI.  For more information about SEED’s business assistance and loan programs, please visit www.seedcorp.com.

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