Areas Served: Barnstable, Bristol, Dukes, Middlesex, Nantucket, Norfolk, Plymouth and Suffolk counties
SEED established the Revolving Loan Fund with grants from the U.S. Economic Development Administration (EDA) and the State of Massachusetts.
Since 1984 SEED has received a total of $4 million in grants to provide gap financing to small businesses in Barnstable, Bristol, Dukes, Middlesex, Nantucket, Norfolk, Plymouth and Suffolk counties.
Under a special grant from the EDA through the state of Massachusetts, SEED extends loans to the fishing, and fishing related industries and also administers an EDA funded pool for the City of Brockton.
Bank of America provided the match for the Brockton fund.
Loan Amount Under the RLF Program, SEED provides loans up to $200,000 which can be used as the down payment on a larger project.
The SEED portion of the project is generally 35 percent or less, although in cases where there is a larger financing gap, SEED’s portion can be greater.
Eligible Businesses Manufacturing, retail, wholesale and service businesses: net worth not in excess of $2 million; less than $750,000 average net profit after taxes during the previous two years.
Eligible Projects Acquisition of land and buildings; construction and/or renovation; equipment and furnishings; and working capital.
There has to be a demonstrated need for the loan.
Loan Term Up to 10 years with options to defer principal payments, amortize over longer periods or establish seasonal schedules as needed.
Loan Rate Generally below market and fixed for the term.
Check current interest rates.
Loan Collateral All appropriate business assets, personal guaranties and personal assets as necessary to collateralize the loan.
Job Requirement SEED generally requires that a business create one job for each $10,000 of SEED investment.
On a $200,000 project, in which SEED is contributing $50,000, SEED would like to see five new jobs created in the next two years.
SEED will consider job retention and other economic development impact in lieu of jobs.
Contact InformationSouth Eastern Economic Development Corporation
Address: 80 Dean Street
City: Taunton
State: Massachusetts
Website:
http://seedcorp.com/loan-programs/revolving-loan-fund/
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