(Updated, Nov. 5, 3:37 p.m.)
TAUNTON – The South Eastern Economic Development Corp. recently closed on six small-business loans to Rhode Island businesses under the U.S. Small Business Administration’s 504 loan and microloan programs.
The loans, totaling $462,000, provide capital to help the companies expand or launch for the first time, creating 27 new jobs, SEED said Friday.
“Business expansion and job creation are vital to the growth of the Rhode Island economy,” said Mark S. Hayward, director of the U.S. Small Business Administration Rhode Island District Office. “I congratulate these six small businesses for obtaining the resources they need to grow, and commend SEED for their continuing commitment to providing capital to the small business community.”
A Subway franchise owned by Derek Savas and Jay DeLeon received the largest SEED loan, in the amount of $302,000, for the purchase and construction of a new 1,008-square-foot sandwich shop at 48 Green End Ave. in Middletown. The project – funded under the SBA’s 504 loan program in a partnership between SEED and BankFive of Fall River – is expected to create seven new jobs, SEED said.
“We are thrilled to be a part of Derek’s sixth Subway acquisition,” said Lisa Holmes, lending team leader for SEED. “We assisted Derek with his first Subway purchase and have been fortunate to see his company grow from one to eight locations. We wish him all the best!”
The other Rhode Island companies receiving loans from SEED include:
- American Chest Co., North Kingstown: $25,000 microloan to purchase starting inventory for the distributor of American-made hardwood chests designed by owner David McLoughlin.
- Hair Heart & Soul Salon and Spa, Bristol: $50,000 microloan for working capital to expand the business owned by Sarah and Michael Redman.
- Angkor Restaurant Inc., Providence: $15,000 microloan for working capital to expand the Cambodian, Thai and Vietnamese restaurant owned by Chutema Am.
- Aten Energy Conservation LLC, Providence: $50,000 microloan for working capital to expand the contracting company, owned by Matthew Banoub, that helps homeowners optimize energy consumption.
- Rive Gauche Day Spa, Woonsocket: $20,000 microloan to purchase furniture, fixtures and equipment for the salon and day spa owned by Sophie Gras.
Under the SBA’s 504 loan program, SEED can provide up to 40 percent of the financing needed behind a bank for the purchase of buildings and equipment. SEED’s contribution can range from $120,000 to $5 million for most small businesses, and up to $5.5 million for manufacturing businesses, at a fixed interest rate for 20 years, currently set at 5.46 percent.
For more information about the 504 loan program and other SEED loan programs, call (508) 822-1020 or visit www.seedcorp.com.