Three firms share $420K in EDC loans

PROVIDENCE — Three local businesses will receive $420,000 worth of loans from the R.I. Economic Development Corporation’s Small Business Loan Fund, the agency said yesterday.

Two of the firms, American Printing of Rumford and Narragansett Imaging of North Smithfield, will receive $150,000 loans. The third, Modulus Furniture of Pawtucket, will receive a $120,000 loan.

J. Michael Saul, interim director of the EDC, described the Small Business Loan Fund (SBLF) as “one of our most successful programs.”

The loans — which carry fixed interest rates and flexible repayment terms that can extend for up to 10 years — are provided directly by the agency and can be used for acquisition and improvements of land, buildings and equipment, new construction, and working capital. The program was established in 1986.

In 2007-08, the SBLF funded 15 loans worth a total of $2.8 million. It has already given out more than that in the current fiscal year, which ends June 30, with $3 million in loans having gone out to 13 companies. The EDC says the loans have supported the creation of 113 jobs.

The maximum loan amounts are $500,000 for manufacturing companies and $250,000 for non-manufacturing companies.

“These loans provide local businesses with the crucial capital they need to grow their businesses and add new jobs,” Saul said. “Small businesses account for more than 90 percent of the state’s businesses and RIEDC is proud to be able to assist these ventures as they grow and adapt.”

Paul Carroll, president of American Printing, said he would use the loan as working capital. The company - which created 50 manufacturing jobs and purchased a new building last year - hopes to add five more employees in the next year.

“I was pretty excited to receive the loan,” he said. “It’s challenging times, and we needed the additional funds.”

Modulus Furniture said it would use its loan to help pay the cost of moving from its old facility in Providence to a new location in Pawtucket. The company also expects to add 10 new employees to its current work force of 37.

Modulus also has received financial assistance from the Pawtucket Business Development Corporation and Rhode Island Manufacturing Extension Services. “We really felt the helping hand,” said Nicholas Besdin, Modulus’ director.

Bill Ulmschneider, president of Narragansett Imaging, said his company planned to use the loan to increase its portfolio of diagnostic medical imaging products.

The R.I. Economic Development Corporation is a quasi-public agency. Additional information on the Small Business Loan Fund is available at RIEDC.com.