By Ted Nesi
PBN Staff Writer
PROVIDENCE – The R.I. Economic Development Corporation has given four state businesses $1.75 million in new expansion capital loans from its Small Business Loan Fund, which the agency says will create more than 90 new jobs.
“Tightening credit markets and turbulent economic conditions like those we now face make the Small Business Loan Fund an especially valuable tool in our effort to support small business in Rhode Island and create jobs,” Gov. Donald L. Carcieri said in a statement. “We are very pleased that the program proved to be a good fit for these four companies.”
Linear Title & Closing Ltd. – a Middletown title agency, abstracting company and settlement solution provider – received a $250,000 loan to expand sales of the software it has developed for title review and title insurance.
LogicBay Inc. of Newport, which moved here from Cleveland in 2005, received a $250,000 loan. LogicBay has developed Web-based software that helps manufacturers design, implement and manage programs for their distribution partners.
CleanBrands LLC received a $500,000 loan. The East Providence company – which won a PBN Innovation Award in 2007 (READ MORE) – designs and distributes allergy-proof bedding products.
The fourth recipient, announced earlier this week, is InQuest Technologies Inc., which in September will be moving its headquarters to Providence from Southborough, Mass. (READ MORE) InQuest received a $750,000 loan to help fund its expansion as it increases its workforce from about 20 to 50. It was the largest loan the fund handed out in the past year.
The companies said the loans played an important role in their recent growth.
“These funds are a critical component of our expansion efforts,” said John Panaccione, CEO of LogicBay. “We will be using these funds to immediately hire additional engineering staff. Also, we will be ramping up our sales and marketing programs to expand our operations in leveraging our positive results to date.”
The EDC’s Small Business Loan Fund provides direct, fully-secured, fixed-interest loans with flexible terms of up to 10 years.
Since June 2007, it has has loaned more than $4 million to businesses in the state. The fund is financed by the U.S. Economic Development Administration, so state taxpayers assume no liability if a loan goes into default.
Other R.I.-based loan recipients in the past 12 months have included American Partners Inc. of Pawtucket; Concordia Manufacturing LLC of Coventry, to support its expansion into Warwick (READ MORE); CoreSmart Interactive LLC of Providence; Court Drive LLC; Green Grocer of Portsmouth; Jungle Jim Preschool of Warwick; KC Enterprises LLC of North Kingstown; Malco Saw Co. Inc. of Cranston; New England Syrup Co. Inc. and PSP LLC , both of Smithfield; and E.B. Thomsen Inc. of East Providence.
The R.I. Economic Development Corporation is a quasi-public agency established to promote business development, preservation and expansion in the state and undertake port projects in Rhode Island. Additional information about the EDC and its Small Business Loan Fund is available at www.riedc.com.
So why does a Mass based company receive money from the RI EDC? Because it might move to RI? Weird.