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Date ArticleType
1/8/2013 Press Releases
SBA LENDING IN RHODE ISLAND TOPS $18 MILLION SINCE OCTOBER 2012

 

         News Release

RHODE ISLAND DISTRICT OFFICE

 

Release Date:  January 4, 2013

Contact: Norm Deragon (401) 528-4561

Release Number: RI13-01

Internet Address: www.sba.gov/ri

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SBA LENDING IN RHODE ISLAND TOPS $18 MILLION SINCE OCTOBER 2012

 

Providence, R.I. – Rhode Island small business loans approved by the U.S. Small Business Administration have exceeded $18 million dollars for the last quarter of calendar year 2012. 

     Between October 1 and December 31, 2012, sixty four firms were approved for SBA-guaranteed loans. Those include 64 loans for $15.5 million under the agency’s popular 7(a) program—a 60 percent increase over the same period last year.  The loans were obtained through a commercial lender and guaranteed by SBA. 

     There were 9 loans approved under the SBA 504 loans program, a decrease of four loans compared to the same period last year.  This program provides long-term, fixed rate subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings, and equipment.  The loans are provided by a Certified Development Company and banks and other lenders. The total capital provided to Rhode Island small businesses by the CDCs and participating lenders totaling $5.5 million.

     “I am pleased that SBA is making a difference for these 64 Rhode Island small businesses,” said Mark S. Hayward, director of the SBA Rhode Island District Office.  “Providing more than $18 million dollars in capital and the creation and retention of nearly 700 jobs will make a significant contribution toward improving the Rhode Island economy.”

     Of the 64 firms, 18 are new businesses with $2.7 million in approved loans.

     Most of the loans during the quarter went to businesses in Warwick where 11 loans were approved for $3.8 million. Rounding out the top five communities are: Johnston with six loans for $1.57 million; Cranston, 6 loans for $1.1 million; Providence, six loans for $$633,000; and Narragansett with 5, loans for $1.3 million.

     The top five 7(a) lenders are:

  1. BankRI                                   20 loans        $3,136,000
  2. Coastway Community Bank                 10              $1,878,000
  3. Freedom Bank                            5               $1,563,000
  4. Sovereign Bank                          4               $1,642,000

5   Webster Bank                                4                  $367,000

 

     Three certified development companies produced three 504 loans each. They are New England Certified Development Corporation ($990,000), Ocean State Business Development Authority ($872,000), and Bay Colony Development Corporation ($682,000).

     The top two 504 participating lenders are Bank Newport with 4 loans totaling $1.1 million and Coastway Community Bank with 2 loans totaling $710,000.

     The SBA Rhode Island lending and lending by Rhode Island city and town reports are available on the Rhode Island District Office Web site at www.sba.gov/ri.  Select the reports in the “What’s New” section.

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