RIEDC Awards Small Business Loan Funds to Three Local Companies
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Loans support business growth at American Printing, Modulus Furniture and Narragansett Technologies
The Rhode Island Economic Development Corporation (RIEDC) has awarded a total of $420,000 in loans from the Small Business Loan Fund (SBLF) to support job growth at three local companies.
American Printing, of Rumford, and Narragansett Imaging, of North Smithfield, each received a $150,000 loan from the SBLF. Modulus Furniture, of Pawtucket, received a $120,000 loan.
“The Small Business Loan Fund is one of our most successful programs,” said J. Michael Saul, interim executive director of the RIEDC. “These loans provide local businesses with the crucial capital they need to grow their businesses and add new jobs. 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. Their success is key to Rhode Island’s success.”
The SBLF provides direct, fully-secured loans of up to $500,000 for manufacturing businesses and $250,000 for non-manufacturing businesses. The loans can be used for acquisition and improvements of land, buildings and equipment, new construction, and working capital. The loan funds cover an average of 25 percent of a project’s costs. The interest rates are fixed and the repayments terms are flexible and range up to 10 years.
"The Small Business Loan Fund has been one of our most successful economic programs, providing working capital for local companies who might not have access to more traditional lending programs," said Governor Donald L. Carcieri. "These three companies continue to make a commitment to expand and grow jobs in Rhode Island, and it is critical that we support and applaud their efforts."
In the 2008 fiscal year, the SBLF issued 15 loans totaling $2.8 million to support small and mid-sized Rhode Island companies. Already in this fiscal year, the SBLF has issued $3 million to 13 companies, supporting the creation of 113 new jobs.
American Printing is a full-service, single-source printing company with Fortune 100 clients throughout New England. Its services include brochures, direct mail, design services, assembly and shipping. The $150,000 SBLF loan will be used as working capital to support growth of the company. American Printing plans to add five employees to its workforce within the year.
“I was pretty excited to receive the loan,” said Paul Carroll, president of American Printing. “It’s challenging times and we needed the additional funds. We’re using the loan to further expand our fulfillment and e-store services for clients. It also allows us to hire additional workers for manual-labor jobs.”
Modulus Furniture received $120,000 from the SBLF in working capital to help support, in part, the company’s move from Providence to a modern facility in Pawtucket, as well as its marketing efforts. The company plans to add 10 employees to its 37-person staff within the year. Modulus Furniture manufactures upholstered furniture for retail, hospitality and health care customers. The Pawtucket Business Development Corporation and the Rhode Island Manufacturing Extension Services (RIMES) also supported Modulus’ move to Pawtucket.
“We’re using this money to expand our marketing campaign,” said Modulus Furniture Director Nicholas Besedin. “Now we have the money to update our Web site, send mass mailings to hotels and stores in New England and make new brochures. We really felt the helping hand.”
Narragansett Imaging, which manufacturers and distributes imaging systems such as high-precision camera tubes, received a $150,000 SBLF loan for working capital to expand its portfolio in diagnostic medical imaging products.
“This loan helps us increase our revenue base by introducing these products into the marketplace,” said Narragansett Imaging President Bill Ulmschneider. “In the future our objective is to hire new staff to assemble these products.”