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Woonsocket recognizes that access to capital is one of the most important
issues concerning businesses today. Therefore, as part of its Community
Development Block Grant Program, the City offers a Small Business
Revolving Loan Program. This program is designed to assist marginal
businesses which otherwise might not qualify for conventional financing.
It provides gap financing to enhance a firm's eligibility for conventional
financing, and thus assists businesses in securing much-needed capital. The City provides loans to assist Woonsocket businesses to expand, purchase equipment, and create jobs for low and moderate income residents. All businesses locating in or relocating to Woonsocket are eligible to submit applications, which will be evaluated with respect to public benefit and financial need. Funds are typically provided in the form of direct loans, and may be applied toward property acquisition, fixed assets financing, soft costs of development or rehabilitation, and in certain cases, working capital. Loan amounts may not exceed 50% of total project cost, and recipients must agree to hire 51% low-income individuals, and to establish reasonable hiring goals for the life of the loan. Since the Small Business Revolving Loan was first established, it has provided over $2.4 million in low interest loans to small and medium size businesses. To date, more than 400 new jobs and 300 retained jobs have resulted from this program. Loans have ranged from $25,000 to $225,000. Interest rates may be lowered by the Small Business Loan Review committee, if justified by a high number of jobs, a low loan amount to job ration, and exceptional benefits. Flexible repayment terms are available, up to a maximum of 10 years, and deferments or balloon payment plans are considered upon request. Additional program details and applications may be obtained by contacting the Economic Development Director by calling (401) 767-9203 or E-mail: Jeff Polucha |
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