In A Boost To Small Business Lending, Seedco Financial Receives $2 Million In Loan Funding

Online, December 23, 2010 (Newswire.com) - Seedco Financial, a not-for-profit Community Development Financial Institution, has been awarded $2 million in loan funding from the Empire State Development Corporation's Small Business Revolving Loan Fund, a $50 million fund designed to create economic activity by providing greater access to capital for small businesses. The award, part of the New York State Small Business Revolving Loan Fund Allocations, was announced by Governor David A. Paterson and Empire State Development (ESD).

"Small businesses are key engines of economic activity and an important source of job creation. This is a significant investment in New York's economic growth as we will use the capital to fund our traditional small business loans and develop new products," said Edwin Hong, Interim President of Seedco Financial, which is headquartered in New York. "This in turn will benefit the hundreds of small businesses we support across New York City's Economic Development Region."

Seedco Financial will deploy capital from this award to fund small business loans in specific areas where capital needs are greatest -- for small businesses moving beyond the start-up phase needing larger loans for stabilization and expansion activities, and to allow more established small businesses to conduct substantial expansion activities.

The organization intends to use the capital to develop new, innovative financial products that provide enhanced liquidity and flexibility to small businesses through new services such as a revolving credit line with a term out feature and contract financing loans. Seedco Financial also plans to expand its technical assistance services to support borrowers to help them maximize the impact of financing, and will launch a pilot lending program in Nassau and Westchester Counties.

Seedco Financial is an alternative lender that promotes and fosters economic development in underserved communities and markets by offering affordable financing and business assistance to small businesses that have difficulty accessing conventional capital markets due to insufficient financial histories, inadequate credit scores, language and other barriers.