SMALL BUSINESS BANKING IN RHODE ISLAND
SPECIAL PROMOTION
so they could offer dry-dock services that were unavailable locally . The lift now gives Goodison ’ s shipyard the tallest and widest lift capacity in the Northeast . They have even hauled the SSV Oliver Hazard Perry , Rhode Island ’ s own tall ship , for U . S . Coast Guard inspection .
The 504 details Size : Up to $ 5.5 million in long-term , fixed rate financing Purpose : To finance major fixed assets that promote business growth and job creation Use : Building / purchasing buildings or land , purchasing long-term machinery and equipment , and upgrading or improving existing facilities . They cannot be used for working capital , consolidating / refinancing debt , or investing in rental real estate .
With the 504 program , banks work in partnership with Certified Development Companies , which are the SBA ’ s community-based partners who promote economic development . There are four serving the RI District : Ocean State Business Development Authority , Bay
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Colony Development Corp ., CDC New England , and South Eastern Economic Development .
The amount of money loaned is allocated among stakeholders on a 50-40-10 formula : 50 percent from the SBA-approved bank , 40 percent from the CDC organization on behalf of the SBA , and 10 percent in cash or cash equivalent from the business owner .
The CDCs and the banks refer deals back and forth — a borrower can either go to the CDC and they will help find a lender , or the bank can proactively reach out to the CDC on behalf of a client . That ’ s what Centreville Bank did late last year to help Mike Giossi achieve his lifelong dream of business ownership .
Giossi had been working at Pawtuxet Auto Service , a multi-generational neigh-
SBA 504 Lender of the Year
*
$ 10 Million in 2022
Small businesses trust our experience , expertise and commitment to their success . Our 100 % local decision-making is built on our understanding of the communities we serve , and of each business ’ s role within it .
Contact our commercial team and see how everything we offer can work in your business ’ s favor .
centrevillebank . com / commercial
* Based on number of loans in SBA ’ s Fiscal Year 2022
EQUAL HOUSING LENDER | NMLS # 402947 | MEMBER FDIC
98 RHODE ISLAND MONTHLY l APRIL JUNE 2023