SPECIAL PROMOTION borhood auto repair shop in Pawtuxet Village , since high school graduation in 2002 . He became a skilled auto mechanic and worked his way to up to management , continuing to service automobiles while also managing day-to-day operations . He and his wife Irene dreamed of one day buying the business and focused on saving up . When the former owner retired , Mike and Irene worked with Centreville Bank and OSBDA using the 504 program and purchased the business and real estate in early 2023 . Today Mike and Irene are proud small business owners .
“ The 504 is such a great program because it preserves liquidity ,” says Joe Bell , commercial loan officer at Centreville . “ It allows the borrower to inject a smaller amount of cash , 10-15 percent , where a normal commercial loan would require close to 25 percent . Sometimes it ’ s hard to get your hands on that much cash . So it really gives those very eager , hungry business owners who have worked hard their whole lives an opportunity .”
“ The 504 program gave my family a future ,” Giossi says . “ Without help from Joe and the Centreville Bank team , buying this business would not have been possible . Keeping this shop located in the Village is very important to us and this part of town . We have generations of customers that come through our doors , such as my youngest tech . I was working on his mom ’ s car when he was here in a stroller .”
Think of your favorite local business – the pizza shop , the jewelry maker , the brewpub – they ’ re all small businesses that could use SBA programs to thrive , such as the tattoo artist Bank Newport helped .
“ A client who was a veteran and a tattoo artist moved back to RI from Omaha and found real estate more expensive here ,” Duarte recalls . “ She had funds to buy a building but not enough from a down payment perspective . We helped her purchase a building in Middletown through the 504 program . She was able to put just 10 percent down and save her additional cash to retrofit the inside of the business to fit her needs .”
Hayward calls the 504 program the window to Wall Street for small business . “ It allows you as a small business owner to get into the secondary market with the
SUCCESS STORY
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The guarantee enables businesses who wouldn ’ t typically qualify for a traditional bank loan to get financing .
— George D . Duarte , Jr ., vp / director of business banking at BankNewport
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When Rick Miranda opened his landscape construction and design company Aquidneck Landworks in 2003 , he had two employees and a Ford F-150 . After twenty years of leasing property , he knew he needed to purchase a new space that would allow him to continue to grow his business . That ’ s when Rick met Nina Luchka , vice president , small business lending , with Centreville Bank . Nina recommended the SBA 504 loan program after Rick found a location for sale in Portsmouth , R . I .
“ The process of applying for the SBA loan was not always easy , but Nina walked me through every step of the way . We pride ourselves on our work , from
advantage of below-market interest rates and lower down payment requirements . The 504 is really taking off – so far this fiscal year we ’ ve done twenty-four loans with a value of $ 32.5 million .”
Microloans : Seed money to grow on Rhode Island ’ s culture of independence and creativity means we have many very small or one-person start-ups , designers , builders , and professional service providers such as accountants . All of them need seed money to get started , whether for rent , materials , or marketing . Hayward says the microloan can be the path to success as it was for this design business . Cedar House Design Collective in East Providence ( previously Pickle & Board ) is an interior design business owned by Erika Twohig and Julie Sanfillippo . In 2020 they turned to the SBA ’ s microloan program for $ 50,000 to help launch . In 2021 , they used a second microloan to help purchase a building for their business .
Aquidneck Landworks
Owner of Aquidneck Landworks , Rick Miranda , stands outside of his new location in Portsmouth , R . I . Since 2003 , his business has expanded to include forty-five employees and a full fleet of landscaping equipment .
design to implementation , and now we are set up to continue to grow for the next twenty years .”
Rick is a Rhode Island native and graduated from the University of Rhode Island in 1995 with a degree in landscape architecture .
SBA LOAN ADVANTAGES
✓ Guaranteed by the U . S . government
✓ Competitive interest rates
✓ Fixed rates
✓ Flexibility in repayment terms
✓ Less required collateral
✓ Ability to use funds for working capital
The Microloan details Size : Up to $ 50,000 Purpose : To help small businesses start up and expand Use : To rebuild , re-open , repair , enhance , or improve your small business , including working capital or purchasing inventory , supplies , furniture , fixtures , machinery and / or equipment . Cannot be used to pay existing debts or purchase real estate . Microloans are not provided by a bank but through SBA intermediaries , nonprofit community-based organizations experienced in lending as well as in management
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