EDIC gets fed funds; For micro-loans to credit starved small businesses

LYNN – Some credit-strapped small businesses in Lynn may soon have a new financial resource: micro-loans from the Lynn Economic Development and Industrial Corp. (EDIC).The U.S. Small Business Administration (SBA) has notified city officials of its continued investment in the local economy through an additional $750,000 loan to the EDIC, specifically for use as micro-loans. The SBA previously awarded Lynn $250,000 for micro-loan funding.”This is the biggest loan the EDIC has ever received from the SBA. Especially in these economic circumstances, these funds are critical,” said EDIC Executive Director James Cowdell.He noted that six businesses have received a total of $175,000 in micro-loans from the first pool of money received in early summer.”We have received many individual loan applications from businesses that have been unable to be approved for loans through traditional-lending practices. This will enable us to help meet that demand,” Cowdell said.Under the micro-loan program, the local EDIC makes loans to small businesses in amounts ranging from $5,000 to $35,000. The micro-loans can be used for working capital, as well as for the acquisition of materials, supplies, furniture, fixtures and equipment.The six loan recipients are the Kevmoe Imaging wedding photography business; October Hand-made Bikes on Western Avenue; the Hibernian Building Corp. at the Hibernian Hall on Federal Street, Jazzy Sportswear custom clothing and imprinted products on Munroe Street; Calnan Construction on Reservoir Road; Green Passage ground transportation shuttle service; and Lynn Sports, a startup Web site company focused on Lynn high schools.”We’re very appreciative of the support from the SBA,” said Mayor Judith Flanagan Kennedy. “The success of small businesses is directly tied to the overall health of the economy. This loan will allow us to make a significant impact for many small businesses in the city.”Cowdell said small businesses in Massachusetts are the No. 1 private sector job creators.Robert Nelson, regional SBA director, said helping a new business get off to the right start and assisting business owners as they grow successful enterprises is the ultimate goal of the micro-loan program.”We’re pleased to be able to partner with an excellent organization like EDIC to meet the need for small loans and training in the city of Lynn,” Nelson said.