When Small Business Administration district director Robert H. Nelson visited the city Tuesday, he delivered more than just the best wishes of the federal government.
Nelson presented a check for $200,000 to Mayor Thomas M. McGee and Economic Development and Industrial Corporation executive director James M. Cowdell, the funding to be used for EDIC/Lynn’s micro loan program.
“We appreciate the confidence the SBA continues to show in Lynn by supporting this critical loan program,” McGee said. “The success of small businesses is in direct correlation to the overall health of the economy. This funding will allow us to make a significant impact for many small businesses in the city.”
“The micro loan program is an invaluable resource for businesses looking to establish themselves or take their business to a new level,” Cowdell said. “The ongoing investment in Lynn by the SBA allows us to provide important financial support.”
Under the microloan program, EDIC/Lynn makes loans to small businesses in amounts up to $50,000. Microloans can be used for working capital, inventory and supplies, furniture, machinery and equipment.
EDIC/Lynn has awarded more than $125,000 in microloans over the last 18 months. Recipients include: Arts After Hours, Busy Bee Nursery School, Christopher’s Café, Globo Services, Los Chamos restaurant, Luna Sweets bakery and Prism Products.
As an example of how the funding can be utilized, Busy Bee renovated classrooms and made other improvements, allowing the school to increase enrollment. Christopher’s was able to buy kitchen equipment, a heating and air conditioning system, a fire-suppression system, and make other capital improvements.
“These loans can often make the difference for a small business trying to take the necessary steps to survive in a competitive environment,” Cowdell said. “We are grateful that the SBA gives us the resources to continue to invest in businesses that want to make an investment in our city.”
According to the SBA, small businesses are Massachusetts’ No. 1 private-sector job creators. 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 SBA’s microloan program. One essential element of a successful small business is a business plan. EDIC/Lynn can help entrepreneurs create a business plan and provide other assistance, in addition to the micro loan program.