To increase access to capital for existing small businesses in Rhode Island, the Small Business Loan Fund Corporation (SBLFC) Board of Directors has approved lowering the standard interest rate on their loans to an average of 5.75 percent from the previous average rate of 7.5 percent.
"It is critical that we do everything possible to encourage small business owners to grow their companies in Rhode Island, and we want to do everything we can to help them succeed," Governor Lincoln D. Chafee said. "Lowering the SBLFC interest rate is one of the many ways in which Rhode Island is building a more competitive business climate where companies, large and small, can thrive."
"I am appreciative of the work done by the SBLFC Board to lower the interest rate on small business loans," said William Parsons, Rhode Island Economic Development Corporation Managing Director, Business Services and Community Development. "The new SBLFC standard interest rate will lower the borrowing costs for small businesses and help them meet their growth needs."
The new rate is based on the current Prime Rate of 3.25 percent plus 2.5 percent. The interest rate will be fixed for borrowers at the time of the loan's closing.
Businesses seeking more information can contact Sean Esten Director of Financial Services at RIEDC, at 401.278.9100 ext. 133.
About Small Business Loan Fund For smaller businesses looking for a direct, fully-secured loan, the Small Business Loan Fund provides $50,000 up to $250,000 in financing. The program funds average 25 percent of the total project cost and can be used for acquisition and improvements of land, buildings and equipment, new construction, and working capital. Interest rates are fixed. The repayment terms are flexible, with working capital financing up to five years and fixed assets up to 10-year terms.