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Small-Biz Loan Pool To Operate in Elm City
Fleet pledges $3.7M for small urban businesses
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Business New Haven
08/04/2003
By: BNH
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FleetBoston Financial has beefed up funding for a loan pool that has provided financing to small businesses in Meriden, Hartford and New Britain — and will now operate in New Haven as well.
Fleet officials announced last month that they would provide $3.7 million in lending capacity to the fund, which is administered by a joint partnership of the Spanish-American Merchants Association (SAMA) and the Hartford Economic Development Corp. (HEDCO).
The loan pool was created in December 1999 with a $2.5 million commitment from Fleet and $1 million from state coffers. The idea was to provide financial support to small businesses in Meriden, New Britain and Hartford.
Since then the loan pool has provided 60 companies with financing to begin or expand operations. These loans have ranged from modest sums up to $150,000.
Funding for the loan pool is provided through Fleet Development Ventures (FDV), Fleet’s investment unit that invests equity capital in businesses and real estate benefiting low- and moderate-income communities and residents as well as female- and minority-owned businesses.
Explains Julio Mendoza, SAMA’s executive director: "The partnership between Fleet, HEDCO and SAMA has created a unique financing alternative for people in Connecticut’s cities. Everyone involved looks forward to continuing the work of the loan pool in Hartford, New Britain and Meriden and to the new opportunity to assist small-business owners in New Haven."
The loan pool is administered by HEDCO, which provides credit analysis, reporting and day-to-day administration. SAMA markets the program to qualified applicants and advises loan recipients.
Headquartered in Hartford with offices in New Haven and New Britain, SAMA was founded in the early 1980s as a vehicle for urban economic development. The non-profit provides technical assistance and training for small-business owners.
According to Fleet officials, loans from the pool feature competitive rates. Lending targeted toward businesses that might not qualify for traditional bank loans or other conventional financing.
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