July 10, 2017
WAKEFIELD, RHODE ISLAND, JULY 10, 2017: Hair on Mane, a Wakefield-based business received much needed capital to open its new business from the recently launched Small Business Capital Access Program (CAP). The loan was supplied by BDC Capital Corp, recently selected by the Rhode Island Commerce Corporation (RICC) to begin offering loans to small businesses throughout Rhode Island, and by People’s Credit Union, also of Wakefield.
According to Stephanie Keenan, owner of the 343 Main Street, Wakefield hair salon, she was in need of immediate capital to purchase the salon from a previous owner. “The support we received from the Capital Access Program and from our lender, People’s Credit Union, allowed us to take over an existing salon and make it our own. We were so hoping to remain in the Wakefield area, and BDC Capital and People’s Credit Union allowed us to do just that.”
The Capital Access Program is a loan program, initiated by Governor Raimondo, that simplifies borrowing for local, community businesses and provides access to capital where none currently exists. Funds have been committed by the State of Rhode Island to enhance collateral coverage for banks and credit unions willing to make loans up to $750,000 to Rhode Island businesses with fewer than 200 employees. Participating financial institutions negotiate the loan terms with the borrower and BDC Capital provides the collateral enhancement to the financial institution which helps mitigate their risk.
According to David Harrington of BDC Capital, the company hopes to replicate the success it has had in Massachusetts in growing small businesses even in challenging economic times. “We’ve seen first-hand the success of the Capital Access Program in other states including Massachusetts. In the 20 years that the CAP program has been lending money there, more than 5,800 businesses have received funds, helping to create or retain over 42,000 jobs, and generating payroll tax revenues for the state in excess of $100 million. Unquestionably, the program is a success by every measure, and I applaud the Governor and the General Assembly for creating an environment in which Rhode Island small businesses also will have the opportunity to not only survive, but thrive, in this challenging business climate.”
“We’re committed to improving our customer’s bottom line and our participation in state-sponsored programs such as RI CAP is one example of how we apply out of the box solutions to achieve that all important objective,” said Steven Carneiro, Business and Residential Lending Manager for People’s Credit Union.
BDC Capital provides financing and investment capital for growing companies in all six New England states. Founded in 1953, the company has invested more than $1 billion into local businesses.
Since 1922, People’s Credit Union has been a community-oriented institution. It subscribes to the philosophy of “people helping people” by supporting many local charitable agencies and organizations, and its employees volunteer thousands of hours per year to help enhance the communities it serves. People’s Credit Union has six convenient branch locations throughout the state of Rhode Island to help better serve its members.