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Co-Lending / Single Event Financing |
In addition to direct lending, Seedco Financial is an important and much-needed resource for the banking community. We work with local banks and other lenders to provide gap financing in financing structures where a bank is unwilling to advance a borrower 100% of requested funds.
Typical projects include real estate developments in low-income communities, often with involvement of community-based organizations. Seedco Financial provides low-cost mezzanine-like financing in these deals and has actively participated in the SBA 504 Loan Program to provide portions of the 10% required equity. Some recent examples:
- Carriage Academy: In 2007, Seedco Financial provided a $75,000, five-year, term loan to Carriage Academy for leasehold improvements, working capital, and equipment. Carriage Academy is a small daycare for children and has been in operation in Fairfield, AL, since 1999.
- JT Bell Home Improvement: In 2007, Seedco Financial advanced $75,000 to JT Bell Home Improvement Company, LLC for expanded inventory. JT Bell is a small independent home improvement store, which has been operating in Alabama's Black Belt since 1983. The loan was a part of larger financing provided by the South Central Alabama Development Commission.
- Westside Funeral Home: In 2006 and 2007, Seedco Financial provided a total of $175,000 in financing to Westside Funeral Home for furniture, fixtures, and equipment as part of an SBA 504 Loan for the renovation of the expansion branch of the Funeral Home in Fairfield, AL. The bank partner in this deal was Central State Bank and the SBA 504 Loan Guarantee was provided via the Florida Business Development Corporation.
