City of East Providence offers resources for small businesses - by Roberto DaSilva

The City of East Providence is proud to provide assistance to the many small businesses that are the backbone of the local economy. The city has made the success of small businesses a priority because of the many community benefits they offer. Small businesses keep profits and investments local, provide jobs for residents and deliver social benefits to the community.

The City of East Providence offers several tools to help small businesses succeed. Administered through the city’s Economic Development Commission, the city’s Commercial Loan Program creates a mechanism for investment by offering moderate-cost loans to qualified firms to allow them to locate, expand and develop business operations in East Providence. The goal of the program is to encourage economic development by providing opportunities for job creation and retention, and investment in land, buildings and equipment to expand the local tax base. The program leverages public funds with private capital, filling the gap between needed financing and funds available through conventional lending sources. The program can finance the acquisition, construction and improvement of land or buildings, as well as the purchase of capital equipment. Loans range from $10,000 to $100,000 at a variable rate adjusted annually, with a maximum repayment term of 15 years.

The city also offers a Microloan Program, which can finance startup or operating expenses or the purchase of assets for businesses with 10 or fewer employees. Small businesses seeking loans often find it difficult to receive financing from a bank. The Commercial Microloan Program fills this gap by loaning funds to businesses that need a small loan to start or expand their operations. To be eligible, a business owner must reside in the city and meet HUD income guidelines. Microloans are available from $1,000 to $10,000 at an interest rate of the prime rate plus one point, fixed over the term of the loan, with a maximum repayment term of five years.

To encourage investment, the city also offers a Tax Stabilization Program that “eases in” the amount of additional property and tangible taxes owed for certain improvements. Commercial and industrial facilities, as well as multifamily residential developments that meet program qualifications, are eligible. The minimum threshold for participation in the program by eligible properties is $150,000 in taxable improvements, as determined by the city tax assessor. The minimum threshold for new eligible tangible business equipment is $500,000. Applicants seeking stabilization for tangible business equipment must document the creation or relocation of at least 10 full-time equivalent jobs.

For more information contact the East Providence Department of Planning and Economic Development at 401-654-4288 or planning@eastprovidenceri.gov.

Roberto DaSilva is the mayor of the city of East Providence, R.I.