Two Worcester businesses this month received federal small business loans in order to invest in real estate, according to announcements from the Worcester Business Development Corp. and U.S. Congressman Jim McGovern (D-MA).
Shrewsbury Street restaurant Flying Rhino Cafe & Watering Hole and law firm Skylark Law & Mediation both received 504 program loans from the U.S. Small Business Administration through the WBDC and two local banks.
Flying Rhino owners Paul and Melina Barber are using their loan of $343,954 to buy the restaurant’s building at 278 Shrewsbury St., while Skylark owner Justin Kelsey will use his loan of $181,500 to expand with more space to lease to other small businesses.
The SBA’s 504 loan program was created to incentivize small companies to invest in real estate, machinery or equipment. It does this by giving businesses a 20 or 10-year fixed interest rate, with a 10 percent equity infusion by the borrower.
