Going the distance in the North Country

Four years ago on her 72nd birthday, Linda Kane realized a dream when she became the owner and operator of a bed and breakfast in the White Mountains, thanks to some help from the Small Business Administration.

Through the SBA’s 504 Loan Program, which provides “long-term, fixed-rate financing for major fixed assets that promote business growth and job creation,” Kane, now 76, was able to augment a conventional business loan to acquire The Jefferson Inn for $269,000.

Opened in 1896, The Jefferson Inn is located on U.S. Route 2 in Jefferson, on the western edge of what was once the Waumbek Resort.

After a 30-year career in banking — and, before then, a decade running a breakfast and lunch restaurant — Kane knew she enjoyed working with the public and wanted to have a B&B somewhere in New England.

After researching the listings, Kane, who remembered that her aunt once owned a cabin on Route 115, focused on Jefferson and soon located what she thought would be her first B&B. Unfortunately, that business, in her bank’s opinion, was significantly overpriced, and her financing fell through.

On that same day, however, The Jefferson Inn went on the market, and Kane worked on securing it.

Securing a loan

On Sept. 7, Kane, who is a native of Wakefield, Mass., made her northernmost trek in New Hampshire when she came to Colebrook for the SBA’s “Start-up and Grow Funding” event. Co-hosted by the North Country Chamber of Commerce in its offices on Main Street, the event was geared to small businesses and entrepreneurs.

Participants included Service Federal Credit Union, Bangor Savings Bank, Union Bank, Woodsville Guaranty, Coos Economic Development Center, Goldman Sachs, North Country Council, State of New Hampshire/International Trade Office, NH Small Business Development Center, SCORE NH, and the Center for Women & Enterprise.

Kane, who had worked with SCORE in Revere, Mass., before becoming an innkeeper, developed a business plan and cash-flow analysis for a B&B and attended the SBA event in the hopes of acquiring funds.

After a 30-year career in banking, Linda Kane became the owner and operator of The Jefferson Inn in the White Mountains. (Photo by John Koziol)

“I need a roof, I need windows, and I need the inn to be painted,” she said. Kane estimated that a loan of $100,000 “should take care of most of it.”

Ethan Swain, the vice president of the Granite State Development Corporation, which administered Kane’s 504 SBA loan, said a 504 loan can cover up to 40% of eligible expenses, including the purchase of owner-occupied real estate and land and of fixed assets, such as heavy equipment, that has a life expectancy greater than 10 years.

The 504 loans can also be used to pay for renovations and new construction, he said, adding that they’re attractive to commercial lenders because, in effect, they serve as a backup to the lender’s loans.

Swain added that recipients of 504 loans like these types of loans because the rate is fixed for 25 years and, additionally, that the SBA is willing to take a risk on projects “that it would otherwise be difficult to finance” through conventional lending instruments.

Beginning a long journey

Among the other familiar faces Kane ran into in Colebrook was that of Tracy Gillick, the outreach specialist with Goldman Sachs 10,000 Small Businesses, which helps “small businesses grow and create jobs by providing them with greater access to education, capital and business support services.”

Working with Babson College, which develops the curriculum, Goldman Sachs 10,000 Small Businesses offers scholarships for a “mini-MBA” program at Manchester Community College.

Graduates — including Kane’s daughter, Andi Gendron, who is the manager at The Jefferson Inn — are taught how to grow their businesses, explained Gillick, who is from Chester, and in doing so “they have a greater impact in their communities.”

While Gillick had a three-hour ride to Colebrook for the SBA event, Richard and Denice Silva came all the way from North Scituate, Rhode Island.

After visiting the Pittsburg area for 30 years, the couple bought a former cottage colony and a trailer park on Back Lake with the idea of rehabilitating them.

Tracy Gillick, seated, the outreach specialist with Goldman Sachs 10,000 Small Businesses, speaks with Linda Kane. (Photo by John Koziol)

“We came here (to the SBA event) because we didn’t even know where to start,” Denice said.

“We’re not worried about the (interest rates) at the moment,” said Richard, adding that he and his wife were in the “infancy stage” of planning and just wanted to get a better understanding of the challenges, but also the opportunities, that they might have.

Based on what they learned at the event, the 10-hour, round-trip drive from the Ocean State was “well worth” the time, he said.

Rachael Roderick, the deputy district director for the SBA’s New Hampshire District Office, said her agency was pleased with the event in Colebrook.

“Participants were able to connect with the lenders to discuss capital needs and also meet with the resources that can help pull together financial proposals and offer other technical assistance free of charge,” Roderick said.

“SBA NH will continue to work with these partners to further our reach into Coos County’s small business community with targeted educational programs, exporting assistance as well as funding options to help small businesses start and grow in the North Country,” she said.