The South Eastern Economic Development (SEED) Corp. has secured $1 million from the U.S. Small Business Administration (SBA) for micro loans up to $35,000 for small businesses in Massachusetts and Rhode Island.

Micro loans are available for existing and start-up small businesses including home based businesses, the organization said.

Loan funds can be used for working capital, inventory, machinery and equipment, furniture and fixtures, leasehold improvements and refinancing business credit card debt with high interest rates. The term on the loans is up to six years, and the current rate is fixed at 6.5 percent.  

According to Maria Gooch-Smith, SEED’s executive director, small business owners need to have at least a 600 credit score and be able to explain delinquencies. She added that SEED will be reviewing the small business owner’s entire household income to see if there is enough income to repay the loan.

SEED has administered an SBA Micro Loan Program in Massachusetts for the past 10 years and has made 300 micro loans totaling $6.6 million, assisting in the creation of 865 new jobs, the company said.