Rejuvenations Salon & Day SpaPlymouth, MA

Eastham, MAAttleboro, MA The Attwater Newport, RI

Eaton ChiropracticTaunton, MA

Walnut Grove School HouseFairhaven, MA

Warwick, RI

Bourne, MA

Magical Years Early LearningHalifax, MA

SOUTH EASTERN ECONOMIC DEVELOPMENT CORPORATION

80 DEAN STREET, TAUNTON, MA 02780 (508) 822-1020 www.seedcorp.com

Route 44 Hyundai, Raynham, MAScituate Boat WorksScituate, MA

William F. Borhek Insurance AgencyHalifax, MA

Fall River, MA

Plymouth GIPlymouth, MA

Brockton, MA Distron Corp.North Attleborough, MA

30 Years of Service to Small Businesses

Nantucket, MA

Dockside Inn, Oak Bluffs, MA

Away CaféWeymouth, MA

Yoga AntaraProvidence, RI

ANNUAL REPORT 2012

FERDINAND KELLEYChairman of the Board

Report to the Corporation

ABOUT THE COVER: The Annual Report Cover depicts some of the small businesses financed by SEED this past year. Weapologize for not being able to include everyone. SEED Corporation, 80 Dean Street, Taunton, MA 02780 • (508) 822-1020.

1

Melinda AilesStephen AlmeidaAnn M. AugerKerrie BabinJoseph T. Baptista, Jr.Tim BaurleyWilliam G. BerardiPaula BotelhoChad BrubakerRita BurkeRussell BurkeRoger A. CabralLawrence CameronMichael CarrieroWayne CarvalhoTerrance A. CharestMichael ChatwinJohn F. ClarkRobert F. CollinsDaniel ConradGeorge Couto

Manuel DaRosaPeter Dello RussoLinda DeMarcoRaymond A. DionneJohn DuclosWilliam R. Eccles, Jr.Nancy EyreRichard FarmerBruce E. FernandesRoss J. ForbesPaul A. GalopCynthia GilchrestJeanne GirardJune GoguenJohn Paul GomesMelodie HansonDean HarrisonWarren R. HartwellNorman A. Hayes, IIICarol S. HegartyHal Horvat

Robert Howard, Jr.Steven J. IngallsLisa KaminskiMike KehoeValerie LacasseRichard L. LaFranceJack LankStuart A. LawrenceMatthew R. LedinWilliam LewisGary LibmanManuel Louis LopezBill LyndonDonna McKennaCarol MeasorAnthony MedeirosJoan M. MedeirosPaul S. MedeirosSally O. MedeirosBecky MelloJennifer Menard

Willitts MendoncaDan MorrisonMatthew A. MorrisseyBetty-Ann Mullins Roy NascimentoKevin A. NeryJonathan C. NeunerCaroline NoratoSeamus M. O’ConnellGregory F. O’DonnellStephen C. PeckKevin PellandRobert PellegriniLouis J. PetrovicNiko Phillips-DiazJeffrey P. PineaultRichard V. PoyantJanice E. RobbinsDouglas RodriguesHarold Rose, Jr.Peter E. Selley

Richard ShaferGlenn ShermanLarry SilviaStephen C. SmithEdward F. SousaAndrew K. SpringerLinda SternfeltNancy StokesLeonard SullivanCarol SullivanCarl W. TaberManuel J. TavaresLouis T. TeixeiraPamela TosiDebra TowerLorraine A. TraversLuke P. TravisPhil C. VecchioJohn Whalen, Jr.Marilyn WhalleyG. Greg White

Plymouth & Norfolk Counties

David AugustinhoElizabeth BalaschakElizabeth BridgewaterSteven J. CronenSean DalyCharles DeSimoneBradford Egan

Paul T. GarganigoMichael GiancolaShari L. HayesRobert A. LadiciccoBob JacksonDebi JamesLiz Kane

Timothy LoweJames McEvoyElizabeth McNicholsThomas MolloyDan MorrisonTom O’RourkeMarie Oliva

Michael PetruzzoRobert E. ReisnerChristopher E. RichardsEdward A. RubelWilliam L. SkinnerPeter Q. SmithStephen J. Spitz

Ron StandishRobert A. TalermanMichael TulmanVeronica TorresPaul J. WattsAndrew P. Young

Barnstable, Dukes and Nantucket Counties

10

MEMBERS 2011-2012

Bruce AndersonPaul AnghinettiLauren BakkenWilliam M. BarnesJohn J. BiggioJohn ButlerFrank CamachoPaul T. CareyDaniel CaseyPasquale CiaramellaTimothy CoeChristopher CooneyJohn S. DavisonStephen G. De Castro

Stephen DiPreteJulia DixonStephen J. DonahueCharles DwyerLinda FountainPatrick J. GaughanJoseph GesualdoGregory GlennonValerie GlynnRichard GoneauCarolyn GreenMaureen GregoryDavid HamburgerDenis J. Hanks

James HanlonJohn T. HayesJim HorriganBruce G. HughesTom IrvingDonald G. Isles Roberta JacksonWayne A. JanelleMark KearinsFerdinand T. KelleyThomas G. KinchlaJulie A. LanePaul MarascoMayla Martin

Jeni Lynn MatherMaryEllen MaynesCheryl McCormickJack B. Meehl, Jr.John MoranMichael J. MoranGerard NadeauCharles NadlerMatthew J. NutterThomas O’RourkeRichard L. PetersonLawrence J. PitmanMave ResnickJoan Richards

Frank RocheMeagan RundellMichael D. SavageFrank SebastianStephen SooyBrian J. TaylorEllen ThomasDaniel K. TroutJames TynanNathan TynanMary VigeantMary WaldronFriend S. Weiler

Bristol County

Denise BargeBob BillingtonRichard BowieAnthony CapuanoStacey CarterJohn Cronin

Andriana DawsonCarmen Diaz-JusinoAna C. DyerMichael A. Ferrara, Jr.Timothy FloodBritta Gobitas

Gary J. HeidelDoug JoblingTom KellyJoe KriesbergRichard LabrecqueHelenmary Lauth

Roy LauthSandra McNamara LenLen MorrisseyTyler OtfinoskiBharat PatelChristopher Rhodes

Bonnie SiroisRobert A. SkurkaArthur SpeaksHeather StormeWilliam Welsh, Jr.Nelson White

Rhode Island & Massachusetts/Other

With the region’s economy finally improving,SEED increased its lending to small businessesby 20 percent in Fiscal Year 2012. Under allits programs, SEED made 134 loans totaling$40 million. These loans leveraged $73million in bank loans and private funds,and assisted in the creation of 692 newjobs.

This past year, working with the region’sfinancial institutions, SEED approved 46 loansunder the SBA 504 Program, and closed onanother 45, for a total of 91 loans representing$38 million. So far, SEED has made 622 SBA504 loans totaling $218 million and creating5,170 jobs.

SEED’s Revolving Loan Fund (RLF)provides loans up to $200,000 whichrepresent a portion of the total financingneeded. These loans assist small businesseswith working capital and fixed asset projects,and are subordinate to the participatingfinancial institution. So far, SEED has made396 RLF loans totaling $15 million, andcreating 2,383 new jobs.

SBA 504 loans, which finance primarily thepurchase and improvement of business realestate in participation with the region’s banks,provided small businesses with the lowestfixed rates in years, on average 4.3 percentfixed for 20 years. The lower down payment,frequently only 10 percent instead of theconventional 20 to 25 percent, enabled smallbusinesses to conserve working capital.

In August, SEED received a $1 million grantaward from the Community DevelopmentFinancial Institution (CDFI) Fund under the

U.S. Department of the Treasury. The grantincreased SEED’s loan capital base to $6million, and has enabled SEED to continuemeeting the demand for gap loans up to$200,000. SEED also borrowed additionalfunds from SBA to continue making microloans up to $50,000.

As the region’s local development companyfor the last 30 years, SEED has made 1,784loans totaling $300 million, leveraging $608million in private funds, and creating11,268 jobs. SEED’s total current loanportfolio balance is $105 million.

As the regional SBA Intermediary for theMicro Loan Program, SEED continued tomake micro loans and conduct its BusinessAssistance Program, which includes smallbusiness workshops, individual businessassistance, and a small business library. So far,SEED has made 387 micro loans totaling$9 million and creating 1,133 new jobs.

This past year, SEED held 27 workshopsattended by 486 prospective and existingentrepreneurs, and provided 877 businessassistance sessions for a total of 1,363individuals. The workshops taught the basicson starting and operating a small business,and understanding financial statements andcash flow.

SEED Ventures LP, a $20 million mezzanineand quasi equity fund designed to assist theregion’s growing businesses, was sponsoredby SEED and licensed by SBA in 2005 as aSmall Business Investment Company (SBIC).The Fund has made 30 investmentstotaling $14.4 million. Investments range

from $250,000 to $1.25 million in companieswith potential for growth and job creation.

For their continued support, we would like tothank the following: the SoutheasternRegional Planning and EconomicDevelopment District (SRPEDD); the U.S.Small Business Administration (SBA); the U.S.Economic Development Administration (EDA);MassDevelopment: the MA Executive Office ofHousing and Economic Development; theU.S. Department of Agriculture (USDA); theTown of Wareham; the banking community;the region’s legislators; our economicdevelopment partners; and our smallbusinesses.

We are honored to serve our region and itssmall businesses as SEED Chair andExecutive Director, and as members of avery effective team: a highly professionalBoard of Directors; dedicated and competentmembers of the Loan Review Committee,Micro Loan Committee, and NominatingCommittee; and a very capable and loyal staff.

Thank you all for your trust and support.

Respectfully submitted,

Ferdinand KelleyChairman of the Board

Maria Gooch-SmithExecutive Director

MARIA GOOCH-SMITHExecutive Director

9 2

BACKGROUND

SBA 504

TERM AND RATE

ELIGIBLE BUSINESSES

ELIGIBLE PROJECT

MINIMUM AND MAXIMUM

JOB REQUIREMENT

ABOUT SEED CORPORATION

The South Eastern Economic Development (SEED) Corporation was established in1982 as a Chapter 180 non-profit corporation under the Massachusetts General Laws.Late that year, SEED was certified by the U.S. Small Business Administration (SBA) topackage loans under the 504 Program. SEED’s mandate is to assist small businessesto start up, expand and create new jobs.

In the fulfillment of its mission, SEED has also become: a Community DevelopmentFinancial Institution (CDFI) under the U.S. Department of the Treasury; a CommunityAdvantage Lender under SBA’s 7A Guaranty Program; and an Intermediary Lenderunder the SBA Micro Loan Program.

SEED’s geographic coverage presently includes Massachusetts and Rhode Island.SEED has 200 members and 40 directors. The membership represents: communitybusiness organizations; local economic development officials; financial institutions; andsmall businesses. SEED has a staff of fourteen. Administrative costs are coveredthrough fees, interest on loans, and grant funds for small business technical assistance.

SEED’s financing programs are designed to work in conjunction with the banks in theregion. In some cases, SEED’s role is to assist and support small businesses in theirstart up phase until they are ready for bank financing.

SEED runs three programs which provide loans ranging from $1,000 to $5.5 million.They are: the SBA 504 Program; the Revolving Loan Fund; and the Micro Loan Program.

SEED’S LOAN PROGRAMS

Through the SBA 504 Program, a small business can obtain up to 90 percent financingfor a fixed asset project. A bank selected by the applicant finances 50 percent of theproject and takes first position on the project collateral. An SBA 504 debenture providesup to 40 percent in second position, and the applicant provides the remaining 10 percent.The bank portion is financed at conventional rates and terms. SEED staff is responsiblefor all the “504” paperwork.

Ten years for machinery and equipment and 20 years for real estate projects. Interestrate is fixed and close to the prime rate. Last year’s rate averaged 4.3% fixed.

For-profit corporation, partnership or proprietorship; industrial or commercial enterprise;net worth not in excess of $15 million; less than $5 million average net profit after taxesduring previous two years.

Acquisition of land and buildings; construction and/or renovation; leaseholdimprovements; machinery and equipment; furniture and fixtures; interim interest; andprofessional fees.

A minimum of $50,000 (a total project of $125,000), and maximum of $5.5 million on aproject of $13.75 million or more. On projects smaller than $300,000, SEED evaluatesthe benefits to the client, and may use its Revolving Loan Fund.

One job for each $65,000 of SBA investment over a period of two years. The jobrequirement may be waived by meeting public policy goals.

OFFICERS AND DIRECTORS2011 - 2012

Chair - Ferdinand T. Kelley Vice Chair - Richard L. Shafer, Econ. Dev. Dir., Taunton Office of Economic & Community Dev.

Vice Chair - Gerard Nadeau, EVP/Senior Lender, Rockland Trust CompanyTreasurer - William M. Barnes, SVP, Citizens Bank

Assistant Treasurer - Lorraine A. Travers, C.P.A., C.F.P.Clerk - William D. Lewis, VP, Bristol County Savings Bank

Assistant Clerk - Roy Nascimento, President & CEO, New Bedford Area Chamber of CommercePast Chair - James McEvoy, Regional Vice President, TD Bank

* * *

Paul W. Anghinetti, SVP Business Banking Market Executive, Bank of AmericaDavid Augustinho, Ex. Dir., Cape & Islands Workforce Investment Board

Kerrie Babin, President, Taunton Area Chamber of CommerceElizabeth K. Balaschak, Esq., Attorney at Law

John J. Biggio, VP & Senior Loan Officer, Mayflower BankElizabeth Bridgewater, Ex. Dir., Community Development PartnershipPaul T. Carey, Sr. Commercial Lender, Digital Federal Credit Union

Wayne Carvalho, VP & Senior Commercial Lender, First Citizens Federal Credit UnionPasquale Ciaramella, Executive Director, Old Colony Planning Council

Daniel Conrad, First SVP, Mansfield BankChristopher Cooney, President & CEO, Metro South Chamber of Commerce

Adriana Dawson, State Director, RI Small Business Development CenterCarmen Diaz-Jusino, Program Director, Center for Women & Enterprise, RI

Stephen DiPrete, SVP, Eastern BankStephen J. Donahue, VP Commercial Sales, Donahue Associates Realtors

Charles Dwyer, VP, Middlesex Savings BankAna C. Dyer, SVP, Webster Bank

Bradford P. Egan, EVP, Martha’s Vineyard Savings BankDenis J. Hanks, Ex. Dir., Plymouth Area Chamber of Commerce

Donald G. Isles, VP, Dedham Institution for SavingsPaul S. Medeiros, SVP & Senior Lender, BankFive

Jack B. Meehl, Jr., Principal, Ashberry Street AdvisorsJennifer Menard, Ex. Dir., SouthCoast Development Partnership

Jeffrey P. Pineault, CFO Lafrance Hospitality CompanyRobert Reisner, VP/Commercial Lending, Cape Cod Five

Douglas Rodrigues, CPA, D.E. Rodrigues & Company, Inc.Edward F. Sousa, SVP/Senior Commercial Lender, Bridgewater Savings Bank

Nancy E. Stokes, SVP, Mechanics Cooperative BankCarl W. Taber, EVP & Chief Lending Officer, BayCoast BankMary Waldron, Ex. Dir., Brockton 21st Century Corporation

Friend S. Weiler, SVP/Commercial Lending, HarborOne Credit UnionWilliam Welsh, Jr., Chair, RI Chapter of SCORE

STAFFMaria Gooch-Smith, Executive Director

Tamarah Bacon, Business Development & Assistance ManagerFrank Celino, VP/Business Development Officer

Ling Ling Chang, Business Manager / CPAJason Croghan, Adm. Assistant

Ann Desrosiers, VP/Operations & Portfolio ManagementWilliam Diskin, Business Assistance Officer

Laurie Driscoll, AVP/Commercial Loan OfficerLisa Holmes, SVP/Lending Team Leader

Angela Knight, Marketing & Business Assistance OfficerSusann Patterson, First VP/Cape Cod Bus. Development Officer

Anne Rounds, AVP/Closing ManagerSidonia Silva-Reyes, Commercial Lending & Servicing Officer

Katherine Torres, Administrative OfficerAnne Trevisani, AVP/Commercial Loan Officer

Lindsey Williams, AVP/Commercial Credit AnalystThomas Wooters, VP/Manager, SEED Ventures LP

BALANCE SHEETASSETS 9/30/12* 9/30/11Cash-Unrestricted ................................................$ 537,092 ............................$ 712,264Cash-Loan Funds (Restricted) ................................1,626,399 ..............................1,784,555Interest Receivable........................................................26,064 ......................................6,291Notes Receivable - Loan Funds ..............................4,760,609 ..............................4,204,466Grant Receivable ..........................................................64,085 ..................................122,536Prepaid Expenses ..........................................................5,596 ....................................14,021Accounts Receivable ..................................................115,006 ....................................90,442Fixed Assets (Net) ......................................................718,400 ..................................740,511__________ __________

TOTAL ASSETS....................................................$ 7,853,251 ............................$ 7,675,086

LIABILITIES & FUND BALANCEAccounts Payable ................................................$ 20,078 ............................$ 35,118Accrued Expenses ......................................................111,622 ..................................106,978Client Deposits ..............................................................11,250 ....................................16,950Deferred Revenue ..............................................................214 ........................................318Notes payable — SBA ............................................1,402,250 .............................. 1,388,476Mortgage Payable ......................................................488,864 ..................................520,348__________ __________

TOTAL LIABILITIES ............................................$ 2,034,278 ............................$ 2,068,188

Fund Balance ........................................................$ 5,818,973 ............................$ 5,606,898__________ __________

TOTAL LIABILITIES & FUND BALANCE..............$ 7,853,251 ............................$ 7,675,086

INCOME STATEMENTINCOME 9/30/12* 9/30/11Federal Revenue ................................................$ 384,252 ............................$ 530,804State Revenue ............................................................125,000 ............................................0Other Revenue ............................................................349,843 ..................................330,668Interest ........................................................................284,761 ..................................260,846Fees..........................................................................1,043,605 ..............................1,037,399__________ __________

TOTAL INCOME ..................................................$ 2,187,461 ............................$ 2,159,717

EXPENSESSalaries & Wages..................................................$ 1,307,847 ............................$ 1,209,365Consultants....................................................................93,370 ..................................125,438Fringe Benefits ............................................................136,572 ..................................142,309Payroll Taxes ................................................................95,500 ....................................88,156Interest ..........................................................................30,470 ....................................30,701Depreciation ..................................................................26,802 ....................................26,034Office & Other..............................................................236,487 ..................................246,596__________ __________

TOTAL EXPENSES ..............................................$ 1,927,048 ............................$ 1,868,599

EXCESS INCOME OVER EXPENSES ................$ 260,413 ............................$ 291,118

LOANS WRITTEN OFF ..............................................(48,338) ..................................(33,467)__________ __________

EXCESS INCOME OVER EXPENSES .............. $ 212,075 ............................$ 257,651* Preliminary

3

RLF PROGRAM

HOW IT WORKS

ELIGIBLE BUSINESSES

ELIGIBLE PROJECT

TERM AND RATE

MICRO LOANPROGRAM

HOW IT WORKS

ELIGIBLE BUSINESSES

TERM AND RATE

SEED VENTURES LP

HOW IT WORKS

ELIGIBLE BUSINESSES

INVESTMENTS &USE OF FUNDS

TERM AND RATE

PARTICIPATINGINVESTORS

SEED established the Revolving Loan Fund (RLF) Program with grants from the U.S.

Economic Development Administration and the State of Massachusetts. Since 1984 SEED

has received a total of $3.2 million in grants to provide gap financing for small businesses.

Under the RLF Program, SEED provides loans up to $200,000 which can be used as the

down payment on a larger project. The SEED portion of the project is usually 30 percent but

can be larger if there is a demonstrated gap.

Manufacturing, agriculture and fishing, retail, wholesale and service businesses; net worth not

in excess of $2 million; less than $750,000 average net profit after taxes during previous two

years.

Acquisition of land and buildings; construction and/or renovation; equipment and furnishings;

and working capital. Job creation or retention is required.

Up to 10 years with amortization schedules up to 20 years and an interest rate below market

and fixed, currently 5%.

SEED administers this program with $1.2 million in grants from Massachusetts, and loans

from SBA. Under SBA’s Micro Loan Program, SEED has access to $5 million in loan funds to

assist small businesses in Massachusetts and Rhode Island.The following banks have

contributed to the reserve fund required for this program: Bank of America; Bristol County

Savings Bank; Citizens Bank; Eastern Bank; Rockland Trust Company; Sovereign Bank; and

Webster Bank.

Under the Micro Loan Program, SEED provides loans up to $50,000 which can be used for

working capital, machinery and equipment, and furniture and fixtures.

Manufacturing, retail, wholesale and service businesses.

The term is up to six years. The interest rate is close to market and fixed, currently 6%.

This $20 million fund, sponsored by SEED and licensed by SBA as a Small Business

Investment Company (SBIC) in 2005, specializes in subordinated debt, senior debt and equity

investments in small and medium size businesses. The fund focuses on Massachusetts and

Rhode Island, but can make investments in New England.

The investment process formally begins with the submission of a Business Plan which

includes: a brief overview of the company; experience and background of key management;

description of the company’s products and/or services; analysis of the service market;

discussion of the company’s strategic plan; financial history and projections; amount of

financing required and use of funds; and personal financial statement for the principals.

Investment opportunities are presented to the Investment Committee for review and final

approval.

Companies with a net worth of $18 million or less, and an average net income in the last two

years of $6 million or less; annual sales of $1.5 million or more; positive cash flow; and

significant growth potential.

Investments range from $250,000 to $1.25 million, although larger transactions can be made.

The use of funds includes: strategic acquisitions; buyouts; recapitalizations; capital to support

growth; and equipment and real estate purchases.

Up to 7 years maturity; up to two years interest only period; interest of 12% to 14%; and

warrants or a similar equity related security.

BankFive; Bank of America CDC; Bridgewater Savings Bank; Bristol County Savings Bank;

Eastern Bank; Citizens Bank; BayCoast Bank; Greater Fall River Development Corporation;

The Life Insurance Community Investment Initiative, LLC; Middlesex Savings Bank; The

Property and Casualty Initiative, LLC; Rockland Trust Company; Sovereign Bank, FSB; TD

Bank, NA; and Webster Financial Corporation.

8

SEED’S FINANCIAL STATEMENT

4

1. Loans approved in Fiscal Year 2012, but not yet closed. 2. Loans approved and closed in FY 2012.

FY ’12* 1983 - 2012**

$ NUMBER OF LOAN PRIVATE NEW JOBSPROGRAM JOBS LOANS AMOUNTS LEVERAGE CREATED

91*SBA 504 $38.2 MM 622 $218.1 MM $451.4 MM 5,170STARTED IN 1983 495 JOBS

1SBA GUARANTY (7A) $.14 MM 135 $41.5 MM $16.4 MM 1,438STARTED IN 1990 6 JOBS

16REVOLVING LOAN FUNDS $1 MM 396 $15.3 MM $126.9 MM 2,383STARTED IN 1984 97 JOBS

ENTERPRISE FUND - 244 $15.7 MM – 1,1441994 to 2005 -

26MICRO LOAN $.86 MM 387 $9.2 MM $12.9 MM 1,133STARTED IN 1994 94 JOBS

134TOTALS $40.2 MM 1,784 $299.8 MM $607.6 MM 11,268

692 JOBS

* Loans approved, closed and funded. ** Loans closed.

PARTICIPATING FINANCING ($000’s) NEWSMALL BUSINESS BANK TOTAL SEED JOBS

Plymouth GI, Plymouth, MA Mayflower Bank $ 950 $ 386 6 Unique Woodworking, Weymouth, MA Rockland Trust Company 1,000 413 6 Position Clicks, Hyannis, MA Eastern Bank 660 274 3 Young’s Bicycle Shop, Nantucket, MA Rockland Trust Company 2,737 759 5 Seekonk Gas and Repair, Inc., Attleboro, MA Charles River Bank 800 290 3 Mass Diesel Performance, Inc, Bellingham, MA Middlesex Savings Bank 412 172 2 Distron Corporation, N. Attleborough, MA Bank of Canton 945 384 18 Dixon, Inc., Northborough, MA Digital Credit Union 860 356 6 Whittemore-Durgin Glass Co., Rockland, MA Rockland Trust Company 325 136 3 Surgical Weight Loss Specialists, Walpole, MA Dedham Savings Bank 1,200 427 8 MD Cabinetry, Inc., Raynham, MA Mechanics Bank 667 241 4 Rejuvenations Salon & Day Spa, Plymouth, MA Mayflower Bank 500 205 5 Wm. F. Borhek Insurance Agency, Halifax, MA Rockland Trust Company 440 180 4 Kia of Dartmouth, Dartmouth, MA Rockland Trust Company 1,920 793 11 Hannoush Jewelers, Warwick, RI Bank of America 1,400 579 4 Champagne & Bibeault, LLC, N. Attleborough, MA Mansfield Bank 385 159 3 Allergy and Asthma Care, P.C., Taunton, MA Bridgewater Savings Bank 1,511 622 2 Heidrea Communications, LLC, Bellingham, MA Bristol County Savings Bank 1,200 466 5 South Coast Laundry, Inc., New Bedford, MA Bridgewater Credit Union 600 251 4 Mike Ahern General Contracting, Mattapan, MA Digital Federal Credit Union 930 385 6 Attleboro Chiropractic Health, Attleboro, MA Mansfield Bank 325 136 3 Childs Engineering Corp., Bellingham, MA Middlesex Savings Bank 705 292 2 Sweet Tomatoes Pizza, Chatham, MA Bank of Cape Cod 425 177 3 Pulmonary Internists & Consult, Hyannis, MA Bank of Cape Cod 420 175 2 Walnut Grove School House, Inc., Fairhaven, MA Bridgewater Credit Union 340 144 1 M. Kilduff Consultants, Inc., Bridgewater, MA Bridgewater Savings Bank 230 98 2 Bo-Tes Imports, LLC, Norwell, MA Rockland Trust Company 465 194 1 A-1 Paving, LLC, Portsmouth, RI Bank Newport 500 209 4 Home Electronic Life Protection, Plainville, MA Bank of America 720 251 5 Route 44 Hyundai, Raynham, MA Bristol County Savings Bank 4,700 1,861 15 East Coast Laundry, LLC, Fall River, MA Rockland Trust Company 500 157 3 Magical Years Early Learning, Halifax, MA Rockland Trust Company 435 170 3 King Gage Engineering, Mendon, MA Middlesex Savings Bank 281 121 1 Dockside Inn, Oak Bluffs, MA Martha’s Vineyard Savings 1,800 559 9 Building Blocks of Barnstable, Centerville, MA Bank of Cape Cod 730 293 5 Matt’s Music Center, Weymouth, MA South Shore Savings Bank 560 234 4 Shenkopf & Tomasik Eye Care, Yarmouth, MA Cape Cod Five Cents Savings 575 241 3 Dowd Plumbing, LLC, Stoughton, MA Rockland Trust Company 300 127 2 Dharma Ink Tattoo, Easton, MA North Easton Savings Bank 400 168 3 XYZ Sheet Metal, Inc., Abington, MA Rockland Trust Company 555 232 4 Scituate Boat Works, Scituate, MA Bridgewater Savings Bank 510 213 4 Eaton Chiropractic Inc., Taunton, MA Webster Bank 400 167 3 Attwater, LLC, Newport, RI Bank of Newport 1,500 474 5 Supreme Pizza & Subs, Falmouth, MA Bank of Cape Cod 547 182 2 Eastham Hardware, Inc., Eastham, MA Bank of Cape Cod 2,600 1,073 2

SUBTOTAL LOANS $39,965 $15,426 199

TOTAL “504” LOANS 2 $84,420 $31,775 419

SEED PORTFOLIOOctober 1, 2011 – September 30, 2012

SBA “504” PROGRAMSMALL BUSINESS INVESTMENT($000’s)

Reynolds DeWalt Printing, Inc., New Bedford, MA $ 250 Adaptive Instruments, Hudson, MA 450 JRM Holdings / Speidel, Inc., East Providence, RI 450 Superior Apparel, Inc., Fall River, MA 500 Saylent Technologies, Inc., Franklin, MA** 788 LogicBay Corporation, Providence, RI* 662 Tanya’s Creations, Inc., East Providence, RI 250 Education Inc., Plymouth, MA 500 Dover Saddlery, Inc., Littleton, MA 1,000 IDS Holdings, LLC., Manchester, NH* 1,166 Raw Seafoods, Inc., Fall River, MA* 250 48HourPrint.com, Boston, MA** 1,234 Jet Products, LLC., East Bridgewater, MA 500 Mearthane Products Corp., Cranston, RI 650 Little Blue Incite, LLC., Avon, CT* 1,056 Mail Computer Services, Inc., West Bridgewater, MA** 2,236 Single Digits, Inc., Manchester, NH 700 Medport, LLC., Providence, RI 850

Precision Fabricators, Stoughton, MA 400

National Marker Company, North Smithfield, RI 550

TOTAL SEED VENTURES LP INVESTMENTS $14,442* Two investments made. **Three investments made.

LOANS MADE BY PROGRAM

7

SEED VENTURES LP2006-2012

PARTICIPATING FINANCING ($000’s) NEW

SMALL BUSINESS BANK TOTAL SEED JOBS

Next Generation Martial Arts, Holliston, MA1 Middlesex Savings Bank $ 420 $ 168 1 Barrett Distribution Center, Franklin, MA1 Bank of America 2,392 650 7 The Bog, LLC, Kingston, MA1 Rockland Trust Company 4,050 950 13 Medical Component Spec., Bellingham, MA1 Middlesex Savings Bank 1,000 415 3 Old Colony Adult Day Health, Brockton, MA1 Rockland Trust Company 1,580 620 9 Jordi Labs, LLC, Mansfield, MA1 Middlesex Savings Bank 1,575 651 4 Haddad’s Ocean Café, Marshfield, MA1 S-Bank 2,900 1,191 19 Luckystar Petroleum, Stoughton, MA1 Rockland Trust Company 800 251 4 Milford Hotel, Milford, MA1 Bristol County Savings Bank 8,463 3,041 30 Dunkin Donuts, Taunton, MA1 Bristol County Savings Bank 1,600 658 11 Health Care Staffing, Randolph, MA1 Mechanics Cooperative Bank 1,327 550 9 Swansea Dental Assoc., PC, Swansea, MA1 Mechanics Cooperative Bank 355 150 3 Yarmouth Port Village Store, Osterville, MA1 Bank of Cape Cod 600 251 4 Besthands Construction & Repair, Easton, MA1 Middlesex Savings Bank 480 202 3 Touch Therapies, Leominster, MA1 Digital Federal Credit Union 443 177 2 Reidar’s Manufacturing Inc., New Bedford, MA1 Bristol County Savings Bank 1,885 779 11 Mockingbird Restaurant, E. Bridgewater, MA1 Mechanics Cooperative Bank 2,618 1,047 16 Newport Vineyards & Winery, Middletown, RI1 Farm Credit East 5,294 1,848 19 Quarterdeck Lounge, Hyannis, MA1 Cape Cod Five Cents Savings 993 412 6 Cape Diagnostics Imaging, Yarmouth, MA1 Cape Cod Five Cents Savings 920 374 3 LaCerta Group, Inc., Mansfield, MA1 Citizens Bank 1,775 732 12 Bettencourt Machine Co., W. Bridgewater, MA1 Webster Bank 475 199 15 Bettencourt Machine Co., W. Bridgewater, MA1 Webster Bank 265 107 15 North Main St. Self Storage, Woonsocket, RI1 Charles River Bank 2,245 926 1

SUBTOTAL “504” LOANS 1 $44,455 $16,349 220

TOTAL “504” LOANS 2 $84,420 $31,775 4191. Loans approved in Fiscal Year 2012 but not yet closed. 2. Loans approved and closed in FY 2012.

PARTICIPATING FINANCING ($000’s) NEW

SMALL BUSINESS BANK TOTAL SEED JOBS

Cellcom, Inc., Swansea, MA BankFive $ 430 $ 65 2 Undercover, Inc., New Bedford, MA Citizens Union Savings 208 82 8 Sagamore Inn, Bourne, MA Cape Cod Five Cents Savings 660 100 28 Anchor Financial Insurance Group, Dedham, MA Webster Bank 375 38 2 Regency Police Supply, Inc., Hyannis, MA Cape Cod Five Cents Savings 250 75 5 Marathon Industries, Inc., Warwick, RI NA 130 60 2 Woodside Montessori Academy, Millis, MA* NA 80 30 3 Medical Components Specialists, Bellingham, MA Middlesex Savings Bank 1,100 100 4 Lamour by Design, Inc., Randolph, MA* NA 120 70 11 Total Temp, Inc., Middleborough, MA Eastern Bank 205 82 2 Pool N’ Play, Inc., Brockton, MA NA 60 20 5 Learning Garden, Inc., Warwick, RI Greenwood Credit Union 307 76 7 Yarmouth Port Village Store, Yarmouth Port, MA Bank of Cape Cod 910 60 4 Cape Destinations, Harwich, MA Cooperative Bank of Cape Cod 120 48 5 Domingas Hair Salon, Brockton, MA NA 50 50 5 Coffee Milano, Inc., Taunton, MA Mayflower Bank 129 52 4

TOTAL “RLF” LOANS $5,134 $1,008 97* Two loans were made to the small business.

PARTICIPATING FINANCING ($000’s) NEW

SMALL BUSINESS BANK TOTAL SEED JOBS

Galaxy Marine, Inc., Dartmouth, MA NA $ 17 $ 17 2 Taxlady EA, Inc., Pembroke, MA NA 10 10 2 Home Sweet Home Consignments, Melrose, MA NA 46 30 2 Hair Heart & Soul, Inc., Bristol, RI BayCoast Bank 170 50 5 Yoga Antara, LLC, Providence, RI NA 13 10 4 JM Painting & Plastering, LLC, Cranston, RI NA 22 22 2 Dockside Inn, Oak Bluffs, MA Martha’s Vineyard Savings 1,850 50 9 Zing Music Lab, LLC, Barrington, RI NA 20 20 4 G.T. Graphics & Marketing, LLC, Hanson, MA NA 26 26 2 Shining Wonders Preschool, Easton, MA NA 9 9 3 Marathon Industries, Inc., Warwick, RI NA 130 50 2 Woodside Montessori Academy, Millis, MA* NA 80 50 3 Lamour by Design, Inc., Randolph, MA* NA 120 50 11 CurrentVintage, Nantucket, MA NA 25 25 2 Castle Awards, LLC, East Providence, RI NA 36 36 3 Away Café, LLC, Weymouth, MA NA 50 50 2 Bluemoonstone Creations, Providence, RI NA 47 30 1 Crossfit Automile, Inc., Norwood, MA NA 72 47 4 Stock Culinary Market, LLC, Providence, RI NA 70 50 2 Shaggy Chic, Attleboro, MA NA 27 10 4 Twin Oaks Inn, Vineyard Haven, MA* NA 120 90 4 Atlantic Book & Coin, Brewster, MA NA 42 42 2 MaMas Move, Inc., Norwell, MA NA 115 30 17 Mandrake Tattoo, Inc., Raynham, MA NA 26 20 1 WSI Consulting & Education, Narragansett, RI NA 40 40 1

TOTAL “MICRO” LOANS $ 3,183 $864 94* Two loans were made to the small business.

REVOLVING LOAN FUND (RLF)

6

5

MICRO LOAN PROGRAM

SBA “504” PROGRAM (Continued)

BUSINESS ASSISTANCE

WORKSHOPS (27)• FUNDAMENTALS OF PLANNING, PREPARING

FOR AND FINANCING YOUR BUSINESS

• UNDERSTANDING FINANCIAL STATEMENTS

INDIVIDUAL SESSIONS

TOTAL ENTREPRENEURS ASSISTED

486 ENTREPRENEURS

877 ENTREPRENEURS

1,363 ENTREPRENEURS

WORKSHOP SPONSORS: Bridgewater Savings Bank; Cape Cod Five Cents Savings; Martha’s Vineyard Savings Bank;Mayflower Bank; Norwood Bank; Rockland Trust Community Development, LLC; Washington Trust Company; and WesterlyCommunity Credit Union.

PARTICIPATING FINANCING ($000’s) NEW

SMALL BUSINESS BANK TOTAL SEED JOBS

Next Generation Martial Arts, Holliston, MA1 Middlesex Savings Bank $ 420 $ 168 1 Barrett Distribution Center, Franklin, MA1 Bank of America 2,392 650 7 The Bog, LLC, Kingston, MA1 Rockland Trust Company 4,050 950 13 Medical Component Spec., Bellingham, MA1 Middlesex Savings Bank 1,000 415 3 Old Colony Adult Day Health, Brockton, MA1 Rockland Trust Company 1,580 620 9 Jordi Labs, LLC, Mansfield, MA1 Middlesex Savings Bank 1,575 651 4 Haddad’s Ocean Café, Marshfield, MA1 S-Bank 2,900 1,191 19 Luckystar Petroleum, Stoughton, MA1 Rockland Trust Company 800 251 4 Milford Hotel, Milford, MA1 Bristol County Savings Bank 8,463 3,041 30 Dunkin Donuts, Taunton, MA1 Bristol County Savings Bank 1,600 658 11 Health Care Staffing, Randolph, MA1 Mechanics Cooperative Bank 1,327 550 9 Swansea Dental Assoc., PC, Swansea, MA1 Mechanics Cooperative Bank 355 150 3 Yarmouth Port Village Store, Osterville, MA1 Bank of Cape Cod 600 251 4 Besthands Construction & Repair, Easton, MA1 Middlesex Savings Bank 480 202 3 Touch Therapies, Leominster, MA1 Digital Federal Credit Union 443 177 2 Reidar’s Manufacturing Inc., New Bedford, MA1 Bristol County Savings Bank 1,885 779 11 Mockingbird Restaurant, E. Bridgewater, MA1 Mechanics Cooperative Bank 2,618 1,047 16 Newport Vineyards & Winery, Middletown, RI1 Farm Credit East 5,294 1,848 19 Quarterdeck Lounge, Hyannis, MA1 Cape Cod Five Cents Savings 993 412 6 Cape Diagnostics Imaging, Yarmouth, MA1 Cape Cod Five Cents Savings 920 374 3 LaCerta Group, Inc., Mansfield, MA1 Citizens Bank 1,775 732 12 Bettencourt Machine Co., W. Bridgewater, MA1 Webster Bank 475 199 15 Bettencourt Machine Co., W. Bridgewater, MA1 Webster Bank 265 107 15 North Main St. Self Storage, Woonsocket, RI1 Charles River Bank 2,245 926 1

SUBTOTAL “504” LOANS 1 $44,455 $16,349 220

TOTAL “504” LOANS 2 $84,420 $31,775 4191. Loans approved in Fiscal Year 2012 but not yet closed. 2. Loans approved and closed in FY 2012.

PARTICIPATING FINANCING ($000’s) NEW

SMALL BUSINESS BANK TOTAL SEED JOBS

Cellcom, Inc., Swansea, MA BankFive $ 430 $ 65 2 Undercover, Inc., New Bedford, MA Citizens Union Savings 208 82 8 Sagamore Inn, Bourne, MA Cape Cod Five Cents Savings 660 100 28 Anchor Financial Insurance Group, Dedham, MA Webster Bank 375 38 2 Regency Police Supply, Inc., Hyannis, MA Cape Cod Five Cents Savings 250 75 5 Marathon Industries, Inc., Warwick, RI NA 130 60 2 Woodside Montessori Academy, Millis, MA* NA 80 30 3 Medical Components Specialists, Bellingham, MA Middlesex Savings Bank 1,100 100 4 Lamour by Design, Inc., Randolph, MA* NA 120 70 11 Total Temp, Inc., Middleborough, MA Eastern Bank 205 82 2 Pool N’ Play, Inc., Brockton, MA NA 60 20 5 Learning Garden, Inc., Warwick, RI Greenwood Credit Union 307 76 7 Yarmouth Port Village Store, Yarmouth Port, MA Bank of Cape Cod 910 60 4 Cape Destinations, Harwich, MA Cooperative Bank of Cape Cod 120 48 5 Domingas Hair Salon, Brockton, MA NA 50 50 5 Coffee Milano, Inc., Taunton, MA Mayflower Bank 129 52 4

TOTAL “RLF” LOANS $5,134 $1,008 97* Two loans were made to the small business.

PARTICIPATING FINANCING ($000’s) NEW

SMALL BUSINESS BANK TOTAL SEED JOBS

Galaxy Marine, Inc., Dartmouth, MA NA $ 17 $ 17 2 Taxlady EA, Inc., Pembroke, MA NA 10 10 2 Home Sweet Home Consignments, Melrose, MA NA 46 30 2 Hair Heart & Soul, Inc., Bristol, RI BayCoast Bank 170 50 5 Yoga Antara, LLC, Providence, RI NA 13 10 4 JM Painting & Plastering, LLC, Cranston, RI NA 22 22 2 Dockside Inn, Oak Bluffs, MA Martha’s Vineyard Savings 1,850 50 9 Zing Music Lab, LLC, Barrington, RI NA 20 20 4 G.T. Graphics & Marketing, LLC, Hanson, MA NA 26 26 2 Shining Wonders Preschool, Easton, MA NA 9 9 3 Marathon Industries, Inc., Warwick, RI NA 130 50 2 Woodside Montessori Academy, Millis, MA* NA 80 50 3 Lamour by Design, Inc., Randolph, MA* NA 120 50 11 CurrentVintage, Nantucket, MA NA 25 25 2 Castle Awards, LLC, East Providence, RI NA 36 36 3 Away Café, LLC, Weymouth, MA NA 50 50 2 Bluemoonstone Creations, Providence, RI NA 47 30 1 Crossfit Automile, Inc., Norwood, MA NA 72 47 4 Stock Culinary Market, LLC, Providence, RI NA 70 50 2 Shaggy Chic, Attleboro, MA NA 27 10 4 Twin Oaks Inn, Vineyard Haven, MA* NA 120 90 4 Atlantic Book & Coin, Brewster, MA NA 42 42 2 MaMas Move, Inc., Norwell, MA NA 115 30 17 Mandrake Tattoo, Inc., Raynham, MA NA 26 20 1 WSI Consulting & Education, Narragansett, RI NA 40 40 1

TOTAL “MICRO” LOANS $ 3,183 $864 94* Two loans were made to the small business.

REVOLVING LOAN FUND (RLF)

6

5

MICRO LOAN PROGRAM

SBA “504” PROGRAM (Continued)

BUSINESS ASSISTANCE

WORKSHOPS (27)• FUNDAMENTALS OF PLANNING, PREPARING

FOR AND FINANCING YOUR BUSINESS

• UNDERSTANDING FINANCIAL STATEMENTS

INDIVIDUAL SESSIONS

TOTAL ENTREPRENEURS ASSISTED

486 ENTREPRENEURS

877 ENTREPRENEURS

1,363 ENTREPRENEURS

WORKSHOP SPONSORS: Bridgewater Savings Bank; Cape Cod Five Cents Savings; Martha’s Vineyard Savings Bank;Mayflower Bank; Norwood Bank; Rockland Trust Community Development, LLC; Washington Trust Company; and WesterlyCommunity Credit Union.

4

1. Loans approved in Fiscal Year 2012, but not yet closed. 2. Loans approved and closed in FY 2012.

FY ’12* 1983 - 2012**

$ NUMBER OF LOAN PRIVATE NEW JOBSPROGRAM JOBS LOANS AMOUNTS LEVERAGE CREATED

91*SBA 504 $38.2 MM 622 $218.1 MM $451.4 MM 5,170STARTED IN 1983 495 JOBS

1SBA GUARANTY (7A) $.14 MM 135 $41.5 MM $16.4 MM 1,438STARTED IN 1990 6 JOBS

16REVOLVING LOAN FUNDS $1 MM 396 $15.3 MM $126.9 MM 2,383STARTED IN 1984 97 JOBS

ENTERPRISE FUND - 244 $15.7 MM – 1,1441994 to 2005 -

26MICRO LOAN $.86 MM 387 $9.2 MM $12.9 MM 1,133STARTED IN 1994 94 JOBS

134TOTALS $40.2 MM 1,784 $299.8 MM $607.6 MM 11,268

692 JOBS

* Loans approved, closed and funded. ** Loans closed.

PARTICIPATING FINANCING ($000’s) NEWSMALL BUSINESS BANK TOTAL SEED JOBS

Plymouth GI, Plymouth, MA Mayflower Bank $ 950 $ 386 6 Unique Woodworking, Weymouth, MA Rockland Trust Company 1,000 413 6 Position Clicks, Hyannis, MA Eastern Bank 660 274 3 Young’s Bicycle Shop, Nantucket, MA Rockland Trust Company 2,737 759 5 Seekonk Gas and Repair, Inc., Attleboro, MA Charles River Bank 800 290 3 Mass Diesel Performance, Inc, Bellingham, MA Middlesex Savings Bank 412 172 2 Distron Corporation, N. Attleborough, MA Bank of Canton 945 384 18 Dixon, Inc., Northborough, MA Digital Credit Union 860 356 6 Whittemore-Durgin Glass Co., Rockland, MA Rockland Trust Company 325 136 3 Surgical Weight Loss Specialists, Walpole, MA Dedham Savings Bank 1,200 427 8 MD Cabinetry, Inc., Raynham, MA Mechanics Bank 667 241 4 Rejuvenations Salon & Day Spa, Plymouth, MA Mayflower Bank 500 205 5 Wm. F. Borhek Insurance Agency, Halifax, MA Rockland Trust Company 440 180 4 Kia of Dartmouth, Dartmouth, MA Rockland Trust Company 1,920 793 11 Hannoush Jewelers, Warwick, RI Bank of America 1,400 579 4 Champagne & Bibeault, LLC, N. Attleborough, MA Mansfield Bank 385 159 3 Allergy and Asthma Care, P.C., Taunton, MA Bridgewater Savings Bank 1,511 622 2 Heidrea Communications, LLC, Bellingham, MA Bristol County Savings Bank 1,200 466 5 South Coast Laundry, Inc., New Bedford, MA Bridgewater Credit Union 600 251 4 Mike Ahern General Contracting, Mattapan, MA Digital Federal Credit Union 930 385 6 Attleboro Chiropractic Health, Attleboro, MA Mansfield Bank 325 136 3 Childs Engineering Corp., Bellingham, MA Middlesex Savings Bank 705 292 2 Sweet Tomatoes Pizza, Chatham, MA Bank of Cape Cod 425 177 3 Pulmonary Internists & Consult, Hyannis, MA Bank of Cape Cod 420 175 2 Walnut Grove School House, Inc., Fairhaven, MA Bridgewater Credit Union 340 144 1 M. Kilduff Consultants, Inc., Bridgewater, MA Bridgewater Savings Bank 230 98 2 Bo-Tes Imports, LLC, Norwell, MA Rockland Trust Company 465 194 1 A-1 Paving, LLC, Portsmouth, RI Bank Newport 500 209 4 Home Electronic Life Protection, Plainville, MA Bank of America 720 251 5 Route 44 Hyundai, Raynham, MA Bristol County Savings Bank 4,700 1,861 15 East Coast Laundry, LLC, Fall River, MA Rockland Trust Company 500 157 3 Magical Years Early Learning, Halifax, MA Rockland Trust Company 435 170 3 King Gage Engineering, Mendon, MA Middlesex Savings Bank 281 121 1 Dockside Inn, Oak Bluffs, MA Martha’s Vineyard Savings 1,800 559 9 Building Blocks of Barnstable, Centerville, MA Bank of Cape Cod 730 293 5 Matt’s Music Center, Weymouth, MA South Shore Savings Bank 560 234 4 Shenkopf & Tomasik Eye Care, Yarmouth, MA Cape Cod Five Cents Savings 575 241 3 Dowd Plumbing, LLC, Stoughton, MA Rockland Trust Company 300 127 2 Dharma Ink Tattoo, Easton, MA North Easton Savings Bank 400 168 3 XYZ Sheet Metal, Inc., Abington, MA Rockland Trust Company 555 232 4 Scituate Boat Works, Scituate, MA Bridgewater Savings Bank 510 213 4 Eaton Chiropractic Inc., Taunton, MA Webster Bank 400 167 3 Attwater, LLC, Newport, RI Bank of Newport 1,500 474 5 Supreme Pizza & Subs, Falmouth, MA Bank of Cape Cod 547 182 2 Eastham Hardware, Inc., Eastham, MA Bank of Cape Cod 2,600 1,073 2

SUBTOTAL LOANS $39,965 $15,426 199

TOTAL “504” LOANS 2 $84,420 $31,775 419

SEED PORTFOLIOOctober 1, 2011 – September 30, 2012

SBA “504” PROGRAMSMALL BUSINESS INVESTMENT($000’s)

Reynolds DeWalt Printing, Inc., New Bedford, MA $ 250 Adaptive Instruments, Hudson, MA 450 JRM Holdings / Speidel, Inc., East Providence, RI 450 Superior Apparel, Inc., Fall River, MA 500 Saylent Technologies, Inc., Franklin, MA** 788 LogicBay Corporation, Providence, RI* 662 Tanya’s Creations, Inc., East Providence, RI 250 Education Inc., Plymouth, MA 500 Dover Saddlery, Inc., Littleton, MA 1,000 IDS Holdings, LLC., Manchester, NH* 1,166 Raw Seafoods, Inc., Fall River, MA* 250 48HourPrint.com, Boston, MA** 1,234 Jet Products, LLC., East Bridgewater, MA 500 Mearthane Products Corp., Cranston, RI 650 Little Blue Incite, LLC., Avon, CT* 1,056 Mail Computer Services, Inc., West Bridgewater, MA** 2,236 Single Digits, Inc., Manchester, NH 700 Medport, LLC., Providence, RI 850

Precision Fabricators, Stoughton, MA 400

National Marker Company, North Smithfield, RI 550

TOTAL SEED VENTURES LP INVESTMENTS $14,442* Two investments made. **Three investments made.

LOANS MADE BY PROGRAM

7

SEED VENTURES LP2006-2012

BALANCE SHEETASSETS 9/30/12* 9/30/11Cash-Unrestricted ................................................$ 537,092 ............................$ 712,264Cash-Loan Funds (Restricted) ................................1,626,399 ..............................1,784,555Interest Receivable........................................................26,064 ......................................6,291Notes Receivable - Loan Funds ..............................4,760,609 ..............................4,204,466Grant Receivable ..........................................................64,085 ..................................122,536Prepaid Expenses ..........................................................5,596 ....................................14,021Accounts Receivable ..................................................115,006 ....................................90,442Fixed Assets (Net) ......................................................718,400 ..................................740,511__________ __________

TOTAL ASSETS....................................................$ 7,853,251 ............................$ 7,675,086

LIABILITIES & FUND BALANCEAccounts Payable ................................................$ 20,078 ............................$ 35,118Accrued Expenses ......................................................111,622 ..................................106,978Client Deposits ..............................................................11,250 ....................................16,950Deferred Revenue ..............................................................214 ........................................318Notes payable — SBA ............................................1,402,250 .............................. 1,388,476Mortgage Payable ......................................................488,864 ..................................520,348__________ __________

TOTAL LIABILITIES ............................................$ 2,034,278 ............................$ 2,068,188

Fund Balance ........................................................$ 5,818,973 ............................$ 5,606,898__________ __________

TOTAL LIABILITIES & FUND BALANCE..............$ 7,853,251 ............................$ 7,675,086

INCOME STATEMENTINCOME 9/30/12* 9/30/11Federal Revenue ................................................$ 384,252 ............................$ 530,804State Revenue ............................................................125,000 ............................................0Other Revenue ............................................................349,843 ..................................330,668Interest ........................................................................284,761 ..................................260,846Fees..........................................................................1,043,605 ..............................1,037,399__________ __________

TOTAL INCOME ..................................................$ 2,187,461 ............................$ 2,159,717

EXPENSESSalaries & Wages..................................................$ 1,307,847 ............................$ 1,209,365Consultants....................................................................93,370 ..................................125,438Fringe Benefits ............................................................136,572 ..................................142,309Payroll Taxes ................................................................95,500 ....................................88,156Interest ..........................................................................30,470 ....................................30,701Depreciation ..................................................................26,802 ....................................26,034Office & Other..............................................................236,487 ..................................246,596__________ __________

TOTAL EXPENSES ..............................................$ 1,927,048 ............................$ 1,868,599

EXCESS INCOME OVER EXPENSES ................$ 260,413 ............................$ 291,118

LOANS WRITTEN OFF ..............................................(48,338) ..................................(33,467)__________ __________

EXCESS INCOME OVER EXPENSES .............. $ 212,075 ............................$ 257,651* Preliminary

3

RLF PROGRAM

HOW IT WORKS

ELIGIBLE BUSINESSES

ELIGIBLE PROJECT

TERM AND RATE

MICRO LOANPROGRAM

HOW IT WORKS

ELIGIBLE BUSINESSES

TERM AND RATE

SEED VENTURES LP

HOW IT WORKS

ELIGIBLE BUSINESSES

INVESTMENTS &USE OF FUNDS

TERM AND RATE

PARTICIPATINGINVESTORS

SEED established the Revolving Loan Fund (RLF) Program with grants from the U.S.

Economic Development Administration and the State of Massachusetts. Since 1984 SEED

has received a total of $3.2 million in grants to provide gap financing for small businesses.

Under the RLF Program, SEED provides loans up to $200,000 which can be used as the

down payment on a larger project. The SEED portion of the project is usually 30 percent but

can be larger if there is a demonstrated gap.

Manufacturing, agriculture and fishing, retail, wholesale and service businesses; net worth not

in excess of $2 million; less than $750,000 average net profit after taxes during previous two

years.

Acquisition of land and buildings; construction and/or renovation; equipment and furnishings;

and working capital. Job creation or retention is required.

Up to 10 years with amortization schedules up to 20 years and an interest rate below market

and fixed, currently 5%.

SEED administers this program with $1.2 million in grants from Massachusetts, and loans

from SBA. Under SBA’s Micro Loan Program, SEED has access to $5 million in loan funds to

assist small businesses in Massachusetts and Rhode Island.The following banks have

contributed to the reserve fund required for this program: Bank of America; Bristol County

Savings Bank; Citizens Bank; Eastern Bank; Rockland Trust Company; Sovereign Bank; and

Webster Bank.

Under the Micro Loan Program, SEED provides loans up to $50,000 which can be used for

working capital, machinery and equipment, and furniture and fixtures.

Manufacturing, retail, wholesale and service businesses.

The term is up to six years. The interest rate is close to market and fixed, currently 6%.

This $20 million fund, sponsored by SEED and licensed by SBA as a Small Business

Investment Company (SBIC) in 2005, specializes in subordinated debt, senior debt and equity

investments in small and medium size businesses. The fund focuses on Massachusetts and

Rhode Island, but can make investments in New England.

The investment process formally begins with the submission of a Business Plan which

includes: a brief overview of the company; experience and background of key management;

description of the company’s products and/or services; analysis of the service market;

discussion of the company’s strategic plan; financial history and projections; amount of

financing required and use of funds; and personal financial statement for the principals.

Investment opportunities are presented to the Investment Committee for review and final

approval.

Companies with a net worth of $18 million or less, and an average net income in the last two

years of $6 million or less; annual sales of $1.5 million or more; positive cash flow; and

significant growth potential.

Investments range from $250,000 to $1.25 million, although larger transactions can be made.

The use of funds includes: strategic acquisitions; buyouts; recapitalizations; capital to support

growth; and equipment and real estate purchases.

Up to 7 years maturity; up to two years interest only period; interest of 12% to 14%; and

warrants or a similar equity related security.

BankFive; Bank of America CDC; Bridgewater Savings Bank; Bristol County Savings Bank;

Eastern Bank; Citizens Bank; BayCoast Bank; Greater Fall River Development Corporation;

The Life Insurance Community Investment Initiative, LLC; Middlesex Savings Bank; The

Property and Casualty Initiative, LLC; Rockland Trust Company; Sovereign Bank, FSB; TD

Bank, NA; and Webster Financial Corporation.

8

SEED’S FINANCIAL STATEMENT

9 2

BACKGROUND

SBA 504

TERM AND RATE

ELIGIBLE BUSINESSES

ELIGIBLE PROJECT

MINIMUM AND MAXIMUM

JOB REQUIREMENT

ABOUT SEED CORPORATION

The South Eastern Economic Development (SEED) Corporation was established in1982 as a Chapter 180 non-profit corporation under the Massachusetts General Laws.Late that year, SEED was certified by the U.S. Small Business Administration (SBA) topackage loans under the 504 Program. SEED’s mandate is to assist small businessesto start up, expand and create new jobs.

In the fulfillment of its mission, SEED has also become: a Community DevelopmentFinancial Institution (CDFI) under the U.S. Department of the Treasury; a CommunityAdvantage Lender under SBA’s 7A Guaranty Program; and an Intermediary Lenderunder the SBA Micro Loan Program.

SEED’s geographic coverage presently includes Massachusetts and Rhode Island.SEED has 200 members and 40 directors. The membership represents: communitybusiness organizations; local economic development officials; financial institutions; andsmall businesses. SEED has a staff of fourteen. Administrative costs are coveredthrough fees, interest on loans, and grant funds for small business technical assistance.

SEED’s financing programs are designed to work in conjunction with the banks in theregion. In some cases, SEED’s role is to assist and support small businesses in theirstart up phase until they are ready for bank financing.

SEED runs three programs which provide loans ranging from $1,000 to $5.5 million.They are: the SBA 504 Program; the Revolving Loan Fund; and the Micro Loan Program.

SEED’S LOAN PROGRAMS

Through the SBA 504 Program, a small business can obtain up to 90 percent financingfor a fixed asset project. A bank selected by the applicant finances 50 percent of theproject and takes first position on the project collateral. An SBA 504 debenture providesup to 40 percent in second position, and the applicant provides the remaining 10 percent.The bank portion is financed at conventional rates and terms. SEED staff is responsiblefor all the “504” paperwork.

Ten years for machinery and equipment and 20 years for real estate projects. Interestrate is fixed and close to the prime rate. Last year’s rate averaged 4.3% fixed.

For-profit corporation, partnership or proprietorship; industrial or commercial enterprise;net worth not in excess of $15 million; less than $5 million average net profit after taxesduring previous two years.

Acquisition of land and buildings; construction and/or renovation; leaseholdimprovements; machinery and equipment; furniture and fixtures; interim interest; andprofessional fees.

A minimum of $50,000 (a total project of $125,000), and maximum of $5.5 million on aproject of $13.75 million or more. On projects smaller than $300,000, SEED evaluatesthe benefits to the client, and may use its Revolving Loan Fund.

One job for each $65,000 of SBA investment over a period of two years. The jobrequirement may be waived by meeting public policy goals.

OFFICERS AND DIRECTORS2011 - 2012

Chair - Ferdinand T. Kelley Vice Chair - Richard L. Shafer, Econ. Dev. Dir., Taunton Office of Economic & Community Dev.

Vice Chair - Gerard Nadeau, EVP/Senior Lender, Rockland Trust CompanyTreasurer - William M. Barnes, SVP, Citizens Bank

Assistant Treasurer - Lorraine A. Travers, C.P.A., C.F.P.Clerk - William D. Lewis, VP, Bristol County Savings Bank

Assistant Clerk - Roy Nascimento, President & CEO, New Bedford Area Chamber of CommercePast Chair - James McEvoy, Regional Vice President, TD Bank

* * *

Paul W. Anghinetti, SVP Business Banking Market Executive, Bank of AmericaDavid Augustinho, Ex. Dir., Cape & Islands Workforce Investment Board

Kerrie Babin, President, Taunton Area Chamber of CommerceElizabeth K. Balaschak, Esq., Attorney at Law

John J. Biggio, VP & Senior Loan Officer, Mayflower BankElizabeth Bridgewater, Ex. Dir., Community Development PartnershipPaul T. Carey, Sr. Commercial Lender, Digital Federal Credit Union

Wayne Carvalho, VP & Senior Commercial Lender, First Citizens Federal Credit UnionPasquale Ciaramella, Executive Director, Old Colony Planning Council

Daniel Conrad, First SVP, Mansfield BankChristopher Cooney, President & CEO, Metro South Chamber of Commerce

Adriana Dawson, State Director, RI Small Business Development CenterCarmen Diaz-Jusino, Program Director, Center for Women & Enterprise, RI

Stephen DiPrete, SVP, Eastern BankStephen J. Donahue, VP Commercial Sales, Donahue Associates Realtors

Charles Dwyer, VP, Middlesex Savings BankAna C. Dyer, SVP, Webster Bank

Bradford P. Egan, EVP, Martha’s Vineyard Savings BankDenis J. Hanks, Ex. Dir., Plymouth Area Chamber of Commerce

Donald G. Isles, VP, Dedham Institution for SavingsPaul S. Medeiros, SVP & Senior Lender, BankFive

Jack B. Meehl, Jr., Principal, Ashberry Street AdvisorsJennifer Menard, Ex. Dir., SouthCoast Development Partnership

Jeffrey P. Pineault, CFO Lafrance Hospitality CompanyRobert Reisner, VP/Commercial Lending, Cape Cod Five

Douglas Rodrigues, CPA, D.E. Rodrigues & Company, Inc.Edward F. Sousa, SVP/Senior Commercial Lender, Bridgewater Savings Bank

Nancy E. Stokes, SVP, Mechanics Cooperative BankCarl W. Taber, EVP & Chief Lending Officer, BayCoast BankMary Waldron, Ex. Dir., Brockton 21st Century Corporation

Friend S. Weiler, SVP/Commercial Lending, HarborOne Credit UnionWilliam Welsh, Jr., Chair, RI Chapter of SCORE

STAFFMaria Gooch-Smith, Executive Director

Tamarah Bacon, Business Development & Assistance ManagerFrank Celino, VP/Business Development Officer

Ling Ling Chang, Business Manager / CPAJason Croghan, Adm. Assistant

Ann Desrosiers, VP/Operations & Portfolio ManagementWilliam Diskin, Business Assistance Officer

Laurie Driscoll, AVP/Commercial Loan OfficerLisa Holmes, SVP/Lending Team Leader

Angela Knight, Marketing & Business Assistance OfficerSusann Patterson, First VP/Cape Cod Bus. Development Officer

Anne Rounds, AVP/Closing ManagerSidonia Silva-Reyes, Commercial Lending & Servicing Officer

Katherine Torres, Administrative OfficerAnne Trevisani, AVP/Commercial Loan Officer

Lindsey Williams, AVP/Commercial Credit AnalystThomas Wooters, VP/Manager, SEED Ventures LP

FERDINAND KELLEYChairman of the Board

Report to the Corporation

ABOUT THE COVER: The Annual Report Cover depicts some of the small businesses financed by SEED this past year. Weapologize for not being able to include everyone. SEED Corporation, 80 Dean Street, Taunton, MA 02780 • (508) 822-1020.

1

Melinda AilesStephen AlmeidaAnn M. AugerKerrie BabinJoseph T. Baptista, Jr.Tim BaurleyWilliam G. BerardiPaula BotelhoChad BrubakerRita BurkeRussell BurkeRoger A. CabralLawrence CameronMichael CarrieroWayne CarvalhoTerrance A. CharestMichael ChatwinJohn F. ClarkRobert F. CollinsDaniel ConradGeorge Couto

Manuel DaRosaPeter Dello RussoLinda DeMarcoRaymond A. DionneJohn DuclosWilliam R. Eccles, Jr.Nancy EyreRichard FarmerBruce E. FernandesRoss J. ForbesPaul A. GalopCynthia GilchrestJeanne GirardJune GoguenJohn Paul GomesMelodie HansonDean HarrisonWarren R. HartwellNorman A. Hayes, IIICarol S. HegartyHal Horvat

Robert Howard, Jr.Steven J. IngallsLisa KaminskiMike KehoeValerie LacasseRichard L. LaFranceJack LankStuart A. LawrenceMatthew R. LedinWilliam LewisGary LibmanManuel Louis LopezBill LyndonDonna McKennaCarol MeasorAnthony MedeirosJoan M. MedeirosPaul S. MedeirosSally O. MedeirosBecky MelloJennifer Menard

Willitts MendoncaDan MorrisonMatthew A. MorrisseyBetty-Ann Mullins Roy NascimentoKevin A. NeryJonathan C. NeunerCaroline NoratoSeamus M. O’ConnellGregory F. O’DonnellStephen C. PeckKevin PellandRobert PellegriniLouis J. PetrovicNiko Phillips-DiazJeffrey P. PineaultRichard V. PoyantJanice E. RobbinsDouglas RodriguesHarold Rose, Jr.Peter E. Selley

Richard ShaferGlenn ShermanLarry SilviaStephen C. SmithEdward F. SousaAndrew K. SpringerLinda SternfeltNancy StokesLeonard SullivanCarol SullivanCarl W. TaberManuel J. TavaresLouis T. TeixeiraPamela TosiDebra TowerLorraine A. TraversLuke P. TravisPhil C. VecchioJohn Whalen, Jr.Marilyn WhalleyG. Greg White

Plymouth & Norfolk Counties

David AugustinhoElizabeth BalaschakElizabeth BridgewaterSteven J. CronenSean DalyCharles DeSimoneBradford Egan

Paul T. GarganigoMichael GiancolaShari L. HayesRobert A. LadiciccoBob JacksonDebi JamesLiz Kane

Timothy LoweJames McEvoyElizabeth McNicholsThomas MolloyDan MorrisonTom O’RourkeMarie Oliva

Michael PetruzzoRobert E. ReisnerChristopher E. RichardsEdward A. RubelWilliam L. SkinnerPeter Q. SmithStephen J. Spitz

Ron StandishRobert A. TalermanMichael TulmanVeronica TorresPaul J. WattsAndrew P. Young

Barnstable, Dukes and Nantucket Counties

10

MEMBERS 2011-2012

Bruce AndersonPaul AnghinettiLauren BakkenWilliam M. BarnesJohn J. BiggioJohn ButlerFrank CamachoPaul T. CareyDaniel CaseyPasquale CiaramellaTimothy CoeChristopher CooneyJohn S. DavisonStephen G. De Castro

Stephen DiPreteJulia DixonStephen J. DonahueCharles DwyerLinda FountainPatrick J. GaughanJoseph GesualdoGregory GlennonValerie GlynnRichard GoneauCarolyn GreenMaureen GregoryDavid HamburgerDenis J. Hanks

James HanlonJohn T. HayesJim HorriganBruce G. HughesTom IrvingDonald G. Isles Roberta JacksonWayne A. JanelleMark KearinsFerdinand T. KelleyThomas G. KinchlaJulie A. LanePaul MarascoMayla Martin

Jeni Lynn MatherMaryEllen MaynesCheryl McCormickJack B. Meehl, Jr.John MoranMichael J. MoranGerard NadeauCharles NadlerMatthew J. NutterThomas O’RourkeRichard L. PetersonLawrence J. PitmanMave ResnickJoan Richards

Frank RocheMeagan RundellMichael D. SavageFrank SebastianStephen SooyBrian J. TaylorEllen ThomasDaniel K. TroutJames TynanNathan TynanMary VigeantMary WaldronFriend S. Weiler

Bristol County

Denise BargeBob BillingtonRichard BowieAnthony CapuanoStacey CarterJohn Cronin

Andriana DawsonCarmen Diaz-JusinoAna C. DyerMichael A. Ferrara, Jr.Timothy FloodBritta Gobitas

Gary J. HeidelDoug JoblingTom KellyJoe KriesbergRichard LabrecqueHelenmary Lauth

Roy LauthSandra McNamara LenLen MorrisseyTyler OtfinoskiBharat PatelChristopher Rhodes

Bonnie SiroisRobert A. SkurkaArthur SpeaksHeather StormeWilliam Welsh, Jr.Nelson White

Rhode Island & Massachusetts/Other

With the region’s economy finally improving,SEED increased its lending to small businessesby 20 percent in Fiscal Year 2012. Under allits programs, SEED made 134 loans totaling$40 million. These loans leveraged $73million in bank loans and private funds,and assisted in the creation of 692 newjobs.

This past year, working with the region’sfinancial institutions, SEED approved 46 loansunder the SBA 504 Program, and closed onanother 45, for a total of 91 loans representing$38 million. So far, SEED has made 622 SBA504 loans totaling $218 million and creating5,170 jobs.

SEED’s Revolving Loan Fund (RLF)provides loans up to $200,000 whichrepresent a portion of the total financingneeded. These loans assist small businesseswith working capital and fixed asset projects,and are subordinate to the participatingfinancial institution. So far, SEED has made396 RLF loans totaling $15 million, andcreating 2,383 new jobs.

SBA 504 loans, which finance primarily thepurchase and improvement of business realestate in participation with the region’s banks,provided small businesses with the lowestfixed rates in years, on average 4.3 percentfixed for 20 years. The lower down payment,frequently only 10 percent instead of theconventional 20 to 25 percent, enabled smallbusinesses to conserve working capital.

In August, SEED received a $1 million grantaward from the Community DevelopmentFinancial Institution (CDFI) Fund under the

U.S. Department of the Treasury. The grantincreased SEED’s loan capital base to $6million, and has enabled SEED to continuemeeting the demand for gap loans up to$200,000. SEED also borrowed additionalfunds from SBA to continue making microloans up to $50,000.

As the region’s local development companyfor the last 30 years, SEED has made 1,784loans totaling $300 million, leveraging $608million in private funds, and creating11,268 jobs. SEED’s total current loanportfolio balance is $105 million.

As the regional SBA Intermediary for theMicro Loan Program, SEED continued tomake micro loans and conduct its BusinessAssistance Program, which includes smallbusiness workshops, individual businessassistance, and a small business library. So far,SEED has made 387 micro loans totaling$9 million and creating 1,133 new jobs.

This past year, SEED held 27 workshopsattended by 486 prospective and existingentrepreneurs, and provided 877 businessassistance sessions for a total of 1,363individuals. The workshops taught the basicson starting and operating a small business,and understanding financial statements andcash flow.

SEED Ventures LP, a $20 million mezzanineand quasi equity fund designed to assist theregion’s growing businesses, was sponsoredby SEED and licensed by SBA in 2005 as aSmall Business Investment Company (SBIC).The Fund has made 30 investmentstotaling $14.4 million. Investments range

from $250,000 to $1.25 million in companieswith potential for growth and job creation.

For their continued support, we would like tothank the following: the SoutheasternRegional Planning and EconomicDevelopment District (SRPEDD); the U.S.Small Business Administration (SBA); the U.S.Economic Development Administration (EDA);MassDevelopment: the MA Executive Office ofHousing and Economic Development; theU.S. Department of Agriculture (USDA); theTown of Wareham; the banking community;the region’s legislators; our economicdevelopment partners; and our smallbusinesses.

We are honored to serve our region and itssmall businesses as SEED Chair andExecutive Director, and as members of avery effective team: a highly professionalBoard of Directors; dedicated and competentmembers of the Loan Review Committee,Micro Loan Committee, and NominatingCommittee; and a very capable and loyal staff.

Thank you all for your trust and support.

Respectfully submitted,

Ferdinand KelleyChairman of the Board

Maria Gooch-SmithExecutive Director

MARIA GOOCH-SMITHExecutive Director

Rejuvenations Salon & Day SpaPlymouth, MA

Eastham, MAAttleboro, MA The Attwater Newport, RI

Eaton ChiropracticTaunton, MA

Walnut Grove School HouseFairhaven, MA

Warwick, RI

Bourne, MA

Magical Years Early LearningHalifax, MA

SOUTH EASTERN ECONOMIC DEVELOPMENT CORPORATION

80 DEAN STREET, TAUNTON, MA 02780 (508) 822-1020 www.seedcorp.com

Route 44 Hyundai, Raynham, MAScituate Boat WorksScituate, MA

William F. Borhek Insurance AgencyHalifax, MA

Fall River, MA

Plymouth GIPlymouth, MA

Brockton, MA Distron Corp.North Attleborough, MA

30 Years of Service to Small Businesses

Nantucket, MA

Dockside Inn, Oak Bluffs, MA

Away CaféWeymouth, MA

Yoga AntaraProvidence, RI

ANNUAL REPORT 2012