Lending Program Strengthened to Support Recovery Efforts
In response to the COVID-19 pandemic, the Chamber and its economic development arm, the North Central Massachusetts Development Corporation (NCMDC), have launched an Economic Recovery Fund to provide loans to eligible small businesses that have been negatively impacted. The idea for this new fund came from several financial institutions in the region that approached the Chamber with this concept of a recovery fund supported by financial institutions and other prominent businesses in the region.
Berkshire Bank, Fidelity Bank and Digital Federal Credit Union were the founding sponsors of this fund and have each contributed $100,000 to help capitalize the recovery effort. In addition, the NCMDC contributed $100,000 of its own money to the new fund. Workers’ Credit Union and bankHometown have also signed on to support the initiative with contributions of $10,000 and $5,000 respectively.
In addition, the NCMDC also secured a $500,000 loan from the U.S. Small Business Administration to bolster its micro-lending program and expand its lending efforts to support small businesses in the region. The loan must be repaid over a ten-year period. Grant dollars received from the Commonwealth of Massachusetts were also used to help support the SBA’s requirement for matching funds for a Loan Loss Reserve.
“Access to capital is a major issue for many small businesses, who are struggling to survive amid the unprecedented economic disruption caused by the COVID-19 public health crisis,” said Roy M. Nascimento, President & CEO of the North Central Massachusetts Chamber of Commerce. “This infusion of much needed capital will help shore up our lending capacity and allow us to continue to support small businesses who need financing but are unable to secure it through traditional means.”
For more information or to inquire about a loan, please contact Sandie Cataldo, Economic Development Manager at 978.353.7600 or email scataldo@northcentralmass.com. Businesses or organizations interested in supporting the new Economic Recovery Fund should contact Roy Nascimento, President & CEO at rnascimento@northcentralmass.com
