North Central Massachusetts Development Corporation Receives Federal Loan to Recapitalize Microloan Program
The North Central Massachusetts Development Corporation has received 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 the NCMDC received from the Commonwealth of Massachusetts were also used to help support the SBA’s requirement for matching funds for a Loan Loss Reserve.
With these funds, the NCMDC can continue to provide SBA loans of up to $50,000 to small businesses in the region. The U.S. Small Business Administration provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers. This is the third such SBA loan that the NCMDC has received since being approved as an SBA Microloan Intermediary in 2015. These loans have allowed the NCMDC to grant nearly $1,000,000 in SBA microloans to start ups and expanding businesses.
“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 and the North Central Massachusetts Development Corporation. “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.”
The North Central Massachusetts Development Corporation (NCMDC) is the non-profit economic development arm of the North Central Massachusetts Chamber of Commerce with the mission of creating jobs and improving the economy. NCMDC is certified by the U.S. Small Business Administration (SBA), and the U.S. Department of the Treasury under the Community Development Financial Institutions (CDFI) Program. The NCMDC works in partnership with local banks, credit unions, chambers of commerce and area nonprofits to support emerging microenterprises, small businesses, and community projects in 76 communities in Worcester, Middlesex and Franklin Counties with loans and business assistance. Since 1996, the NCMDC has granted over $7,000,000 in loans to small businesses to help grow jobs and the economy in the region.
For more information about applying for a microloans or the other loan programs available through the NCMDC, please contact Sandie Cataldo, Economic Development Manager at 978-353-7600 ext 232 or visit https://www.choosenorthcentral.com/lending/.