North Central Massachusetts Receives $946,000 EDA Grant To Launch New Revolving Loan Fund
The North Central Massachusetts Development Corporation (NCMDC), the economic development arm of the North Central Massachusetts Chamber of Commerce, has recently been awarded a $946,000 EDA CARES Act Recovery Assistance grant from the U.S. Department of Commerce’s Economic Development Administration (EDA).
This grant will be used to capitalize and administer a new Revolving Loan Fund to provide loans to coronavirus-impacted small businesses in North Central Massachusetts. This new loan fund will help supplement the NCMDC’s existing efforts to provide support to local businesses and spur investment in the region.
With these funds, the NCMDC will provide fixed rate loans of up to $150,000 to start-up and existing small businesses in the region. The loans will be provided with flexible terms, low fees and interest rates as low as 1% for existing businesses and 5% for start-up businesses. Monthly payments will be deferred for up to one year on the loans, depending on the situation. Each loan offered will be tailored to the needs of the borrower after careful analysis and underwriting. Loan amortization will vary based on use of funds and underwriting with monthly repayment terms up to ten years. At maturity, loans may be extended for up to five years by modifying note terms at market rates and recasting or restructuring payments.
Loans made by the NCMDC can be used for working capital; operating expenses and costs; leasehold improvements; machinery and equipment; furniture and fixtures; start-up costs for a new business; purchasing or expanding real estate related to the business; and the refinancing of existing business debt. To be eligible, a loan applicant must be a for-profit enterprise; be located in one of the NCMDC service communities; create or retain at least one job for each $20,000 of funds provided; and show economic injury or funding needed for re-opening and recovery as a result of COVID-19. In addition, start-up businesses are required to provide a 10% equity injection.
“This infusion of capital will reinforce our lending capacity and allow us to continue to support the economic recovery of North Central Massachusetts with low interest loans.” said Roy M. Nascimento, President & CEO of the North Central Massachusetts Chamber of Commerce and the North Central Massachusetts Development Corporation. “We are appreciative of the Economic Development Administration for their confidence in us. These funds will go a long way in helping many vulnerable small businesses regain their footing from the COVID-19 pandemic.”
For more information or to inquire about a loan, please contact Sandie Cataldo, Economic Development Manager at 978.353.7600 or email firstname.lastname@example.org.