Having sufficient financial resources to
support your business may make the difference
between the success and failure of your
business.
The Western Regional
Office can
help you negotiate the financial challenges
faced by start-up and expanding businesses. The
SBDC does not provide financing. We work with banks and other lending organizations
(both conventional and non-conventional sources) to assist in putting together financial projections, but the actual financing comes from outside sources.
The SBDC can also assist with assembling
financial statements, preparing loan
applications and securing the best financing
options for your business.
Financial Resources
Listing This financial resources listing has been compiled by the Western Massachusetts Regional
SBDC. It is intended for general information
only and is not comprehensive.
NETAAC helps Massachusetts manufacturers who are hurt by import competition by providing them with consulting services at reduced costs. This program is administered by the U.S. Department of Commerce. Under this program the federal government will pay up to seventy-five percent of the cost of projects, including (but not limited to): ISO 9000 certification and training; export assistance; market studies; sales organization development or improvement; creative services for promotional literature; industrial engineering; plant layout and work-flow improvements; energy surveys; and development of cost systems.
U.S.
Department of Agriculture (USDA) Rural
Development
451 West Street, Suite 2
Amherst, MA 01002
Tel. (413) 253-4300 Fax (413) 253-7068 David H. Tuttle, State
Director
Contact: Community and Business Programs
Division
Tel. (413) 253-4300 fax (413)
253-4347
USDA
Farm Service Agency (FSA)
445 West Street
Amherst, MA 01002
Sandra Adams, MA State Director
Contact: Farm Loan Division
Tel. (413) 253-4500 fax (413)
253-4540
The U.S. Department of Agriculture provides business financial assistance through direct lending and loan guarantee programs. Business applicants must be located in rural areas. Agricultural loan inquiries should be made to FSA; all other types of business ventures should contact Rural Development. Program delivery is through Service Centers at multiple locations. Check for the Center nearest you for information.
The SBA administers various programs that provide financial and management assistance to small businesses. The agency's most active programs include the following:
7(a) Loan Guarantee Program.
The SBA can guarantee up to 85% percent of loans of $150,000 and less, and up to
75% percent of loans up to $2 million. In most cases, the maximum guaranty is $1,500,000. Loans can be used for the purchase, expansion or renovation of land or buildings, the purchase of equipment or inventory, working capital needs and, in certain circumstances, refinancing of existing debt.
SBA Express. The SBA
Express loan program is an expedited loan
program where the SBA lenders uses mostly
its own forms, documents and procedures and
in exchange receives a lower SBA guaranty -
50%. Approvals under this program are
provided within 36 hours of submission to
SBA. Loan sizes are up to $350,000.
504 Certified Development Company Program.
Through this program the SBA provides financing to businesses through "certified development companies" (corporations established to contribute to the economic development of their community or region). Projects financed under this program generally include a loan from a private lender covering up to 50% of the project costs and a second loan from a certified development company (guaranteed by the SBA). This program enables growing businesses to secure long-term, fixed-rate financing for major fixed assets such as purchase and improvement of land, the construction or renovation of facilities, or the purchase of new or used machinery and equipment.
BCDC is one of the state's largest providers of Section 504 fixed asset financing. A non-profit corporation, BCDC works with banks and small to medium sized firms to provide 90% financing for the acquisition and/or expansion of real estate and equipment. Historically, projects have ranged in size between $400,000 and $5,000,000.
Commonwealth Corporation (formerly
the Corporation for Business, Work and Learning)
The Schrafft Center
529 Main Street, Suite 110
Boston, MA 02129
Tel. (617) 727-8158 or (800) 439-0183
Fax (617) 242-7660
Contact: Jonathan P.
Raymond, President
The Commonwealth Corporation provides economic and work force development services to the Commonwealth of Massachusetts. The Corporation offers management consulting and creative financing services to companies ready to turn around their financial situations. Their Entrepreneurial Group supports dislocated workers in the development, start-up and management of business ventures as a viable alternative to traditional employment situations. The Corporation's loan fund is specifically designed to provide credit enhancement and gap financing to assist banks and other lenders by offering loan guarantees or direct loans to Massachusetts value-added companies. Services to companies include financing assistance and customized management counseling in the areas of financial restructuring, energy efficiency, environmentally sound operations, marketing strategy and work force development and training.
Economic Stabilization Trust (The Trust) Contact: Ed Hitchcock, Lending Officer,
Western Massachusetts
Tel. (617) 727-8158 ext. 2305
The Trust provides financial consulting, working capital, term loans, lines of credit, contract lines of credit and guarantees to small and medium-sized manufacturing firms. Originally, it was created to help mature industries adjust to contemporary manufacturing trends; its mission has expanded to providing gap financing to high-value added firms impacted by economic change including turnarounds, implementing employee ownership, defense diversification, and rapid growth. The loan fund has a capital base of approximately $13 million, which is a combination of direct appropriations from the Commonwealth and grants from the Economic Development Administration of the U.S. Department of Commerce.
CEDAC is a quasi-public corporation established to promote the development of community-based, non-profit development organizations in Massachusetts to benefit low and moderate-income neighborhoods and communities. CEDAC provides professional expertise and equity capital in the form of traditional loans for the predevelopment costs of real estate projects.
The Business Development Company provides loans to businesses in Massachusetts
that are unable to obtain financing from conventional lenders. It also provides
loans to companies that need supplemental financing to make conventional debt
work. These loans may be used for working capital purposes, the acquisition of
real estate, machinery or equipment, mergers and acquisitions, or debt
restructuring. The loans range in size from $50,000 to $1 million and can be
structured with longer loan terms and more aggressive collateral advance rates
than conventional bank loans. The Business Development Company is also a SBA "premiere certified
lender" for 7(a) guarantees, in the event that the borrower's collateral is
insufficient to support the desired amount of financing.
Community Investment specializes in direct financing
and technical assistance to minority-owned and woman-owned businesses,
non-profit groups, and businesses that employ a predominately minority work
force, or demonstrate that its operations have a direct positive impact on
economically disadvantaged areas. Proceeds from loans granted under this
program can be used for working capital, the acquisition of machinery,
equipment or real estate or any other viable business or community
development purpose. Loans range in size from $50,000 to $2,000,000.
MassCertified Development Corporation (MassCertified),
an affiliate of the Business Development Company, offers the popular SBA 504 program to
businesses statewide. MassCertified is the only Premier Certified Lender (PCL)
in the Commonwealth offering express approval to qualified businesses as
well as streamlined service.
Proceeds of SBA 504 loans can be used for the purchase of
land and buildings and new construction; for renovation and leasehold
improvements; as well as the acquisition of machinery and equipment. The SBA 504
program offers fixed rate financing for up to 20 years on 40% of the project. Up
to 90% of the project can be financed. Viable projects can range from $500,000
to $5,000,000. An eligible business must be for profit, have a net worth of
$6,000,000 or less; and have an average net profit over the last two fiscal
years of less than $2 million.
MCRC was formed by the Massachusetts-based life insurance industry in 1977 in response to a study of the
region's economy produced for the Massachusetts Task Force for Economic Development. MCRC is a private company that promotes economic development by providing growth capital to established local businesses throughout the Commonwealth.
When formed in 1977, the concept of a private company acting as a geographically focused investment fund was new and unproven. Over the past twenty years, our unique approach to community-based investing has produced outstanding results. Over this period, MCRC has invested approximately $400 million in 219 companies located in 98 communities resulting in the creation of over 15,000 jobs.
CDFC is a quasi-public investment corporation that provides financing for small businesses, real estate projects, and community development programs in low and moderate income communities of Massachusetts. As an economic development organization, CDFC requires that projects meet
CDFC's investment standards, and assist in the creation of jobs, business opportunities, affordable housing, or development of the local business district. CDFC offers the following programs:
MDHCD administers programs that provide economic assistance to businesses engaged in economic development projects.
Massachusetts Community Capital Fund (MCCF)
MCCF provides debt financing to for-profit and non-profit businesses that provide significant employment opportunities in eligible Massachusetts municipalities. Municipalities apply for MCCF funds on behalf of the local business or non-profit. If approved, DHCD awards a grant to the community that, in turn, lends funds to the borrower. MCCF loan rates and terms are flexible and based on the needs of each borrower. The three major criteria for funding are: 1) financial need, 2) job creation/retention for low and moderate-income persons, and 3) credit-worthiness of the borrower. MCCF funds up to one-third of a total capital project. Loan size ranges from $100,000-$490,000. Financing can be provided for purchase of capital equipment, working capital, acquisition of real estate, new construction or rehabilitation, and in some cases refinancing.
Section 108 Loan Program This program is designed to promote infrastructure development and business expansion. Under this program a municipality must apply for and administer the loan to a business borrower. The State guarantees the loan while actual funding is provided through the sale of bonds by the federal Department of Housing and Urban Development (HUD). The State will guarantee up to 40% of the total project costs with maximum guarantees ranging from $500,000 to $5,000,000.
MTDC was established by the Commonwealth of Massachusetts to provide venture capital for the start-up and expansion of early stage technology companies. MTDC is a publicly funded but independently operated venture capital organization. MTDC makes equity investments, usually in the form of a direct purchase of common or preferred stock. All MTDC investments are made as part of a joint venture with conventional private sector investors.
MassDevelopment 160 Federal Street
Boston, MA 02110
Tel. (617) 451-2477 or (800) 445-8030 Fax (617)
451-3429
Contact: Robert Culver, President/CEO
Western Mass Regional
Office
1441 Main Street
Springfield, MA 01103
Tel. (413) 731-8848 Fax (413)
755-1349
MassDevelopment functions as the
Commonwealth's financing tool for building businesses and communities. It is able to fortify
Massachusetts' diverse industries through the use of predevelopment assistance funds, tax-exempt and taxable bonds, tax-exempt lease/purchase financing programs, emerging technology programs, export finance funds and direct loan/guaranty programs.
Provides counseling
services for any size business or support
services to individuals who are considering
starting a business. Services include assistance
in working on business plans, enhancing
marketing efforts and identifying possible
funding sources, as well as providing financial
counseling.
The CDIP is a loan program created to increase small business growth and industrial/manufacturing programs. It is a government-run program with low interest rates. The loan fund was put together to assist growth of small businesses. The loan is to help create better job opportunities for low to moderate income workers.
The HIDP is available to assist expanding local manufacturers and to help new-to-Holyoke companies meet their capital requirements. Blending the below-market rates of the HIDP with private financing creates the opportunity for qualified businesses to locate or expand in Holyoke. Eligible projects include: land acquisition and development, expansion and construction projects, and manufacturing equipment purchase.
Technology Technical Assistance Program
(TTAP)
Affiliated Chambers of Commerce of Greater Springfield, Inc.
1441 Main Street
Springfield, MA 01103-1449
Tel. (413) 787-1555 Fax (413)
731-85
Contact: Russell Denver, President
Debra Boronski, Senior Vice President
The Technology Technical Assistance Program (TTAP) is designed to assist existing small businesses located in the City of Springfield with their technological upgrades. The Chamber will provide grants of up to $5,000 to assist businesses by contracting with qualified vendors to help recipients with their technological upgrades, to assist in expanding their product line or employee base, or to provide better customer service to clientele. The program is a collaboration between the Affiliated Chambers of Commerce Greater Springfield and the City of
Springfield's Office of Community Development.
WMEF was created to provide grants, loans and advisory support to its member
CDCs' revolving loan funds in order to increase their capacity to invest technical assistance and capital in lower-income and minority businesses.
Accion
USA
56 Roland Street, Suite 300
Boston, MA 02121
Tel. (617) 625-7080 Fax: (617)
625-7020 (fax)
Email:
info@accionusa.org
A non-profit organization, helps entrepreneurs of limited means through:
business loans $500 to $25,000; hands-on assistance with the loan application
process; and networking and business education opportunities.
Long River Ventures 100 Venture Way, Suite 4
Hadley, MA 01035
Tel. (413) 587-2159 Fax (413)
587-2156
Contact: Tripp Peake, Manager and General Partner
Long River Ventures is an early stage venture
capital firm that typically invests in a mix of
seed, start-up, and more advanced early stage
companies. They primarily invest in information
technology and healthcare, as well as other
products and services enhanced by technology and
innovation including business services,
environmental technologies and consumer product
and services.
Longmeadow Capital
Partners
provides risk capital and transactional support to facilitate the following types of transactions for privately held middle market companies: growth financing; sale, divestiture or spin-off; management buyouts; generational transitions; and recapitalizations.
River Valley Investors exists as a group formed for the purpose of screening
and reviewing businesses looking for equity investment. River Valley Investors
was formed to serve as a meeting ground for individual investors and as a place
for entrepreneurs to present investment opportunities to a select group of
investors.
Village Ventures, Inc. 430 Main Street, Suite 1
Williamstown, MA 01267
Tel. (413) 458-1100 Fax (413)
458-0336
email:
info@villageventures.com
Contact: Matt Harris, Managing General Partner
Bo Peabody, Managing General Partner
Village Ventures is a privately held operating company that manages a network of early-stage locally focused venture capital funds and invests directly in the promising companies emerging from that network. It also invests capital alongside the funds and has proprietary access to second and third stage opportunities emerging from these funds.
75 North Street, Suite
360
Pittsfield, MA 01201
Tel. (413) 499-0037 Fax (413)
499-0059
Contact: Pam Malumphy, Berkshire Regional Director
MOBD's mission is to assist in the creation and preservation of jobs in Massachusetts. They help businesses currently located in Massachusetts, as well as those outside the state that are interested in expanding, relocating, or simply exploring a range of business opportunities here. MOBD serves as a single point of entry for businesses wishing information on state resources.
c/o Franklin County Chamber of Commerce
395 Main Street,
PO Box 790
Greenfield, MA 01302
Tel. (413) 773-5463
SCORE, affiliated with and sponsored by the U.S. Small Business Administration, is an organization of retired business and professional executives well versed in all phases of manufacturing, finance, retail, etc. who are available for consultation at no charge.
SOMWBA is the first Massachusetts agency specifically charged with assisting minority-owned business enterprises. SOMWBA offers access to substantial purchasing and contracting opportunities for business owners who sell a product or a service that is purchased by government agencies, municipalities and large corporations. SOMWBA develops strategies for enacting new legislation and policy proposals that facilitate the involvement of minorities and women in the economy. SOMWBA serves as a resource for bid and contract information, technical assistance and business counseling.
Brightwood Development Corporation 2345 Main Street
Springfield, MA 01107
Tel. (413) 734-2144 Fax (413) 746-3934
Contact: Barbara Delancey, Director
Brightwood Development Corporation is a community-based corporation representing the North End of Springfield. Its primary mission is to promote neighborhood revitalization and development by providing employment opportunities, affordable housing for low and moderate income families, and economic development and small business opportunities through technical assistance, micro. loans, and business incubators.
Franklin County CDC works with local government and area businesses to sponsor community development, business assistance, and housing programs that expand opportunities for low and moderate income residents throughout the region. The CDC also administers a variety of business loan programs.
The Hilltown CDC seeks to improve the economic
self-sufficiency of the hilltowns by increasing
local employment opportunities and providing
support services for hilltown residents.
Business support programs include individualized
business consulting, entrepreneurial training,
business plan development and loan packaging.
Towns served are Ashfield, Chester, Chesterfield, Cummington, Goshen, Huntington, Middlefield, Plainfield, Westhampton, Williamsburg and Worthington.
Lee Community Development Corporation Lee Corporate Center
480 Pleasant Street, Route 102
Lee, MA 01238
Tel. (413) 243-5528 Fax (413)
243-5529
email: lcdc@bcn.net
Contact: Richard H. Vinette, Executive Director
The
Lee CDC's mission is to create jobs and economic opportunity in Lee. It has diversified and preserved employment opportunities, assisted small and medium sized business, and forged new alliances with larger economic
"anchor industries" in Lee.
Nueva Esperanza, Inc. 401 Main Street
Holyoke, MA 01040
Tel. (413) 533-9442 Fax (413)
533-2661
email: nuevesp@javanet.com
Contact: Carlos A. Vega, Executive Director
Nueva Esperanza sponsors community development, business assistance, and housing programs that expand opportunities for low and moderate-income residents in Holyoke.
The City of Pittsfield, through its Department of Community Development and the Pittsfield Economic
Revitalization Corporation (PERC), offers a number of programs as assistance to developers and entrepreneurs locating or expanding businesses in Pittsfield. They include:
The CDC works to provide a wide range of programs and services to enhance the
economic climate of the Quaboag Valley region. Its objectives include loans to
area businesses that are microentrepreneurs or intend to create jobs. The CDC
also provides technical assistance and training to small businesses.
Solutions Community Development Corporation 254 Maple Street
Holyoke, MA 01040
Tel. (413) 315-6017 Fax (413)
315-6258
Contact: Gregory Schwartz, Director Harry Montalvo, Business Manager
Solutions CDC is a local non-profit organization governed by area residents and business owners devoted to serving the needs of small businesses and community residents. Its mission is to promote community economic development opportunities for local residents, small businesses and individuals interested in starting a small business in Holyoke. Programs offered include:
Valley Community Development Corporation 30 Market Street
Northampton, MA 01060
Tel. (413) 586-5855 Fax (413)
586-7521
Contact: Joanne Campbell, Executive Director
Gene Talsky, Director, Small Business
Development
Stacy Kontrabecki, Coordinator, Small Business
Development
The Economic Development Committee of the
Valley CDC strives to improve the quality of
life for all residents in their service area
(Amherst, Easthampton, Hadley, and Northampton)
by actively working with local, state and
federal agencies and other non-profit
organizations to support current economic
development initiatives and programs.
The Valley CDC can help with:
business and benefit plan development
management information systems
product/service development and focus
accessing financing to start or grow a business
strategic planning for website development
marketing
group training and individual tutoring
referrals to service providers and other business development resources
Westfield CDC sponsors community development, business assistance, and housing programs that expand opportunities for low and moderate income residents in Westfield.
