State Directs Funds to Promote Small Business Growth and Entrepreneurship| 04:02PM / Saturday, December 10, 2022 | |
BOSTON — The Baker-Polito Administration announced plans to administer $168,591,178 from the U.S. Department of the Treasury to promote small business growth and entrepreneurship in Massachusetts.
This funding, awarded to the Commonwealth of Massachusetts under the State Small Business Credit Initiative (SSBCI), will support new or expanded programs offered by quasi-public agencies MassDevelopment, Massachusetts Growth Capital Corporation (MGCC), and MassVentures that provide access to capital for small businesses and entrepreneurs. These programs are designed to target small businesses, especially those owned and controlled by economically and socially disadvantaged individuals.
"Since taking office, we have been committed to supporting small businesses in communities across Massachusetts," said Governor Charlie Baker. "This federal funding will allow us to increase access to capital for small businesses and entrepreneurs, helping them create jobs and expand their footprint here in the Commonwealth."
Funding will be distributed among the following programs:
MassDevelopment
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Enhanced Economic Development Loans
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This expanded program for real estate, equipment, and leasehold improvement loans makes direct loans for no more than 50 percent of the total debt package with extremely flexible terms.
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Enhanced Loan Guarantees
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This expanded program partners with banks to provide guarantees of up to 50 percent of the loan amount, on loans for real estate, equipment, and leasehold improvements.
Massachusetts Growth Capital Corporation (MGCC)
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Commercial Lending Program
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This existing program makes direct (companion) loans for no more than 50 percent of the total financing to small business borrowers using its own balance sheet funds.
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Community Loan Fund Guarantee
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This new program will guarantee up to 50 percent of the principal loan amount originated by its community partners (banks and nonprofit community lenders) up to an average of $250,000.
MassVentures
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Deep Tech Diversity Venture Fund
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This fund provides pre-seed, seed, seed-extension, and early-stage venture capital equity investments to deep tech startups (e.g. advanced manufacturing and materials, robotics, AI, synthetic biology, quantum, and clean tech). MassVentures has already led or co-led three investments leveraging almost 7X in private capital with the SSBCI funds.
The State Small Business Credit Initiative (SSBCI) was established by Congress as part of the Jobs Act of 2010 and was reauthorized in the American Rescue Plan Act (ARPA) of 2021, which authorized $10 billion to be allocated nationwide. The Commonwealth was awarded $168,591,178 that will be disbursed in three tranches.
"Small businesses are the heart of our main streets and local economies," said Lt. Governor Karyn Polito. "We are incredibly pleased to be able to expand the suite of resources available from our quasi-public partners that enable small businesses to finance real estate, equipment purchases, and other projects, and are grateful for this support from the federal government."
"This major federal investment will directly benefit our economy by empowering small businesses and entrepreneurs in Massachusetts – especially our smallest and underserved businesses – with the capital they need to grow," said Housing and Economic Development Secretary Mike Kennealy. "MassDevelopment, Massachusetts Growth Capital Corporation, and MassVentures already play a critical role advancing equitable business growth in the Commonwealth, and this funding will allow these agencies to expand their loan offerings to reach more companies."
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