By Brent Addleman, The Center Square
Published Dec. 8, 2022
Making investments in the future of small businesses is the focus of a new investment in Massachusetts.
Nearly $169 million will be redirected from the U.S. Department of Treasury to promote small business growth and entrepreneurship in the Bay State. The funds are from the state’s allocation of State Small Business Credit Initiative Funding, Gov. Charlie Baker said.
“Since taking office, we have been committed to supporting small businesses in communities across Massachusetts,” Baker said in a release. “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.”
The funding totaling $168,591,178, according to the release, will create and expand capital funding offerings from MassDevelopment, Massachusetts Growth Capital Corp., and MassVentures. The funding was established for the small business credit by Congress as part of the Jobs Act of 2010 and was reauthorized with the American Rescue Plan---part of $10 billion allocated nationwide.
“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,” Housing and Economic Development Secretary Mike Kennealy said in the release. “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.”
Funding for MassDevelopment will be used, according to the release, for the Enhanced Economic Development Loans for real estate, equipment and leasehold improvement loans, and the Enhanced Loan guarantees program will partner with banks to provide up to 50% of loan amounts. The Commercial Lending program will make direct loans for no more than 50% of total funding. The Community Loan Fund will guarantee up to 50% of principal loan amounts up to an average of $250,000.
MassVentures, according to the release, will use funding for the Deep Tech Diversity Venture Fund, which supplies money to capital equity investments in the tech sector.
