The Chamber through it's Development Corporation is pleased to offer local business owners and entrepreneurs access to a variety of non-traditional business loan programs, as a demonstration of its commitment to meeting the financing needs of local businesses, the Chamber employs a full-time loan specialist, Donna Comeau. For more information about your financing options, please contact Donna by email or phone at (978) 353-7607 x248.
The Development Corporation program is designed to be an alternative loan source for both start-up and existing businesses. Through the revolving loan program, the Development Corporation makes loans to businesses who may not qualify through traditional sources. To be eligible, a company must meet the following criteria:
For-profit corporation, partnership or proprietorship
- Must be located in North Central Massachusetts
- Tangible net worth not in excess of $6 million
- Less than $2 million average net profit after taxes during previous two years
Loan fund funds may be used to expand, modernize or restructure businesses; for the aquisition of land and buildings; for equipment and furnishings; for certain working capital expenses; for leasehold improvements; and technical assistance. These funds may NOT be used for certain types of service companies, not-for-profit corporations, passive investment companies, real estate investment companies and debt consolidation or refinancing. The Development Corporation requires that the company being financed state that it will create at least one new job for every $20,000 obtained through this loan.
Terms- will be provided according to the following terms:
- Fixed or variable interest, at market rates, determined at the time of closing;
- Maturities up to 5 years;
- Secured by inventories, receivables and subordinated positions on corporate fixed assets and personal assets of owners.
Our Community Reinvestment Loans are also able to offer long term, fixed rate financing to local businesses. This program provides financing for the acquisition of fixed assets but with fewer limitations and restrictions than the SBA 504 Loan Program, usually at a slightly higher rate.
A Community Reinvestment Loan is a three-way partnership, involving a Lender of your choice, the Development Corporation and you the Borrower. The usual structure provides a maximum of 40 percent financing by the Development Corporation. The Lender finances 50% while the Borrower provides 10%. The Lender portion is financed at conventional rates and terms but takes a first position on the assets acquired. Once the loan request is approved, the Development Corporation issues a commitment letter that will outline the terms under which the loan will be made.When these terms have been accepted, the Development Corporation will work with your Lender to close the loan. The loan will be serviced by the Community Reinvestment Corporation of Minneapolis, MN.
- For profit corporations, partnerships or sole proprietorships and some real estate trusts
- Companies whose tangible net worth does not exceed $6million
- Companies whose average net profit after taxes during the previous two years is less than $2million
As with all economic development based loan programs the creation and retention of jobs along with positive community impact is an important factor. Borrowers should show the number of jobs they intend to create and/or retain over a two-year period.
Bruce Larsen, the Chamber's senior loan specialist, is also available to help you locate traditional business loan sources to finance your business venture or expansion project. Please contact Bruce by email or phone at (978) 353-7607 x232. You can also search our database of members as noted below:
Most times, it is advisable for a local business owner who may be considering applying for loan financing to have their business plan or entrepreneurial concept reviewed by an expert. Fortunately, the Chamber has a special partnership to provide FREE business counseling on Mondays and Tuesdays, in the Chamber's offices, in Fitchburg, through the Small Business Development Center and/or the Service Corps. of Retired Executives. For more information about these services, please click here to learn how to set up an appointment.