Areas Served: Middlesex & Worchester Counties
For over 20 years The North Central Massachusetts Development Corporation (NCMDC) has been providing financing to local businesses throughout the region.
Representing the 26 communities of the region as well as the five chambers of commerce, the NCMDC offers local business owners and entrepreneurs access to a variety of non-traditional business loan programs.
What Can Be Financed With a Development Corporation Loan? – Real Estate New Construction – Facility Upgrades and/or Expansions – Leasehold Improvements – Real Estate Refinancing – Acquisition of New and/or Used Equipment Revolving Loan Program The North Central Massachusetts Development Corporation (NCMDC) administers a revolving loan pool funded by grants through the federal (EDA) and state (CDBG) governments.
The revolving loan program is designed to be an alternative loan source for both start-up and existing businesses.
The premise of this program is to approve loans that were not qualified to gain approval through traditional bank sources.
NCMDC is often the sole lender in the loan.
But, in many cases NCMDC has enhanced the loan by providing tier financing or a participation with another financing institution in the credit.
To be eligible for the revolving loan program, 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 Community Reinvestment Fund In 2002, NCMDC signed a contract with Community Reinvestment Fund (CRF) to offer a lending program that would complement its other programs.
Structured in a similar manner to the SBA 504 Loan Program, this enabled NCMDC to take part in larger credits in participation with local financing institutions.
It also was much less restrictive than the SBA product in that non-owner-occupied real estate and debt restructuring are allowable.
How it Works: A Community Reinvestment Loan is a three-way partnership, involving a Lender of your choice, the Development Corporation and you the Borrower.
The typical structure provides for a maximum of 40% 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, Minnesota.
U.
S.
Department of Agriculture NCMDC has also established a relationship with the lending arm of the U.S. Department of Agriculture (USDA).
Loans through USDA directly or in concert with one of NCMDC’s loan products also enable the Development Corporation to become involved in larger or more difficult credits.
Loan Guaranty Program Another of NCMDC’s loan enhancement products is the Loan Guaranty Program.
Under this program, the financial institution makes the loan.
NCMDC provides a guaranty of up to 75% of the loan up to $50,000. The guaranty is for the first two years of the loan.
A fee is paid to NCMDC of 2% of the guaranteed amount for the first year and 1% for the second.
Contact InformationNorth Central Massachusetts Development Corporation
Address: 860 South Street
City: Fitchburg
State: Massachusetts
Website:
http://www.ncmedc.com/financing/untitled_page/default.cfm
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