Areas Served: Berkshire, Franklin, Hampden, Middlesex, Norfolk and Worcester counties
WMEF makes direct loans up to $300,000 to qualified borrowers with businesses located in Berkshire, Franklin, Hampden, Middlesex, Norfolk and Worcester counties in Massachusetts.
Loans can be used for working capital, equipment, and capital improvements.
Loans must further the economic development mission of WMEF by fostering local commerce and retaining or adding local jobs.
Minimum Loan Requirements
¢A comprehensive business plan, including a market study and financial information; if you have been in business for more than two years, background information on your company is sufficient.
¢Experienced management in related industry;
¢Minimum personal credit score of 600; no bankruptcy or foreclosure in the past 12 months; no past due debt without a reasonable explanation
¢Cash equity injection of 20% for soft costs and permanent working capital; 50% for leaseholds.
We will consider up to 100% financing for hard assets;
¢Collateral to secure the debt;
¢Personal guarantees or qualified co-signer;
¢Sufficient cash flow to support loan payment; if business is not yet profitable, then the Borrower must have external income that is fully able to support the loan; Interest Rates, Terms and Fees:
¢Loan terms can be up to 7 years;
¢Balloon payments are discouraged;
¢Interest rates can be fixed or variable.
The amount of the rate is based in the credit risk and typically ranges from 8.0% to 12.0%;
¢A $100 non-refundable application is required;
¢A minimum 1% commitment fee is charged on most loans and is based on the committed amount;
¢Closing fees may include appraisal fees, filing fees, legal fees, etc.
Contact InformationWestern Massachusetts Enterprise Fund
Address: 4 Open Square Way, Suite 407
City: Holyoke
State: Massachusetts
Website:
http://www.common-capital.org/financing/
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