Cultural institutions support economic growth in Massachusetts by providing employment, purchasing goods and services, and attracting tourists and other visitors. MassDevelopment works with cultural institutions of all sizes to help them acquire, expand, and renovate their facilities. The Agency offers financing for all stages of a project from predevelopment to permanent.
The Brownfields Redevelopment Fund provides financing up to $100,000 for qualified entities to undertake environmental site assessment of brownfields properties located in Economically Distressed Areas (EDAs) of Massachusetts and loans with flexible terms up to $500,000 to clean-up contaminated sites.
Predevelopment loans are low interest rate loans up to $50,000 with deferred repayment terms to finance predevelopment costs associated with real estate projects.
Real Estate Financing
MassDevelopment issues tax-exempt bonds to finance the acquisition, rehabilitation, or construction of cultural facilities and to purchase equipment. Interest on the bonds is exempt from federal taxes – and for certain bondholders from state taxes – resulting in lower borrowing costs. Bonds may be sold in the capital markets or directly to your bank or another financial institution.
Real Estate loans and bank loan participations, up to $5,000,000, can be used for facility acquisition, renovation, construction, expansion, and permanent financing.
Capital Financing 501 is a tax-exempt commercial paper program that provides Massachusetts 501(c)3 institutions with low-cost sources of capital for real estate, equipment, repairs, and maintenance. Funds can be borrowed and repaid efficiently.
Pool loans are loans with low tax-exempt rates that allow Massachusetts 501(c)3 institutions to finance real estate, equipment, and short term needs. Benefits include low up-front costs, flexible term of the loan, and a simple application process.
Equipment loans up to $2,000,000 are available at attractive rates.
TechDollar loans provide 100% financing for technology equipment purchases and installation by nonprofit 501(c)3 organizations. Interest rates are our lowest.
Value leases are tax-exempt lease financings for equipment purchases of $500,000 and up. Renovation and installation costs may be financed as part of the project, up to 20% of the overall financed amount.
The Massachusetts Cultural Facilities Fund (CFF) makes capital grants to finance the acquisition, design, renovation, expansion, or construction of cultural facilities in Massachusetts and feasibility and technical assistance grants to finance studies related to capital projects. All grants from the Fund must be matched with cash contributions from the private or public sector. The Cultural Facilities Fund is jointly administered by MassDevelopment and the Massachusetts Cultural Council.