Manufacturers in Massachusetts are world export leaders, shipping $24 billion of products annually to more than 200 international markets. MassDevelopment works with manufacturers of all sizes to finance manufacturing facilities and equipment and provide export financing to access global markets. The Agency offers financing options for projects from the predevelopment stage through permanent financing.
Predevelopment Financing
The Brownfields Redevelopment Fund
The Brownfields Redevelopment Fund provides financing up to $100,000 for qualified parties to undertake environmental site assessment of brownfields properties located in Economically Distressed Areas (EDAs) of the state and loans with flexible terms up to $500,000 to clean-up contaminated sites.
Predevelopment Loans
Predevelopment loans are low interest rate loans up to $50,000 with deferred repayment terms to finance predevelopment costs associated with real estate projects.
Manufacturing Facilities and Equipment Financing
Tax-Exempt Bonds
MassDevelopment issues tax-exempt bonds up to $10,000,000 to finance the purchase, rehabilitation, or construction of traditional manufacturing facilities as well as new equipment purchases. Under the federal American Reinvestment and Recovery Act (Stimulus Bill), qualified manufacturing projects that can be financed with tax-exempt bonds have been expanded for 2009 and 2010. In addition to traditional manufacturing, tax-exempt bonds can now be used to finance facilities and equipment for:
- Technology companies;
- Development of intangibles including patent, copyright, formula, process, design, know-how, format, or other similar items; and
- New manufacturing-related facilities located on the same site as the current manufacturing facility and of character and size commensurate with the current facility.
Interest on the bonds is exempt from federal taxes – and for certain bondholders also 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.
Taxable Bonds
MassDevelopment can issue taxable bonds for industrial and commercial real estate. Taxable bonds are often used as a “tail” in a tax-exempt financing if the borrower’s needs exceed its eligibility to issue tax-exempt bonds for a particular project.
Real Estate Loans
Real estate loans and bank loan participations, up to $5,000,000, can be used for facility acquisition, renovation, construction, expansion, and permanent financing.
Mortgage Insurance Guarantees
MassDevelopment can issue a guarantee to your bank; the guarantee allows your bank to offer a higher advance rate on a real estate loan or a tax-exempt bond.
Equipment Loans
Equipment loans up to $1,000,000 are available at attractive rates.
Specialty Programs
Emerging Technology Fund (ETF)
MassDevelopment provides real estate and equipment loans and guarantees to emerging technology companies that are starting-up or expanding their manufacturing facilities in Massachusetts.
Exporter Financing
MassDevelopment offers several programs, including 100% export loans, export guarantees, and credit insurance, to assist companies that export or anticipate exporting their products or services internationally.
