MassDevelopment works with manufacturers of all sizes to finance manufacturing facilities and equipment and provide export financing to access global markets. We offer financing options for projects from the predevelopment stage through permanent financing at preferential interest rates to manufacturers.
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 are low interest rate loans up to $100,000 with deferred repayment terms to finance predevelopment costs associated with real estate projects.
Planning loans are used to pay for consultant services. Eligible consultant contracts include services to evaluate and improve demand (sales & marketing), fulfillment (operations improvement), and finance and administration (strategic leadership). Up to $50,000 with low interest rates and terms of up to five years.
Manufacturing Facilities and Equipment Financing
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. 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.
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 and bank loan participations, up to $5,000,000, can be used for facility acquisition, renovation, construction, expansion, and permanent financing.
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 up to $2,000,000 are available at attractive rates.
Term Working Capital Loans
Term working capital loans with low rates and terms of up to seven years are available up to $500,000 to finance reconfigured operations, upgrades to plant and equipment, product development, increased production, new staff, and other costs associated with growth.
MassDevelopment provides real estate, equipment, and working capital loans and guarantees to emerging technology companies that are starting-up or expanding their manufacturing facilities in Massachusetts.
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.
MassDevelopment’s newest guaranty product allows banks to make larger working capital loans to manufacturing companies than they would normally make under their existing advance rates.
For more information about the Commonwealth’s efforts to promote manufacturing, please visit the website for the Advanced Manufacturing Collaborative.