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Nonprofits

MassDevelopment staff works with nonprofit organizations, both large and small, to provide financing solutions for real estate and equipment projects. With a portfolio of financing options, competitive rates, and an experienced team, MassDevelopment can craft a financing solution tailored to any nonprofits need, for any stage of a project – from predevelopment to permanent financing. Our clients include private colleges and universities, independent schools, charter schools, cultural institutions, human service providers, long-term care providers, and nursing homes.

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 $100,000 with deferred interest repayment terms to finance certain predevelopment costs associated with real estate projects.

Real Estate Financing

Tax-Exempt Bonds

MassDevelopment issues tax-exempt bonds to finance the purchase, rehabilitation, or construction of nonprofit 501(c)3 facilities as well as new equipment purchases and refinancing of existing conventional debt and tax-exempt debt. 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. 501(c)(3) nonprofit organizations face no size limits on issuance amounts. Bond Fee Schedule for Nonprofit Institutions

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.

Capital Financing 501

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

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.

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 Financing

Equipment Loans

Equipment loans up to $2,000,000 are available at attractive rates.

TechDollars

TechDollar loans provide 100% financing for technology equipment purchases and installation by nonprofit 501(c)3 organizations. Interest rates are our lowest.

Value Lease

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.

Grants

Massachusetts Cultural Facilities Fund

The Massachusetts Cultural Facilities Fund (CFF) provides 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. The Cultural Facilities Fund is jointly administered by MassDevelopment and the Massachusetts Cultural Council.

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