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 $50,000 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.
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.
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.
TechDollars
TechDollar loans provide 100% financing for technology equipment purchases and installation by nonprofit 501(c)3 organizations that have annual revenues of $5,000,000 or less. Interest rates are our lowest.
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.
