The development of clean renewable energy is essential to our future, both for energy independence and the preservation of the environment. MassDevelopment supports renewable energy initiatives with several financing options.
Predevelopment Financing
The Brownfields Redevelopment Fund
The Brownfields Redevelopment Fund provides financing up to $100,000 for entities 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.
Real Estate, Equipment and Other Financing
Clean Renewable Energy Bonds (CREBs)
MassDevelopment issues CREBs to state and local governmental entities to purchase or construct clean renewable energy generation facilities such as solar, wind, geothermal, biomass, small irrigation power, and hydropower. CREBs are tax credit bonds – the federal government provides a tax credit to the bondholder in lieu of the issuer paying interest to the bondholder, thereby offering the equivalent of interest-free financing.
Qualified Energy Conservation Bonds (QECBs)
Under the American Recovery and Reinvestment Act of 2009, MassDevelopment can issue Qualified Energy Conservation Bonds to both governmental and private entities. QCEBs can be used to finance renewable energy facilities as well as implementation of green community programs, technologies to reduce energy use in buildings, mass commuting facilities, and public education programs. Similar to CREBs, QCEBs are tax credit bonds for which the bondholder receives a federal tax credit in lieu of interest from the borrower.
Emerging Technology Fund
The Massachusetts Emerging Technology Fund (ETF) targets technology companies that are starting-up or expanding manufacturing in Massachusetts by providing financing for manufacturing facilities and equipment. Eligible manufacturers include companies that make clean renewable energy products. The ETF offers:
- Loans or loan participations up to $2,500,000
- Loan guarantees up to $1,000,000
To qualify for ETF financing:
- Borrower must be a technology company starting or expanding manufacturing operations in Massachusetts
- Funds must be used to purchase, expand, or improve real estate, and/or purchase equipment
- The ETF loan or guarantee is limited to a maximum of 25% of the project cost
- At least two private parties must provide financing
- The financial investment must benefit the Massachusetts economy.
- Companies that receive financing from ETF must have h3 management teams, demonstrated technical feasibility, market demand for their products, and a proven fund-raising record.
