Pool Loans are available to eligible nonprofit institutions. Made from the proceeds of a MassDevelopment bond issuance on behalf of the borrowers, Pool Loans have the advantage of offering a low, tax-exempt interest rate without the costly and time-consuming process of completing a stand alone bond issuance.
MassDevelopment teams up with banks that provide letters of credit support for the bond offering. The participating banks will have the final approval of the borrowers, subject to previously established credit criteria.
Funds in Pool Loans are assigned on a first-come-first-serve basis, and will be committed to borrowers when they sign and close a commitment agreement with MassDevelopment.
The expected credit profile for the borrower will include adequate cash flow to cover debt service payments, a history of operating surpluses, acceptable loan-to-value for real-estate backed loans, and other customary terms and conditions.