MassDevelopment can provide a guarantee on a portion of a bank real estate loan or tax-exempt bond. Our guarantee covers the difference between a bank’s maximum allowable loan advance rate and up to 90% of the property value, thereby increasing the amount of financing available to your business. Our mortgage insurance guarantee program offers:
- Loan guarantees up to $1,000,000
- Loan advance rates up to 90% of the value of the real estate
Guarantees are also available for charter school loans or tax-exempt bonds and loans to companies that export products to international markets.
Mercury Brewing, producer of Ipswich Ale, is expanding operations in Rowley. In addition to issuing a $1.98 million tax-exempt bond, which was purchased by Danversbank, MassDevelopment also provided a $198,000 mortgage insurance guarantee. This guarantee allowed Mercury Brewing to obtain the necessary 90% bank financing needed to make its business expansion plans possible.
JTEC is a non-profit that helps Cape Cod area residents become economically self-sufficient by providing job training and vocational services. MassDevelopment issued a $2.6 million tax-exempt bond on behalf of JTEC to finance the acquisition of a new building and refinance debt on its existing building. MassDevelopment also provided an $80,000 guarantee to The Community Bank, the purchaser of JTEC’s bond, to increase the financing availability to 83% of the building’s value. With a lower interest rate and higher financing amount, JTEC can use the additional cash to support expansion of its programs.
