Mortgage Insurance Guarantees
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 $2,000,000
- 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.
Homisco, Inc., located in Melrose, develops, installs, and services telecommunications software in the U.S. and throughout the world. MassDevelopment issued a 90% Export Loan Guarantee for Homisco, Inc. and its new lender, Pentucket Bank. The guarantee will allow Pentucket Bank to provide Homisco a $400,000 line of credit secured by foreign accounts receivable. The guaranteed line of credit will provide the necessary working capital to finance sales of customer service call management systems to European customers.
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.