MassDevelopment Approved as Lender for U.S. Department of Agriculture Loan Guarantee Program
July 12, 2010
FOR IMMEDIATE RELEASE
MassDevelopment has been approved as a Massachusetts lender for the USDA Rural Development’s Business and Industry (B&I) Loan Guarantee Program, which supports rural businesses, job creation and retention, and the economic and environmental climate of these communities. Eligible borrowers, including both businesses and nonprofits in designated rural areas of Massachusetts, can apply. Eligible rural areas must have a population that neither exceeds 50,000 nor lies adjacent to a community of more than 50,000 people.
Loans can be used for real estate, equipment, supplies and inventories, working capital, value-added agriculture projects, and refinancing.
“Economic development in Massachusetts means working throughout the Commonwealth’s 351 cities and towns,” said MassDevelopment President and CEO Robert L. Culver. “By emphasizing less populous areas, the USDA’s Rural Development Program ensures that every community can access this financing. We’re happy to have another tool available to us to support economic development across Massachusetts.”
Guarantees are available for up to 80 percent on loans of $5 million or less; 70 percent on $5 million to $10 million; and 60 percent on $10 million to $25 million. Loans of more than $10 million require an administrative exception and submission to the USDA’s national office.
“We’re pleased to welcome MassDevelopment to our growing list of approved B&I lenders,” said USDA Rural Development State Director Jay Healy. “This is a ‘win-win’ arrangement for USDA Rural Development, MassDevelopment, and most importantly, the rural businesses and communities of Massachusetts.”
MassDevelopment, the state’s finance and development authority, works with businesses, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2009, MassDevelopment financed or managed 229 projects statewide representing the investment of nearly $1.2 billion in the Massachusetts economy. These projects are supporting the creation of 1,488 new housing units and 8,232 jobs: 3,362 permanent and 4,870 construction-related.