MassDevelopment.com: Press Room: MassDevelopment Announces First-In-New England Program for Exporters

MassDevelopment Announces First-In-New England Program for Exporters
July 7, 2005

Contacts:
Adam Bickelman, 617-330-2086 or abickelman@massdevelopment.com
Janet Hookailo, 617-330-2018 or jhookailo@massdevelopment.com

100% FINANCING AVAILABLE FOR EQUIPMENT PURCHASES, LEASEHOLD IMPROVEMENTS AND TERM WORKING CAPITAL

MassDevelopment today announced a new loan program for exporters and domestic firms that plan to begin exporting in the near future. In the past, the Export Development Fund offered exporters loan guarantees on working capital lines of credit. Exporters can now access attractive loans including 100 percent financing for new equipment with up to seven year terms directly from MassDevelopment. The new program will make up to $20 million in loans, supporting business investment and job creation statewide.

"Export sales have grown rapidly in Massachusetts during the past two years," said Robert L. Culver, MassDevelopment president/CEO. "We've designed this new program to provide the kind of flexible financing in-state companies need to succeed in highly competitive global markets. We're especially pleased to offer 100 percent financing for new equipment purchases, which will free up capital for borrowers to reinvest in their businesses."

In 2004, Massachusetts merchandise exports reached an all-time high. Bay State companies shipped $21.8 billion worth of products to international markets, up 17 percent from 2003. Massachusetts ranks ninth among the 50 states in export volume, and had the second-largest annual percentage increase among the top ten exporting states behind Texas.

"This new program will give Massachusetts businesses the competitive edge they need to succeed in the global marketplace," said Robert Ward, executive director, Massachusetts Office of International Trade and Investment. "MassDevelopment's new loan program is a welcome complement to our efforts and the work of the Massachusetts Export Center."

Advanced Vacuum Systems (AVS), Inc., a manufacturer of high-tech vacuum and pressure furnace solutions for domestic and international firms, was the first MassDevelopment client to take advantage of the Export Development Fund's 70 percent loan guarantee in 1994.

"This new financing program will support Bay State businesses looking to add jobs and expand into global markets, just like earlier incarnations of the program supported our business," said Charlie Creeden, treasurer, AVS, Inc. "We recently completed another expansion initiative, and would likely have used MassDevelopment's 100 percent financing option to help get that project up and running."

MassDevelopment, the state's finance and development authority, partners with businesses and local officials to stimulate growth across the Commonwealth. In fiscal year 2004, the agency arranged financing for or managed 201 projects statewide totaling more than $1.25 billion. These projects supported the creation of more than 5,500 jobs and 2,445 housing starts.