MassDevelopment.com: Press Room: Food Manufacturer Expands With $1 Million MassDevelopment and Bank of Western Massachusetts Financing Package

Food Manufacturer Expands With $1 Million MassDevelopment and Bank of Western Massachusetts Financing Package
Project Will Result in Creation of 10 New Jobs in Springfield
July 18, 2006

Contacts:
Alicia Tildsley, MassDevelopment, 617-603-3120
Adam Bickelman, MassDevelopment, 617-330-2086

MassDevelopment today announced the closing of a $1 million financing package in partnership with the Bank of Western Massachusetts for Hot Mama's Foods of Northampton. The financing package includes a $1,044,000 commercial mortgage loan - $730,800 from the Bank of Western Massachusetts and $313,200 from MassDevelopment as well as a $162,400 MassDevelopment mortgage insurance guarantee to support the bank's investment. Loan proceeds supported Hot Mama's relocation and expansion to Springfield this summer. The company purchased a larger USDA-certified food production facility located at 134 Avocado Street and will add ten new jobs to its existing 50-person workforce.

"Congratulations to Hot Mama's Foods on its upcoming relocation and expansion in Springfield," said Robert L. Culver, MassDevelopment president/CEO. "Small manufacturers continue to be a critical component of the Commonwealth's economy, and I tip my hat to Hot Mama's Foods for choosing to expand in Massachusetts."

Founded in 1984, Hot Mama's Foods manufactures and packages fresh and fresh to frozen gourmet salsa, hummus, pesto, and other spreads. It specializes in competitively priced products that it makes all-natural, vegan, organic and/or Kosher Parve. In 2002, Hot Mama's expanded into the midwestern United States, opening a plant in Chicago, IL, where their primary vendor, Trader Joe's, had already established a client base. The firm's latest expansion in Springfield will allow the company to market new products, including burritos, tacos and other popular international fare. In February 2006, Hot Mama's received a gold certificate of recognition from Sillikan, Inc., the leading international network of accredited food testing and consulting laboratories.

"I am so proud of how Hot Mama's has become a leader in the manufacture of healthy, all-natural food products," said Hot Mama's President, Matthew Morse. "The financing we received from MassDevelopment and Bank of Western Massachusetts will allow us to further realize the enormous potential for growth that I witnessed when I bought the company more than 15 years ago."

MassDevelopment, the state's finance and development authority, works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. In fiscal year 2005, MassDevelopment financed or managed 158 projects statewide representing an investment of nearly $1.9 billion in the Massachusetts economy. These projects are supporting the creation of 2,769 housing units and more than 9,800 jobs: 4,702 permanent and 5,100 construction-related.