MassDevelopment Launches Small Business Innovation Research Bridge Loan Program
February 22, 2018
FOR IMMEDIATE RELEASE
Meggie Quackenbush, MassDevelopment, 617-330-2011 & 857-208-2777 (cell)
MassDevelopment today announced the new Small Business Innovation Research (SBIR) Bridge Loan Program from the Agency’s Emerging Technology Fund (ETF). The SBIR Bridge Loan Program provides bridge financing to Massachusetts recipients of SBIR grants, which are federal grants that provide small businesses with funding for research and development of cutting-edge technologies. SBIR grant recipients typically wait three to nine months for funds after their grant is approved, and MassDevelopment’s new program will provide bridge financing up to $250,000 so recipients can access capital more quickly.
“The SBIR Bridge Loan Program will help the Commonwealth remain at the forefront of researching, developing, and commercializing new technologies,” said Housing and Economic Development Secretary Jay Ash. “Through this program, MassDevelopment will more quickly connect our small businesses to resources they need to explore new ideas and test new ventures.”
“MassDevelopment is excited to announce this new bridge financing program, which will provide Massachusetts SBIR grant recipients with financing much more quickly, thereby increasing the efficiency and effectiveness of federal SBIR grants,” said MassDevelopment CEO and President Lauren Liss. “We look forward to supporting the high-tech innovation and entrepreneurial spirit for which the Commonwealth is known through the SBIR Bridge Loan Program.”
The Emerging Technology Fund is managed by MassDevelopment on behalf of the Commonwealth. The fund helps cutting-edge companies locate or grow in Massachusetts, providing jobs and strengthening the innovation economy. Since the ETF launched in 2004, 50 companies have financed their growth with loans and guarantees totaling more than $73 million as of December 31, 2017. The Fund also makes equity investments in earlier stage companies through its $5 million equity fund managed by MassVentures. In an effort to meet more needs of growth stage companies, the Commonwealth passed legislation in 2010 that allowed MassDevelopment to add a working capital term loan product, which helps growing companies finance staffing and other working capital needs.
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2017, MassDevelopment financed or managed 377 projects generating investment of more than $4.3 billion in the Massachusetts economy. These projects are projected to create about 9,488 jobs and build or rehabilitate 1,863 residential units.