Celebrating 20 Years

Loans & Guarantees

MassDevelopment specializes in financing complex projects that require experience and innovative thinking. Our low rates and flexible terms help foster real estate and business projects that generate economic benefits for local communities and the state as a whole. Plus they help you grow your operations and stay competitive in your field. 

Brownfields Remediation

MassDevelopment administers the Brownfields Redevelopment Fund, which helps to transform vacant, abandoned, or underutilized industrial or commercial properties. In most cases, redevelopment is complicated by real or perceived environmental contamination and liability. In FY17, the Commonwealth authorized $45 million in capital funding for the Brownfields Redevelopment Fund. To ensure the Fund’s sustainability and reduce the need for recapitalization, MassDevelopment has adjusted the program to increase repayment from municipalities that benefit from economic development as a result of brownfields funding. That reimbursement would come from a share of tax collections on successful, revenue-producing sites, which benefit both the community and the Commonwealth.

Types of Redevelopment Fund Programs:

  • The Brownfields Site Assessment Program provides unsecured, interest-free financing up to $100,000 for environmental assessment of brownfields.
  • The Brownfields Remediation Loan Program offers flexible loans up to $500,000 for environmental cleanup of brownfields.

Prior to redevelopment, MassDevelopment can provide a real estate loan or tax-exempt bond to finance your project. 

Other state brownfields programs that provide financing incentives include:

  • Brownfields Tax Credit Program - The tax credit program is administered by the Massachusetts Department of Revenue and offers eligible businesses and nonprofits a tax credit for the costs incurred to remediate contaminated property owned or leased for business purposes and located in an economically distressed area.  Tax credits may be used against state tax liabilities, or transferred or sold to third parties.



Charter School Loan Guarantee

Through the Massachusetts Charter School Loan Guarantee Fund, MassDevelopment provides guarantees for bank loans or tax-exempt bonds financing the acquisition, construction, or renovation of charter school facilities located in Massachusetts.

For facilities owned by the school:

  • Loan guarantees cover a percentage of the first mortgage loan up to the lesser of 50% or $3 million.
  • Loan advance rate may be up to 100% of the property value.                           

For facilities leased by the school:

  • Loan guarantees cover up to the lesser of $1,000,000 or 90% of the cost of facility improvements.


Commercial Real Estate Loan

Real estate loans can be used to fund facility acquisition, renovation, construction, and permanent financing.

Our real estate loan program offers:

  • Loans or bank loan participations up to $7,500,000
  • Construction loans, usually made in partnership with another lender
  • Permanent financing loans
  • Multi-tenant, mixed use, commercial, industrial
  • Manufacturers, small business, nonprofits
  • Rental housing apartment buildings
  • For owner-occupied real estate, loan advance rates up to 90% of the property value


Lending Brochure

Emerging Technology Fund

For information on the Emerging Technology Fund, please visit –

Equipment Loan

If your company is expanding operations and needs to purchase equipment, MassDevelopment can help.

Our equipment loan program offers:

  • Loans or bank loan participations up to $2,000,000
  • Fixed rate financing
  • Loan terms up to seven years
  • Loan advance rates up to 85% of the cost of new equipment
  • Exporters may receive 100% financing for new equipment


Export Financing

MassDevelopment offers the following programs to help companies that export or anticipate exporting products or services internationally:

  • 100% Export Loan
  • 100% financing for new equipment, leasehold improvements and working capital
  • Loans up to $2,000,000
  • Interest-only payments for the first 12 months
  • Up to 7-year term and amortization

Export Loan Guarantees

  • Loan guarantees on working capital lines of credit and other eligible loans
  • Inventory and accounts receivable accepted as collateral
  • Up to 70% working capital financing available

Other international trade resources available to exporters:

  • Massachusetts Export Center - One-on-one export counseling and technical assistance, export workshops, and other services. 
  • Massachusetts Office of International Trade and Investment - Works to expand the Massachusetts economy by marketing the state’s business internationally. 
  • Massachusetts Export Resource Center - A one-stop resource for information and training to help businesses grow by taking advantage of global opportunities.


Mortgage Insurance Guarantee

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, tax-exempt bonds, loans to companies that export products to international markets, and working capital loans to manufacturers.



Pre-development Loan

Pre-development loans can be used to finance early stage project costs, such as architectural and engineering work or traffic and feasibility studies necessary to advance a project to the construction stage.  Our pre-development loan program offers loans up to $100,000 and deferred interest payments.*

*Borrowers are required to provide a 50% match for MassDevelopment loan funds.


MassDevelopment offers loans from $25,000 to $250,000 to help nonprofit 501(c)(3) organizations located in Massachusetts purchase and install technology equipment. 100% of cost of purchase of new or used telecommunications and information technology equipment, software, and related installation costs


Working Capital Loan Guarantee

Working Capital Loan Guarantee for Manufacturers

Our newest product allows banks to make larger working capital loans to manufacturing companies by providing a guarantee of up to 25% of the amount outstanding on a revolving line of credit. The guarantee terminates with the maturity of the line of credit and will be considered for renewal on the same cycle as the bank, but no less frequently than every three years.

Term working capital loans may also be guaranteed in a fixed amount equal to no more than 25% of the bank’s loan amount. The guarantee amortizes dollar for dollar with the underlying term loan for up to five years. MassDevelopment charges an annual fee equal to 1% of the guarantee amount as long as the guarantee is outstanding.


Working Capital Loan

Manufacturing Planning Loans

MassDevelopment provides Manufacturing Planning Loans up to $50,000 with low interest rates and terms of up to five years. Loans can be used by manufacturing companies to pay for consultant services. Eligible consultant contracts include services to evaluate and improve demand (sales and marketing), fulfillment (operations improvement), and finance and administration (strategic leadership).

Loan Guarantees Brochure