Need One Thing to Grow? Microloan Program May Be the Answer
Not every business owner needs a million-dollar expansion project. They need a new oven, or better lighting, or a delivery vehicle, or enough working capital to hire the employee who will finally allow the owner to step away from the register and focus on growing the business.
Too often, these catalytic investments fall into a financing gap—they’re too large to cover with cash on hand, but too small or too unconventional for traditional lending products.
That’s where MassDevelopment’s newly revamped Microloan Program comes in.
The program provides financing from $5,000 to $100,000 for eligible Massachusetts businesses and nonprofit childcare providers. Funds can be used for working capital or the purchase of furniture, fixtures, supplies, materials, and equipment that help businesses operate more efficiently and grow.
For many businesses, growth doesn’t happen because of one giant investment. It happens because of a strategic one-time purchase that unlocks new opportunities.
Do any of these scenarios resonate with you?
A bakery replacing an aging oven to increase production and reduce downtime.
A restaurant upgrading kitchen equipment before the busy summer season.
A retailer installing modern lighting and displays to improve the customer experience.
A manufacturer purchasing specialized equipment that allows them to take on larger contracts.
A childcare provider buying furnishings and classroom materials to expand capacity.
A service business making a key hire and using working capital to support payroll during onboarding.
A creative business investing in technology, tools, or workspace improvements that increase productivity.
These aren’t glamorous projects, but they’re often the investments that make the biggest difference.
Program Highlights:
Eligible businesses can access:
Loans from $5,000 to $100,000
Terms up to six years
Financing for working capital, equipment, furniture, fixtures, supplies, materials, and other business needs
Eligible applicants must:
Be an existing business operating for at least 12 months
Be headquartered in Massachusetts
Be a for-profit business or nonprofit childcare provider
Have a minimum personal credit score of 575
Provide two years of personal and business tax returns
Additional underwriting requirements apply, including a lien on business assets and a personal guaranty. Certain industries, including real estate investment businesses, are not eligible.
For more information, contact the MassDevelopment Microloan Team at microloans@massdevelopment.com.
