FITCHBURG — The North Central Massachusetts Development Corp. has received a $500,000 loan from the U.S. Small Business Administration to bolster its micro-lending program and expand its lending efforts to support small businesses in the region, according to a press release.
“Access to capital is a major issue for many small businesses, who are struggling to survive amid the unprecedented economic disruption caused by the COVID-19 public health crisis,” Roy M. Nascimento, president and CEO of the North Central Massachusetts Chamber of Commerce and the North Central Massachusetts Development Corp., said. “This infusion of much needed capital will help shore up our lending capacity and allow us to continue to support small businesses who need financing but are unable to secure it through traditional means.”
The loan must be repaid over a 10-year period. Grant dollars the NCMDC received from the Commonwealth of Massachusetts were also used to help support the SBA’s requirement for matching funds for a Loan Loss Reserve.
With these funds, the NCMDC can continue to provide SBA loans of up to $50,000 to small businesses in the region.
The U.S. Small Business Administration provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. This is the third such SBA loan that the NCMDC has received since being approved as an SBA Microloan Intermediary in 2015. These loans have allowed the NCMDC to grant nearly $1,000,000 in SBA microloans to start ups and expanding businesses.
For more information about applying for a microloan or the other loan programs available through the NCMDC, contact Sandie Cataldo, economic development manager, at 978-353-7600, ext. 232, or visit choosenorthcentral.com/lending/.