For Immediate Release - November 03, 2009

PATRICK-MURRAY ADMINISTRATION IN PARTNERSHIP WITH MASSDEVELOPMENT ANNOUNCES COMMUNITY SERVICE 501(C)(3) LOAN FUND

Social, youth, and family service organizations will receive access to critical financing support

BOSTON - Monday, November 02, 2009 - The Patrick-Murray Administration today announced a newly formed Community Service 501(c)(3) Loan Fund, which will offer flexible financing for capital improvements for community-based nonprofit organizations such as elder-care centers, daycare centers, community centers, and girls' and boys' clubs. Capitalized with $5 million from MassDevelopment, the state's finance and development authority, the Fund will provide loans ranging from $100,000 to $500,000. Interest rates and terms will be adjusted to accommodate organizations that would not have otherwise been able to secure loans at a critical time.

"We place a value on helping the most vulnerable in our communities," said Governor Patrick. "This modest fund will support organizations that make a difference in the lives of so many in Massachusetts."

Community Service Loan Fund applicants must be a registered Massachusetts-based 501(c)3 organization; have an annual operating budget of less than $5 million for each of the last five years; provide social, youth, or family services; primarily work in underserved or disadvantaged communities; and are ineligible for financing under existing loan programs.

"In these tough times, MassDevelopment appreciates the opportunity to assist nonprofit organizations that do such wonderful work around the Commonwealth" said Robert L. Culver, MassDevelopment president and CEO. "We are confident that this new loan fund will prove as successful in improving the lives of residents throughout the state."

MassDevelopment works with businesses, financial institutions, and local officials to stimulate economic growth across the Commonwealth. During FY2008, MassDevelopment financed or managed 265 projects statewide representing an investment of more than $3 billion in the Massachusetts economy. These projects are supporting the creation of 4,001 housing units and more than 10,384 jobs: 5,424 permanent and 4,960 construction-related.

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The Executive Office of Housing and Economic Development is one of eight Secretariats that make up the Governor's Cabinet. Under the leadership of Secretary Gregory Bialecki, the Executive Office of Housing and Economic Development oversees the following undersecretariats: the Departments of Business Development, Housing and Community Development, and Consumer Affairs and Business Regulation.