Overview of the Massachusetts Office of Business Development

This section describes the makeup and responsibilities of the Massachusetts Office of Business Development.

Overview

The Massachusetts Office of Business Development (MOBD), within the Executive Office of Housing and Economic Development, was established by Section 1(a) of Chapter 23A of the Massachusetts General Laws. MOBD is administered by an executive director who is appointed by the Governor. MOBD’s mission, according to its 2017 annual report, is as follows:

• Facilitate access to resources
• Promote job growth and retention
• Stimulate private investment
• Help businesses thrive in Massachusetts

To achieve its mission, MOBD works with other governmental and quasi-governmental agencies, including municipalities, Massachusetts Growth Capital Corporation,¹ redevelopment organizations, and chambers of commerce.

According to its fiscal year 2018 annual report, “MOBD serves as the umbrella organization for all business development activity on behalf of the state, offering a range of expertise and services” to small businesses and entrepreneurs, including permitting assistance, tax incentives, regulatory support, assistance with site selection and infrastructure support for businesses wishing to locate or expand in the Commonwealth, workforce training, and business consultation. As of the end of our audit period, MOBD had a total of 11 employees working in its six regional offices (Greater Boston, Northeast, Southeast, Central, Merrimack Valley / MetroWest, and West), each of which is led by a regional director.

During our audit period, MOBD administered eight programs and one administrative account (see Appendix). Below is a summary of expenditures from MOBD accounts for fiscal years 2016 and 2017.

Spending Account	2016	2017
Regional Economic Development Organization (REDO) Grant Program	$600,000	$400,000
Microlending Program	300,000	100,000
Massachusetts Biotechnology Research Institute	250,000	250,000
Massachusetts Small Business Development Center	1,186,222	1,186,222
Commonwealth Zoological Corporation	4,900,000	4,000,000
Massachusetts Technology Collaborative	1,700,000	0
Small Business Layoff Aversion Grant Program	250,000	250,000
MOBD	1,352,895	1,100,603
Total	$10,539,117	$7,286,825

 

For our audit, we examined MOBD’s administration of the REDO Grant Program. Sections 3J and 3K of Chapter 23A of the General Laws authorize MOBD to oversee and manage a program designed to provide grants to REDOs, which help facilitate projects that attract businesses to the Commonwealth and retain them here. REDOs are tax-exempt organizations that, according to MOBD’s request for proposals (dated July 30, 2018) for the REDO Grant Program, “demonstrate a primary focus on regional economic development . . . and service 10 or more contiguous cities/towns.” During the audit period, MOBD awarded grants totaling $1,010,000² to nine organizations.

Additionally, in 1993 Section 10A of Chapter 23A of the General Laws required MOBD to establish the Buy Massachusetts Program. The goal of the program is to help Massachusetts businesses find and purchase the goods and services they need from other companies located in the Commonwealth.

1.    According to its 2018 annual report, “Massachusetts Growth Capital Corporation is a small business loan fund providing working capital to small businesses, minority owned and women owned businesses, to create and maintain jobs in the Commonwealth.”

2.    This total comprises $1 million disbursed from the REDO Grant Program account and $10,000 disbursed from the MOBD administrative account.

Date published:	June 20, 2019