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2018 Microlending and Community Development Capital Program

This program is intended to spur Massachusetts job creation and small business growth by increasing access to capital.

The Microlending and Community Development Program is available through the Massachusetts Office of Business Development (MOBD), The Executive Office of Housing and Economic Development (EOHED), and Massachusetts Growth Capital Corporation (MGCC).

The Commonwealth will provide matching and technical assistance grants to eligible nonprofit lenders, including certified Community Development Financial Institutions (CDFIs) and Community Development Corporations (CDCs). State funds will also enable these community-based organizations to leverage federal and/or private funds to extend credit to small businesses:

  • $100,000 is available for direct loans and technical assistance
  • $125,000 is available for leveraging federal and/or private funds extend credit to small business.

Program Goals

The program seeks to increase capital to small businesses that cannot secure financing through banks. Successful grantees will leverage state funds, along with significant non-state funding sources, to provide small businesses with a spectrum of potential credit products, including direct loans, participation loans, and loan loss insurance.

Program Eligibility, Application, and Contract Process

Eligible applicants are Community Development Financial Institutions certified by the United States Treasury, and Community Development Corporations certified under Chapter 40H of the Massachusetts General Laws.

The current round opened on Nov. 13, 2017. Applications are due by 4 p.m. on Dec. 13, 2017.

For matching grants, EOHED requires that Commonwealth funds awarded through this program be matched, by at least one-to-one, with non-Commonwealth funds, including federal and private funds. Applications that leverage Commonwealth funds by factors of greater than one-to-one will be more competitive.

Applicants must complete the electronic application and narrative that follows these instructions. Please answer questions succinctly, and resize preformatted text boxes as needed.

Legislative Authorization

FY18 General Appropriations Act

For microlending grants of not more than $100,000 that shall be issued to established community development financial institutions and community advantage lenders making direct microenterprise and small business loans to borrowers on a regional basis and providing technical assistance to applicants and borrowers in order to foster business establishment and success; provided, that the funds shall be used to support the eligible organizations' lending and technical assistance activities.

Act of 2016 Chapter 219


For the Massachusetts Growth Capital Corporation established pursuant to section 2 of chapter 40W of the General Laws for a program to provide matching grants to community development financial institutions certified by the United States Treasury or community development corporations certified under chapter 40H of the General Laws to enable them to leverage federal or private investments for the purpose of making loans to small businesses; provided further, that $100,000 shall be expended to SEED Corporation in Taunton

Review Process

Applications will be reviewed for responsiveness, track record, historical impact, projected grant impact, and consistency with Administration funding priorities.

Applicants that are approved for funding will be notified in writing of the approval, with instructions for demonstrating readiness and any other required submissions. All awards are contingent upon the execution of a contract between the applicant and the Commonwealth. Awards may be subject to conditions as set out in the award notification letter. Grant contracts will only be issued for projects that successfully meet all requirements set out as a condition of the award. Any project that receives an award but does not meet the requirements by the specified date will lose its funding for that year and may be penalized during future funding rounds.

Applicants must submit applications electronically. Please email a completed application, and any supplemental information, including the applicant’s most recent annual report and audited financial statement, to

Applicants that are not selected to receive funding will be notified in writing.


Microlending and Community Development Application

Additional Resources for Microlending and Community Development Application


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