2019 Microlending Program

​​​​​​​The Microlending Program seeks to spur job creation across the Commonwealth, support entrepreneurship and small business growth, and build community wealth, by lowering the barriers to capital access faced by small businesses.   

The Microlending Program is a $200,000 procurement of the Executive Office of Housing and Economic Development (EOHED) and Massachusetts Office of Business Development (MOBD).

Through the Microlending Program, MOBD will provide grants to eligible nonprofit lenders, including certified Community Development Financial Institutions (CDFIs) and Community Development Corporations (CDCs). State funds will enable these community-based organizations to assist in extending credit to small businesses.

In FY2019, EOHED will award grants of up to $100,000, to eligible nonprofit community-based lenders.  Applications will be accepted via email, and funding is subject to appropriation.

 

Program Goals

The Microlending Program seeks to increase the flow of capital into Massachusetts’s small businesses and create growth.

By providing a new source of matching funds for established regional nonprofit lenders, the program seeks to build the capacity of nonprofit community-based lenders to finance regional business growth.

Successful grantees will leverage state funds, and other matching funds, to provide small businesses with a spectrum of potential credit products, including direct loans, participation loans, and loan loss insurance.

Successful grantees will provide capital to unbankable small businesses that unlock job growth and put small businesses on a path toward bankability. Successful grantees will fuel small business growth and revitalize their communities.

 

Program Eligibility, Application Process, 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.

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.

Applicants must submit applications electronically by Sept. 21, 2018 at 4 p.m. Please email a completed application, and any supplemental information, including the applicant’s most recent annual report and audited financial statement, to michael.spicer@mass.gov.

 

Proposal Evaluation Process and Award Procedures

 

  1. Relevant Experience of proposer and/or proposed project staff:

Highly Advantageous: The proposer has at least five (5) years of experience as a community development financial entity; 15-20 points awarded.

Advantageous: The proposer has at least three (3) years of experience as a community development financial entity; 10-14 points awarded.

Not Advantageous: The proposer has less than three (3) years of experience as a community development financial entity;  0-10 points awarded.

 

  1. Relevant Experience providing technical assistance to applicants and borrowers in order to foster business establishment and success:

Highly Advantageous:  The proposer has at least five (5) years of experience providing technical assistance to applicants and borrowers; 7-10 points awarded.

Advantageous:  The proposer has at least three (3) years of experience providing technical assistance to applicants and borrowers; 3-6 points awarded.

Not Advantageous:  The proposer has less than three (3) years of experience providing technical assistance to applicants and borrowers; 0-3 points awarded.

 

  1. Relevant Experience in procuring matching funds from federal government and private capital.

Highly Advantageous:  The proposer has at least five (5) years of experience receiving matching federal funds and private capital; 15-25 points awarded.

Advantageous:  The proposer has at least three (3) years of experience receiving matching federal funds and private capital; 10-14 points awarded.

Not Advantageous:  The proposer has less than three (3) years of experience receiving matching federal funds and private capital; 0-10 points awarded

 

**Other criteria include; region served, clear objectives for plan, overall quality.

 

 The contract will be awarded within thirty (30) days after the proposal due date.  The decision may be extended up for up to 30 additional days by mutual agreement between the Commonwealth and apparent lowest responsive and responsible bidder.

Applications will be reviewed for responsiveness, track record and historical impact, projected grant impact, and consistency with Administration funding priorities. As needed, the Executive Office of Housing and Economic Development will consult a team of reviewers, to review pending applications and develop recommendations for funding. Final decisions will be rendered by the Secretary of Housing and Economic Development. Funding decisions are at the discretion of the Secretary of Housing and Economic Development, are subject to appropriation, and are not subject to challenge or appeal.

Applicants that are approved for funding will be notified in writing of the approval, with instructions for demonstrating readiness and any other required submissions, as determined by the Secretary. All new grantees will be required to complete a W9, a listing of authorized signatories, and a tax compliance certification.  All awards are contingent upon the execution of a binding funding agreement between the Executive Office of Housing and Economic Development and the applicant. 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 commitment for that year and may be penalized during future funding rounds.

Applicants that are not selected to receive funding will be notified in writing. If the reason for denial is a lack of available funds, that application may be reconsidered at a later date that year if additional program funds become available.

 

CONTACT INFORMATION

Microlending Program

Michael Spicer, Program Director

Executive Office of Housing and Economic Development

136 Blackstone Street, 5th Floor

Boston, MA 02109

E: Michael.spicer@mass.gov

 

Microlending and Community Development Application

Additional Resources for Microlending and Community Development Application

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