Reading, MA — The office of State Representative Richard M. Haggerty (D-Woburn) would like to inform the public of a $10 million loan fund that has been created to provide financial relief to Massachusetts businesses that have been affected by COVID-19. Massachusetts Growth Capital Corporation (MGCC) will receive and process all applications for this fund. Applications can be found on our website at empoweringsmallbusiness.org
General Terms and Conditions:
- Open to Massachusetts-based businesses impacted by the COVID-19 with under 50 full and part-time employees, including nonprofits
- Negative impact must be verifiable
- Loan amounts up to $75,000
- Loan amount not to exceed 3 months of demonstrated cash operating expenses for the 1st quarter of 2020
- No payments due for first 6 months, then 30-months of principal and interest payments (direct debited)
- Annual interest rate 3%
- Personal guarantee required of all owners with 20% or more interest in the company
- Personal credit score under 575 will require an exception
- All asset lien on business
- No prepayment penalty
- Ineligible businesses include companies involved in real estate investment, multi-level marketing, adult entertainment, cannabis or firearms. Companies with past due tax liabilities or tax liens or currently in bankruptcy (Corporate or Personal) are not eligible.
Approval contingent on business being profitable prior to 3/10/20 and no adverse personal credit reports 60 days past due for the last six months.
How to Apply:
- Please complete the 2020 Small Business Recovery Loan Fund application found at empoweringsmallbusiness.org
- Attach the following required information
- 2018 business and personal tax return
- Internally prepared 12/31/19 financial statements
- YTD 2020 internally prepared financials
“Our small businesses and the people they employ are the backbone of our economy. It is critically important to support them during periods such as this,” said Representative Haggerty. “The creation of this fund will do just that, providing much needed financial support and capital to businesses in the Commonwealth who have been disrupted by COVID-19 and the measures taken to contain it. I hope all business owners utilize these types of programs and continue to provide jobs for their employees.”
Completed application and attachments can be sent to MGCC at mgcc@massgcc.com with the subject line “2020 Small Business Recovery Loan Fund”.
