Economic Development
The North Central Massachusetts Development Corporation is certified by the U.S. Small Business Administration (SBA), and the U.S. Department of the Treasury under the Community Development Financial Institutions (CDFI) Program. The NCMDC works in partnership with local banks, credit unions, chambers of commerce and area nonprofits to support emerging microenterprises, small businesses, and community projects with loans and business assistance.
The North Central Massachusetts Development Corporation (NCMDC) is a non-profit corporation with the mission of creating jobs and improving the economy of North Central Massachusetts. NCMDC is certified by the U.S. Small Business Administration (SBA), and the U.S. Department of the Treasury under the Community Development Financial Institutions (CDFI) Program. The NCMDC works in partnership with local banks, credit unions, chambers of commerce and area nonprofits to support emerging microenterprises, small businesses, and community projects with loans and business assistance.
NCMDC operates a portfolio of three different loan programs to assist your business needs. Our financing programs include:
SBA Microloan Program:
Provides loans up to $50,000. This NCMDC capitalized this revolving fund through a loan provided by the U.S. Small Business Administration and a grant from the Commonwealth of Massachusetts.
EDA Loan Fund Program:
Provides loans up to $75,000. The NCMDC established this revolving loan fund with a grant from the U.S. Economic Development Administration and matching private funds to assist small businesses and entrepreneurs with the gap financing needed to start or expand their business.
RRF Loan Fund:
Provides loans up to $75,000, with the possibility of loan amount exceptions for larger loans with Board approval. The NCMDC established this loan fund using private funds and grants. Funding under this program is intended to promote economic development by leveraging private and other funding. Loans are typically made in conjunction with a bank.
Express Micro-Loan:
In addition to its established loan programs, the NCMDC also offers an Express Loan Program for existing small businesses that have been in business for at least one year and need quick access to funding. The program offers a 48 hour loan decision for loan requests up to $5,000 with financing available within a week.
Eligible Businesses
- Start-up or existing business, including restaurants, retail shops, service businesses, manufacturers, home-based businesses, and many more
- For profit corporation, partnership or proprietorship
- Located in North Central Massachusetts
- Tangible net worth not to exceed $6M
- Less than $2M average net profit after taxes during the previous two years
The NCMDC requires that the business being financed will create at least one new job for every $20,000 obtained through our loan programs.
Our lending team can tell you which loans would be best for you and can guide you through the application process. Contact the NCMDC at 978.353.7607. Click below for more details on the programs or download a loan application and other documents below.
Eligible Use of Funds
- Working capital
- Gap financing
- Leasehold improvements
- Acquisition of land and buildings (EDA Only)
- Refinancing of business debt (SBA Only)
- Inventory
- Purchase of new or used equipment
Non-Eligible
- Not-for-Profit entities
- Passive investment companies
- Real estate investment companies
Loan Terms
- Flexible interest rates determined at the time of closing
- Loan terms vary based on the use of the funds
- Secured by all assets which may be subordinated to bank debt
- Guaranty of all owners of 20% or more of the business
- May be secured by personal assets
- Minimum of 10% borrower cash contribution
- Low closing cost
- Business assistance
Requirements
- Completed application, with three years of business and personal tax returns and personal financial statements for principals with 20% or more ownership
- Completed business plan that includes a marketing plan, financial projections, competitive advantages, personnel requirements and management resumes
- Evidence of 10% cash injection by the borrower
Technical Assistance
The NCMDC provides resources and technical assistance to both start-up and existing businesses looking to expand. This includes pre and post loan closing counseling to loan recipients. Throughout the year, the NCMDC and its partners also offer workshops and seminars designed to help small businesses start-up and grow. The NCMDC is also a host for SCORE and Clark University’s Small Business Development Center, both of which provide free counseling for small business owners.
Geographic Area
The North Central Massachusetts Development Corporation (NCMDC) operates in the areas designated by the North Central Massachusetts Economic Development Council of which it is a member. The area covers the following thirty communities plus the communities designated by the EDA to be included in the revolving Loan Fund.
- Ashburnham
- Ashby
- Athol
- Ayer
- Barre
- Boxborough*
- Clinton
- Fitchburg
- Gardner
- Groton
- Harvard
- Hubbardston
- Hudson*
- Lancaster
- Littleton
- Leominster
- Lunenburg
- Orange
- Pepperell
- Petersham
- Phillipston
- Princeton
- Royalston
- Shirley
- Sterling
- Stowe*
- Templeton
- Townsend
- Westminster
- Winchendon
Non-discrimination Statement:
In keeping with its economic development mission and with federal and state laws, NCMDC is committed to the principles of fair or equal opportunity lending. A consistent and high level of assistance and service will be provided to all small businesses and business owners regardless of race, national origin, religion, sex, age, marital status, disability, receipt of public assistance, or other factors. Underwriting standards will be applied fairly and consistently permitting access to credit for a broad range of customers. Applicants with equivalent credit qualifications will receive the same consideration.