SBA 7(a) Loans in Massachusetts

SBA 7(a) Loans in Massachusetts

As a Massachusetts small business owner, one of the challenges you face is how to get financing to get your company off the ground or expand it. Business loans are more complicated than getting a mortgage for your home; each business, its circumstances, cash flow and future prospects are unique. You need to find a solution that can be individualized to fit your set of circumstances.

Fortunately, small business borrowers in MA have a number of options, including a Massachusetts SBA business loan, for their needs.

Getting a Massachusetts Business Loan: How Much Do you Need to Borrow?

Before you approach a lender about a Massachusetts business loan, get clear about how much you need to borrow and why. If you’re borrowing money to buy equipment, get quotes from more than one provider to show the bank that you have done your homework and have shopped around to get a reasonable price on what you need. It’s a good idea to show the lender that you have also considered leasing the equipment and why buying makes more sense for your business.

Consider Available Business Loan Options Carefully

Your first option to obtain financing for your small business will likely be to approach a lender to find out whether you qualify for conventional financing. However, this isn’t the only option available to you; if you have been turned down by a lender, you may still be able to get the money you need through one of the following programs available to assist small business owners in Massachusetts.

Massachusetts Growth Capital Corporation Assistance

Massachusetts Growth Capital Corporation (MGCC) was established in 2010. It provides loan guarantees, working capital and technical assistance to business owners to help them solve “specific financial and operational problems.” MGCC provides half of the financial assistance, while the business receiving help invests the other half.

MGCC has a number of options that can help your business, such as:

  • Subordinated loans that are usually written as five-five year term loans in conjunction with bank financing

  • Lines of credit to allow you to meet your working capital needs

  • Term loans

  • Contract and purchase order financing

  • Working capital for most business operations

  • Guarantees (partial or limited) for a loan where the lender has determined the business doesn’t have enough collateral to secure the loan

MassDevelopment Loans

MassDevelopment was formed in 1998 when the Government Land Bank and the Massachusetts Industrial Finance Agency merged. It specializes in providing financing for complex real estate and business projects using a combination of low rates and flexible terms.

  • Commercial real estate loans for acquisition, construction, renovation and permanent financing up to $7.5 million

  • Equipment Loans up to $2 million

  • Working Capital Loans up to $50,000

Massachusetts SBA Business Loan

The Small Business Administration (SBA) guarantees loans to business owners who want to start or expand their operation. If you’re operating a for-profit business in the US and have invested your own resources in the business (time or money), you may qualify for this type of financing.

Learn more: SBA 7(a) Loan Fact Sheet

Massachusetts SBA business loans are available to business owners who have exhausted other means of obtaining the funds they need. If you can’t qualify for conventional financing, this may be a great option available to you.

To learn more about the SBA 7(a) loan program or to get a free quote, simply click the button below to connect with us today!