The North Central Massachusetts Development Corp. on Wednesday announced the launch of a small business loan program where businesses who haven't been able to get money from a lending institution can go to get loans worth up to $150,000.
Through the "A Second Chance" loan program, NCMDC's loan officers will review loan requests from small businesses that have previously been denied by banks, credit unions or other lenders for free and without obligation. NCMDC, which has more flexibility than traditional lenders, can also use its connections with financial institutions to help with funding approval.
Banking restrictions put in place in 2008 and strict underwriting guidelines have made it more difficult for small businesses to secure loans for less than $100,000. NCMDC can provide up to $75,000 for working capital, leasehold improvements, furniture and fixtures, refinancing, and machinery and equipment.
Eligible businesses include small businesses and startups such as retail shops, service businesses, small manufacturers, home-based businesses and several others.
NCMDC has granted over $4.3 million in loans since 1996, and has leveraged those funds with financial institutions providing $14.3 million and $3.2 million from local investors and business owners to create thousands of new jobs in North Central Massachusetts.