We even help small businesses get into business

Merrimack Valley Economic Development Corporation (MVED), a non-profit subsidiary of the Merrimack Valley Planning Commission, has established a Revolving Loan Fund to support the growth and retention of jobs in the Merrimack Valley. The Merrimack Valley Economic Development Loan Fund is made possible primarily by funding from the U.S. Economic Development Administration and the Massachusetts Department of Housing and Community Development. Funds are available to provide gap financing for small business, industrial and some commercial projects.

Two Primary Loan Fund Services

1. Financing

• Gap financing to supplement private financing inadequate to meet a need
• Flexible terms and relaxed underwriting criteria to open the window of creative financing opportunities
• Favorable interest rates adequate to achieve a positive debt service coverage

1.  Identification and coordination of supportive resources, including: technical assistance, job training, and business development through the Massachusetts Office of Business Development and other business agencies.

How It Works

Under the Loan Fund Program, MVED provides loans in the range of $25,000 to $100,000, often used as gap financing on a larger project. The MVED portion of the project is typically less than 20 percent.

• Interest Rate—Tied to market rates and fixed for the term
• Loan Term—Up to 10 years

Eligible Recipients

Eligible recipients include private, for-profit businesses unable to obtain adequate financing from private sources. For example:

• Young firms with sound business plans, managerial capability, and significant equity investment
• Smaller firms with a credible history and in need of small loans unavailable from traditional sources
• Mature firms reorganizing to improve operations or realize an important market opportunity, such as defense contractors or textile/apparel companies

Eligible Projects

Any project in our member communities that demonstrates a need for the loan may qualify. For example, acquisition of land and buildings, construction and/or renovation, equipment and furnishing, and working capital.

Process

The MVED Corporation will evaluate applications for appropriateness by reviewing:

• Brief history and background (business plan for start up business)
• Statement on the use of funds
• Three-year historical financial statements and/or IRS returns
• Interim financial statement not older than 90 days (can be done in-house)
• Projections (at least one year)
• Personal financial statements for principals with 20% or more ownership
• Appraisals (copy of existing appraisal or tax valuation accepted)

The MVED Loan Application can be found here