The new loan program provides financial relief to small businesses impacted by this year’s weather
Agents dealing with insureds with small businesses in Massachusetts take note. Governor Baker’s office announced last week that the Massachusetts Growth Capital Corporation (“MGCC”) has approved a new snow storm loan fund for those small business in the Commonwealth who have suffered financially as a result of this winter’s harsh weather conditions.
“As small businesses throughout Massachusetts continue to recover from extreme winter weather conditions that have restricted business, we are pleased to announce this low-interest loan program is available to help them regain their financial stability,” said Governor Baker. “While our local economies continue to bounce back, we encourage everyone to continue shopping at their local retailers, restaurants and small businesses.”
“Our small businesses are the backbone of our economy and it is important that we help ensure their longevity by lending a helping hand when they need it most,” said Lieutenant Governor Polito. “We are confident that our entire economy will continue to recover from one of the toughest winters we have seen in decades.”
According to Governor Baker’s office, the MGCC is allocating up to $1 million dollars in loan funds in order to provide micro-loans to small businesses in amounts between $5,000 t0 $10,000. The MGCC will be focusing on those small businesses who have suffered financial losses in communities affected by the snow and harsh winter weather, with a particular emphasis on Boston and other gateway communities.
The MGCC will be the entity responsible for supervising and managing all aspects of the Snow Storm Loan Fund. For agents who have insureds that may be dealing with uninsured claims, business interruption, or other claims from this year’s various snow storms, the loan program might be worthwhile to mention.
The MGCC is expecting to run this program through May, 2015.
More information on how to apply for a Snow Storm Loan
The following is more details from the MGCC about the general terms and conditions for the Snow Storm Loan Program
- The loan program is open to all Massachusetts-based businesses;
- Companies involved in real estate investment, multi-level marketing, adult entertainment, and or firearms are ineligible to apply for a loan under this program;
- Loan amounts ranged from $5,000 to $10,000 dollars;
- Loans offered with 3-year note with a 6-month moratorium on principal (interest is due monthly), then 30-month of principal and interest (direct debited)l
- The annual interest rate on the loan is 5%;
- A personal guarantee is required of all owners who also must have a 20% or more interest in the company;
- All asset lien on business;
- No prepayment penalty.
The MGCC website notes the following, however: “Approval contingent on business being profitable prior to 2015 snowstorms and no adverse personal credit reports 60 days past due for the last six months of 2014.”
As always, for those interested in getting the specific details about the Snow Storm Loan program or to file a loan application, it best to go directly to the source which in this case is the Massachusetts Growth Capital Corporation’s website which can be accessed here.