Not every business requires financing, but most do in order to cover startup expenses. The WBRA recognizes the challenges for startups and aspiring business owners to obtain access to capital. The below list highlights some of the methods used by business owners to acquire financing.
For conventional financing methods, a good place to start is with your personal bank or credit union. Banks are typically the source with the lowest long-term cost of capital. In addition, the bank you use for your checking account, savings account, car loan, etc. already has a history with you.
If you do not currently use a bank or credit union, these local institutions can easily be found online or by searching the Worcester Regional Chamber of Commerce business directory here: http://business.worcesterchamber.org/list/
The Small Business Administration does not lend directly to businesses, but provides access to capital through their local lending partners.
LINC (Leveraging Information & Networks to access Capital)
The LINC tool connects prospective borrowers with SBA lending partners. Answer a handful of questions and receive feedback and/or offers from lenders!
City of Worcester, Exec. Office of Economic Development
The City of Worcester administers a Microloan Program to assist in the creation of new business and the expansion or retention of existing businesses by providing short- and long-term, fixed rate, low-interest loans to qualified borrowers.
For more information about the City of Worcester’s Microloan Program click here.
Worcester Regional Chamber of Commerce
The Worcester Regional Chamber of Commerce, in partnership with the North Central MA Development Corporation, helps to stimulate the local economy by offering an alternative loan source for both start-up and existing businesses that may not qualify through traditional sources.
For more information, please contact Stuart Loosemore at firstname.lastname@example.org
South Middlesex Opportunity Council (SMOC)
SMOC’s Financial Services division helps financially underserved entrepreneurs start, stabilize, or grow their businesses through access to microloans and technical assistance.
SMOC has a local office at 237 Chandler Street in Worcester. For more information, visit www.smocloans.org or contact Brian Colbert at email@example.com
Ascentria Care Alliance
The Micro-enterprise Development Division of Ascentria Care Alliance provides microloans ranging from $500 – $15,000 for new American entrepreneurs. Eligible applicants must be a refugee, asylee, or other qualifying new American.
For more information, click here
Mass. Growth Capital Corporation
The mission of MGCC is to create and preserve jobs at small businesses, women and minority owned businesses, and to promote economic development in underserved gateway cities and low- to moderate-income communities.
MGCC offers the following products:
– Subordinated Loans
– Lines of Credit
– Term Loans
– Contract and Purchase Order Financing
– Working Capital
– Technical Assistance
To learn more, visit their website at www.massgcc.com
MassDevelopment is the state’s economic development and finance agency committed to achieving three goals: stimulating business, driving economic growth, and helping communities thrive. Some of their financial products include the following:
– Bond Financing
– Tax Credits
– Predevelopment Loans
– Real Estate Loans
– Equipment Loans
– Working Capital Loans and Guarantees
– Emerging Technology Fund
– Collaborative Workspace Grants
And more. To learn more, visit their website at www.massdevelopment.com
Grant opportunities for for-profit businesses can be few and far between; however, browse these programs and agencies to explore eligibility.
The Façade Program is available in the city of Worcester and is offered through the City’s Executive Office of Economic Development. The program seeks to leverage private investment in the physical and aesthetic improvement of commercial or mixed-use properties with first floor/street-level storefronts.
For more information about funding amounts and eligibility requirements, click here or contact Peter Dunn at DunnP@worcesterma.gov.
Small Business Grant Program
The City’s Executive Office of Economic Development also offers a Small Business Grant Program. The program seeks to assist in the creation of new small businesses or the physical expansion of existing small businesses in targeted commercial corridors by providing forgivable loans to qualified applicants.
For more information about the program, click here, or contact Peter Dunn at DunnP@worcesterma.gov.