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Providing Western Massachusetts businesses with access to capital
WMEF provides business loans to start-ups, existing enterprises, and nonprofits. Terms are flexible and designed to address the needs of the business. WMEF offers term loans and renewable lines of credit. Loans are for business purposes including: capital equipment purchases, leasehold improvements, inventory, start-up costs, and working capital. WMEF offers lines of credit up to $20,000 and term loans ranging in size from $500 to $250,000. For larger loans, WMEF will partner with another lender to meet the full financing need. As an alternative lender, WMEF finances businesses which cannot qualify for full financing from a conventional source. WMEF is a mission driven lending organization aiming to eliminate blight, create new jobs, retain existing jobs, and foster job growth. Click here to view Frequently Asked Questions about the WMEF business loan program.
A microenterprise business is one which has five or fewer employees. Microenterprise loans are generally $35,000 or less but are not strictly limited by dollar amount. WMEF has 19 years of microenterprise lending experience and as a result, the microenterprise loan product is fine-tuned to meet the specific needs of this business type. The microenterprise loan is designed to provide our region’s very small businesses with access to capital.
A small business is one with more than five employees. WMEF offers term loans ranging in size from $500 to $250,000 and lines of credit. When the financial need of the business exceeds $250,000 WMEF may partner with another lender to meet the full financing need. In some cases, there is a gap between a business’s financial need and a bank’s ability to meet that need. WMEF can partner with the primary lender to cover the shortfall in collateral thus allowing the project to move forward. Banks and other economic development agencies or organizations provide referrals for loans where there is a gap between conventional bank financing and the business’s financial needs. These types of loans can be for start-up businesses, acquisitions which keep jobs in the local economy, business growth in new products lines or markets, and expansion. WMEF can provide financing directly and as well as in partnership with other alternative lenders. This lending program is growing rapidly as banks are looking for financial support to complete transactions.
New Markets Tax Credits programs incent private investment into large community development projects located in designated low income areas. Typically, projects cost between $1 million and $30 million. This program can close significant financing gaps and can bring difficult projects to completion by combining loans and equity investments so that the project developer receives a below-market interest rate on the full financing package.
