Small Business Loans

Springfield COVID Impacted Small Business Loan Program 

Program Manager: Common Capital

Email: kgaughan@commoncapitalma.org

Eligibility for the Springfield Covid Impacted Small Business Loan Program


To be eligible for a loan from this program, businesses must be located in a City of Springfield neighborhood that qualifies as low- to moderate-income (many Springfield neighborhoods qualify; contact us for details). Priority given to covid-impacted businesses that:

Are owned by women and/or people who are minorities
Have less than $1 million in annual revenue
Demonstrate significant neighborhood benefit

Loan Terms

oAmounts from $1,000 to $300,000
oTerm typically up to 5 years; longer terms may be available
oCollateral required if available
oInterest rates are higher than banks and lower than credit cards; currently between8.25% and 10.0%
oLower interest rates, flexible repayment terms, and partial loan forgiveness may be available on a case-by-case basis (determined during loan underwriting)


How to Apply
Download application at commoncapitalma.org/get-a-loan/common-capital-loans

NOTE: Proposed projects are required to fulfill basic requirements of the CDBG program, particularly as they relate to job creation goals, elimination of slum and blight, project impact upon the environment, and the Davis/ Bacon Act. The City of Springfield during the application process will advise applicants of these requirements.

Small Business Storefront Grants

*** NOTICE *** The Storefront Improvement Program is temporarily suspended while the City of Springfield responds to emergency needs due to Covid-19. For emergency business grant information, please visit the city's Covid-19 Business Resource website here.

The CDBG Storefront Grant program is designed to assist neighborhood businesses located within CDBG eligible areas complete basic storefront improvement projects. A typical grant award ranges from $2,000 to $7,000.   As the program is financed with Community Development Block Grant funds, businesses must meet certain location eligibility requirements

NOTE: Proposed projects are required to fulfill basic requirements of the CDBG program, particularly as they relate to job creation goals, elimination of slum and blight, project impact upon the environment, and the Davis/ Bacon Act. The City of Springfield during the application process will advise applicants of these requirements. 

Mentorship

SCORE is a non-profit organization dedicated to entrepreneurial education through face-to-face and email counseling. (413) 785-0314  http://westernmassachusetts.score.org/ 

The Massachusetts Small Business Development Center Network's Western Regional Office provides free and one-to-one business advising to prospective and existing small businesses. (413) 737-6712  www.msbdc.org/wmass/

The Western New England University School of Law's Center for Innovation and Entrepreneurship offers legal and business consultation to entrepreneurs and small businesses. (413) 796-2030 or visit http://www1.wne.edu/law/centers/innovation-and-entrepreneurship.cfm 

Government

Supplier Diversity Office (SDO) The Supplier Diversity Office (SDO) of the Operational Services Division (OSD), certifies diverse businesses and also manages several business programs that help enhance the marketability of small and diverse businesses when they bid on public contracts. https://www.mass.gov/supplier-diversity-office

The Small Business Administration (SBA) aids with starting, building and growing businesses. A branch office is located Springfield. www.sba.gov/   Ph# 800-827-5722

The Workforce Training Fund (WTFP)- is a state fund enacted into law in July 1998 and financed entirely by Massachusetts employers. Its purpose is to provide resources to Massachusetts businesses and workers to train current and newly hired employees. www.mass.gov/wtfp please contact Angela Holley at (617) 717-6911 or wtfp@commcorp.org.

The Massachusetts Community Development Finance Corporation provides financing to small businesses in Massachusetts with the purpose of creating or preserving jobs and promoting economic development. (617) 337-2815  http://www.mcdfc.com/ 

MassDevelopment offers Tax-Exempt Bonds which provide a very low interest rate financing for capital projects. Projects financed must be eligible for tax-exempt financing under the federal tax code. Tax-Exempt Equipment Lease/Purchase Program provides manufacturers, nonprofit institutions, and environmental enterprises with a low-cost alternative for financing $300,000 or more in new equipment needs. This organization was formerly known as the Massachusetts Development Finance Agency before merging with the Massachusetts Industrial Finance Authority and Massachusetts Land Bank. 413.731.8848  http://www.massdevelopment.com/about/regional-offices/springfield/  

Page last updated:  Wednesday, April 7, 2021 09:41 am