The Boston Local Development Corporation (BLDC) works to increase employment opportunities for Boston residents by providing small business loans with a focus on commercial, industrial and service companies.
The BLDC is a private 501(c)(3) non-profit corporation governed by an independent board of trustees. The day to day operation of the program is provided by the Boston Planning & Development Agency’s Financial Services department.
Success Stories
Ginkgo Bioworks
The billion dollar organism company designs custom microbes for customers across multiple markets including nutrition, health and consumer goods.
Third Piece Knitwear
After the company received a $150,000 loan from the BLDC, owner Kristen Lambert opened an exciting new retail store in the South End.
Imported Foods Corporation
In the fall of 2017, the wholesale distributor of primarily specialty food products received their third round of financing from the BLDC.
Our Loans
In the last twenty years, the Boston Local Development Corporation (BLDC) has provided over $20 million in small business loans. These loans have successfully leveraged over $95 million through collaborations with Boston’s banking community. The loan funds have helped to create or retain over 3,500 Boston jobs.
In order to be eligible, the business must be located in the City of Boston.
- The Standard BLDC Loan Fund is available for existing businesses, new ventures, and businesses relocating to the City of Boston. These loans range from $25,000 to $150,000.
- The Backstreets Boston Back-up Loan Program provides financing for Boston companies in the industrial and manufacturing sectors. These loans differ from our standard program in that loan amounts can reach up to $250,000.
Our Loans can be used to:
- support the working capital needs of a growing small business,
- assist in the purchase of a new business property,
- fund construction of leasehold improvements,
- purchase new equipment and machinery,
- construct an addition to an existing plant,
- and provide for expanded inventories.
A critical component of BLDC financing is participation with local lenders. The BLDC coordinates with Boston’s banking community to provide gap financing through subordinated debt.
Loan Process
In order to be eligible, the business must be located in the City of Boston.
BLDC Loans are underwritten using standards common to the banking industry. Credit reports are run on all company principals. Credit packages should include:
- three years of tax returns (if applicable),
- financial statements,
- three years projections,
- a recent balance sheet,
- and a recent profit and loss statement.
Other items may include an aging of payables, receivables, inventory, appraisals, and other information specific to the loan request.
BLDC loan applicants include businesses located in the City of Boston, those seeking to relocate, or those creating a new enterprise in the City. The borrower may be a corporation, LLC, partnership, sole proprietor, or in some instances, a realty trust.
BLDC loan funds are provided to support the attraction and retention of jobs for the residents of Boston. BLDC programs will target businesses that have a history of, and a demonstrable potential for, job creation.
Requests can be processed within thirty days of a complete financing package submission. Application processing time is dependent on the quality and completeness of the package submitted by the applicant.
Guarantees
The BLDC requires the Personal Guaranty of all principals owning 20% or more of the borrowing entity.
Loan Security
As part of the credit approval, the BLDC Board of Trustees may require the pledge of both corporate and personal assets of the borrower. This can include a lien on all business assets and a mortgage on both corporate and personal real estate.
Interest Rates
The BLDC uses the Wall Street Journal Prime Rate plus 2% for its benchmark interest rate. However, there is currently a minimum rate of 6%.
Fees
The borrower will be responsible for all attorney and other closing expenses at closing. The BLDC also collects a 1% fee at closing.