Boston Local Development Corporation (BLDC)
Are you a small business owner in Boston and in need of funding?
Boston Local Development Corporation (BLDC) offers loans to Boston small businesses in the service, industrial and manufacturing sectors.
BLDC is a private 501(c)(3) non-profit corporation, located in Boston, Massachusetts, and governed by an independent Board of Trustees. The day-to-day operation of the program is provided by City of Boston staff at the Planning Department.
BLDC fulfills its mission to foster job creation and retention by providing loans to small businesses that enable owners to retain current employees and create new jobs.
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OUR LOANS
In order to be eligible, the for-profit business must be located in the City of Boston.
Please visit bostonplans.org/neighborhoods for a list of Boston neighborhoods.
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 Community Development Financial Institutions (CDFI) and local banks in Massachusetts. The loan funds have helped to create or retain over 3,500 Boston jobs.
Loan Amounts:
- The standard BLDC loan is available for existing businesses, new ventures, and businesses relocating to the City of Boston. These loans range from $40,000 to $150,000.
- The Backstreets loan provides financing for Boston companies in the industrial and manufacturing sectors. These loans differ from our standard loan in that amounts can reach up to $250,000.
Uses of Loan Funds:
- Support the working capital needs of a growing small business
- Assist in the purchase of a new business property
- Fund construction of leasehold improvements
- Fund expansion of an existing business
- Purchase new equipment and machinery
- Provide for expanded inventories
Loan Process
In order to be eligible, the for-profit business must be located in the City of Boston.
Please visit bostonplans.org/neighborhoods for a list of Boston neighborhoods.
Additionally, the business must be a Sole Proprietorship, LLC, Partnership or Corporation.
Loan Application and Documentation:
BLDC loans are reviewed and approved using the same standard practices followed by small‑business lenders across Massachusetts, including CDFIs and traditional banks.
All individuals who own 20% or more of the business, as well as any principal operator(s) with majority responsibility for running the business, must apply for the loan, provide a personal guarantee, and authorize a credit check as part of the application process.
Loan packages will include:
- Personal financial statement and tax returns for each owner or principal
- Business tax returns
- Three years of business financial projections
- A recent business balance sheet
- A recent business profit and loss statement
- Sources and uses of loan funding
Other items may include an aging of payables, receivables, inventory, appraisals, business plan, and other information specific to the loan request.
BLDC accepts applications from new businesses. A detailed written business plan with financial projections is required.
Please complete BLDC’s online form “Great Started” in order to schedule a meeting with a member of our team. After the business owner(s) and principal (s) meet with BLDC staff and an initial assessment is completed, we will provide the formal BLDC loan application to initiate the full loan review and approval process.
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 loan application and documentation submitted by the applicant.
Guarantees
The BLDC requires a personal guaranty from all individuals who own 20% or more of the business, as well as from any principal operator with majority responsibility for managing the business.
Loan Security
As part of the loan approval, the BLDC Board of Trustees may require the pledge of both corporate and personal assets of the borrower(s) and principal(s). 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, the current rate is 6.75%.
Fees
The borrower(s) and principal(s) will be responsible for all attorney and other closing expenses at closing. The BLDC also collects a 1% fee at closing.
Boston Local Development Corporation
China Trade Center
2 Boylston Street
Suite 102
Boston, MA 02116