Boston Local Development Corporation (BLDC) logo on top of a view of the Boston Harbor

Boston Local Development Corporation (BLDC)

The Boston Local Development Corporation (BLDC), located in Boston, Massachusetts, 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 City of Boston staff.

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Boston Local Development Corporation (BLDC)

Our Loans

In order to be eligible, the for-profit business must be located in the City of Boston.
Please visit 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 Boston’s banking community. 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

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 for-profit business must be located in the City of Boston.
Please visit for a list of Boston neighborhoods.

BLDC Loans are underwritten using standards common to the banking industry. Credit reports are run on all company owners (20% or more of business ownership). Loan packages will include:

  • Personal financial statement for each owner
  • Three years of personal tax returns for each owner
  • Three years of business tax returns (if applicable)
  • 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 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.


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, the current rate is 6.75%.


The borrower 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