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CDFI & CDC Capital Matching Program

Program Overview

In accordance with the Commonwealth’s economic development plan, Partnerships for Growth, the CDFI & CDC Capital Match Program seeks to spur job creation across the Commonwealth, support entrepreneurship and small business recovery, sustainability, resilience and growth by lowering the barriers to capital access faced by small businesses.

In FY2021, MGCC will award grants to eligible non-profit community-based lenders with proven history and track record of small business lending/investment in underserved communities in Massachusetts. Click here to view and download full RFP.


Timeline

Applications will be accepted beginning March 22, 2021 at 2pm EST.
The deadline for applications will be April 19, 2021 at 11:59pm EST.

Program Goals

The CDFI & CDC Capital Match Program seeks to increase the flow of capital into Massachusetts’s small businesses and create recovery, sustainability, resilience, and growth. By providing a new source of matching funds for established regional certified nonprofit lenders, the program seeks to build the capacity of nonprofit community-based lenders to finance regional business growth.  

Successful grantees will leverage state funds, along with significant non-state capital sources, to provide small businesses with direct loans and grants. In addition, allowance for loan loss reserves and creation of new loan fund programs will also be supported by this the CDFI & CDC Capital Match Program.

Successful grantees will provide capital to small businesses that unlocks job growth and put small businesses on a path toward bankability. Successful grantees will fuel small business growth and revitalize their communities.

Consideration will be given to:

  • Organizations with a diverse portfolio make-up, particular an investment pool of at least 60% in businesses that are Women-Owned Enterprises, Minority-Owned Enterprises, LGBTQ+-Owned Enterprises, Veteran-Owned Enterprises, Disabled Individual-Owned Enterprises, Immigrant or Non-Native English-speaking Populations, Low-to-Moderate Income Entrepreneurs, Businesses located in economic disadvantaged urban or rural communities, Businesses located in Gateway Cities.
  • Organizations currently assisting small businesses and entrepreneurs impacted by COVID-19.
  • Organizations those providing multilingual services and resources.

MGCC will be prioritizing proposals from organizations currently assisting small businesses and entrepreneurs impacted by COVID-19. Consideration will also be given to those providing multilingual services and resources. 

Grant Amounts and Distribution

The CDFI & CDC Matching Grant Program will accept proposals from individual organizations. Award amounts will not exceed $1,250,000. Award disbursements will be at the discretion of MGCC depending on the structure of applicant’s matching funds.

Eligible activity

Eligible activity definition 

Small business loans

  • Funds used as small business loans, requires 50% organization matching funds.

Small business grants

 

  • Up to 25% of total request. Grants to small businesses up to $10,000 to help pay for services and other resources which promote stabilization- may be used to cover payroll, interest on existing loan, rent, benefit, utilities, payroll, requires 25% organization matching funds.

Allowance for loan loss reserves for new investments

  • Grant funds set aside as reserves to mitigate any possible loss on new loan investments. Covers up to 7.5% of loan portfolio request, requires 50% organization matching funds.  

New loan fund to address community need (such a support for contracts)

  • 10% of this request can be used for planning for strategic initiatives, requires 25% organization matching funds.

Eligibility

Eligible applicants are Community Development Financial Institutions certified by the United States Treasury, and Community Development Corporations certified under Chapter 40H of the Massachusetts General Laws.

Provide direct services to small business clients of whom a minimum of 60% reflect the following underserved target populations: Women-Owned Enterprises, Minority-Owned Enterprises, LGBTQ+- Owned Enterprises, Veteran-Owned Enterprises, Disabled Individual-Owned Enterprises, Immigrant or CDFI & CDC Matching Grant Program Page 4 of 12 Non-Native English-speaking Populations, Low-to-Moderate Income Entrepreneurs, Businesses located in economic disadvantaged urban or rural communities, Businesses located in Gateway Cities. A completed application, and any supplemental information, including the applicant’s most recent annual report and audited financial statement will be required to be uploaded and submitted.

Application Process

Applications will be accepted beginning March 22, 2021 at 12pm EST.
The deadline for applications will be April 16, 2021 at 11:59pm EST.

Applications will be reviewed for responsiveness, track record and historical impact, projected grant impact, and consistency with Administration funding priorities. As needed, MGCC will gather a team of independent reviewers to review pending applications and develop recommendations for funding. Final decisions will be rendered by MGCC. Overall program funding decisions are at the discretion of the Secretary of Executive Office of Housing and Economic Development and are not subject to challenge or appeal.

Contract Process

Applicants that are approved for funding will be notified in writing of the approval, with instructions for demonstrating readiness and any other required submissions, as determined by MGCC. All awards are contingent upon the execution of a binding funding agreement between MGCC and the applicant. Awards may be subject to conditions as set out in the award notification letter. Grant contracts will only be issued for projects that successfully meet all requirements set out as a condition of the award. Any project that receives an award but does not meet the requirements by a specified date will lose its funding commitment for that year and may be penalized during future funding rounds.

Learn more about this grant opportunity and apply through MGCC's online application portal, powered by Submittable:

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