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CDFI Lending Capital Matching Grant Program

Program Overview

The Commonwealth of Massachusetts is seeking experienced nonprofit lenders to assist established and start-up small businesses in the Commonwealth in obtaining capital. The Commonwealth’s funds are meant to facilitate lending to small businesses that are unable to obtain traditional sources of capital.  

This grant program seeks to increase the flow of capital into Massachusetts’s small businesses and to continue to foster recovery, sustainability, resilience, and growth.  Successful grantees will leverage state funds, along with significant non-state capital sources, to provide small businesses with a spectrum of loan products. 

Program Goals

This grant 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. 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 75% 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 those providing multilingual services and resources.

Grant Amounts and Distribution

Some applicants will be able to apply for both Microlending Operations Support and CDFI Lending Capital Matching Funds. 

Lending Capital Matching Funds

Funds can be used as lending capital for small business loans. It requires 50% organization matching funds at hand to access awarded amount. Up to 5% of award can be used as a loan loss reserve. Award amount up to $500,000. Available for CDFIs and CDCs only.


The Microlending Operations Support and CDFI Lending Capital Matching Funds Grant Program shall be issued to established certified community development financial institutions, community development corporations, and SBA microlenders making direct small business loans to borrowers on a regional basis, and/or providing technical assistance to applicants and borrowers in order to foster business establishment and success; provided that the funds shall be used to support the eligible organization’s lending and technical assistance activities. All lending and technical assistance under this grant program must be provided to Massachusetts-based businesses only.

  • Applicants must provide direct services to small business clients of whom a minimum of 75% from predominantly socially and economically disadvantaged and historically underrepresented groups or underserved markets-
    • Minority-owned
    • Woman-owned
    • Veteran-owned
    • Disability-owned
    • LGBTQ+-owned
    • Gateway Cities
    • Rural communities
    • Low-moderate income
    • Non-native English speaking
    • Cooperatives
  • CDFI lending capital awards require a 50% organization match. Organization most show proof of match at hand by providing bank statement(s) reflecting required matching funds within 6 months of award in order to receive lending capital awarded funds. If an awardee is not able to secure funding match within 6 months, the awarded amount must be recaptured by MGCC.
  • If you are a recipient of previous Lending Capital Matching Grant Award(s), deployment requirements must be met. 
    • FY21 Award - Deployment of 100% of award funds required
    • FY22 Award - Deployment of at least 50% of award funds required
  • Proposals offering multilingual services are highly desirable.

Application Process

Applications will be accepted beginning January 6, 2023 until February 10, 2023 via Submittable. A completed application and supplemental information will be required to be uploaded and submitted. Incomplete and late applications will not be accepted.

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.

Required Documentation:

  1. Matching funds bank statements and/or commitment letters 
  2. Organization’s latest Annual CDFI Fund Certification Report (CDFIs) or MACDC Small Business T.A. & Lending Survey Submission (CDCs)
  3. Most recent Audited Financial Statement or Review 
  4. Current year-to-date organizational Financial Statement: Income & Expense/Balance Sheet
  5. Copy of underwriting Policy
  6. Copy of loan application
  7. 2022 Certificate of Good Standing from the Secretary of the Commonwealth
  8. U.S. IRS Tax Exempt Certification/ Determination Letter

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.