Small Business Loans
Most small businesses rely on lenders to provide the capital they need to either open a business or to finance capital improvements. Without loans, many small business owners would be unable to realize their dreams of opening a business or expanding their operations
SBA Loan Programs
The US Small Business Administration (SBA) offers a variety of loan programs for very specific purposes. Take some time to study the programs described in this section, to see if you qualify to participate.
7(a) Loan Program
The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes
Microloan Program
What is a Microloan? The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $50,000, but the average microloan is about $13,000.
CDC/504 Loan Program
What is the CDC/504 Program? The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
A Certified Development Company (CDC) is a private, nonprofit corporation which is set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders to provide financing to small businesses, which accomplishes the goal of community economic development.
For more information on SBA Loans: www.SBA.Gov
Coastal Community Capital
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Coastal Community Capital is a division of Cape & Islands Community Development, Inc, a non-profit community development lender serving Massachusetts businesses since 1995. They promote economic development through small business growth, management of the region’s small business loan fund, and provide entrepreneurial support through the EntreCenter. Coastal Community Capital has unlimited access to an array of funding sources, including SBA 504 loans, loan guarantees, and direct lending which are constantly evolving to provide the best solutions for borrowers.
The Town of Barnstable partnered with Coastal Community Capital to establish and administer a Micro-Enterprise Loan Program funded by the U.S. Department of Housing and Urban Development Community Development Block Grant program (CDBG). The general guidelines and contact information are listed below:
- Eligible applicants: defined as micro-enterprise a business; that is a business that has five (5) or fewer employees, one or more of whom owns the enterprise. Owners of such business must be income eligible to qualify. Please click here to see the current Income Limits.
- Location: The micro-enterprise must be located within the boundaries of the Town of Barnstable. The Town includes the seven villages: Barnstable, Centerville, Cotuit, Hyannis, Marstons Mills, Osterville, and West Barnstable
- Loan Amounts: A job must be created or retained for each $35,000 borrowed. For amounts less than $35,000 one job must be created or retained.
- Eligible Activities - under the program, eligible activities are defined as the provision of credit to micro-enterprise businesses (or micro-enterprise start-ups) by way of loans and loan guarantees for establishment, stabilization and/or expansion. Most bona-fide costs associated with starting and operating a business are eligible for funding, except for purchase of land, major rehabilitation of structures, demolition of structures, new construction, purchase of vehicles and all activities which may cause displacement of residents and/or businesses. Some restrictions apply
- Interest Rate: The interest rate charged to borrowers is WSJ Prime Rate.
- HUD National Objective: Successful applicants are required to meet the HUD National Objective defined under the low-moderate job requirements (i.e. create/retain one full-time equivalent job for every $35,000 of loan fund received)
- Additional Requirements: Loan applications from eligible micro-enterprises submitted to the Coastal Community Capital must address all applicable requirements of the Community Development Block Grant (i.e., Environmental Reviews, Davis-Bacon Wage Determinations, Section 3 Local Employment, reporting and others)
A 3.25% fixed interest rate business loan is available to eligible businesses located in the Town of Barnstable. Loans can be used for machinery and/or equipment acquisition, debt refinancing or working capital. The business must employ five or less including the owner(s) must be for profit and the business owner must be income eligible. Other guidelines apply.
Prospective applicants under the program should contact:
Coastal Community Capital
5 Shoot Flying Hill Road
Centerville, MA 02632
Phone: 508-362-3755
Contact: Jeannine Marshall:
Business Incentives
Town of Barnstable:
Growth Incentive Zone(GIZ) in Downtown Hyannis
The Growth Incentive Zone will allow the Town to direct opportunity to the center of the Village of Hyannis by supporting village-scale density and mixed use zoning furthering a town-wide plan to create a healthy community and a sustainable economy. Downtown Hyannis is an area of Barnstable with existing growth infrastructure and capacity but many underperforming properties. This plan maximizes the infrastructure advantage while minimizing the negative impacts of growth. It highlights the potential for people to live and work on a smaller environmental footprint reinforced by steps taken to offset growth in areas of Town where development threatens those human and environmental measures that determine our quality of life
Growth Incentive Zone
Tax Increment Financing(TIF)
The Town of Barnstable is part of the Barnstable County Regional Economic Target Area which allows Barnstable to use local and state tax incentives to attract new business, expand existing businesses, and stimulate job creation and business investment.
The Town of Barnstable seeks to enter into Tax Increment Financing(TIF) Agreements for qualifying projects that:
- Encourage qualifying existing businesses to expand
- Attract new businesses that are compatible with the Barnstable Local Comprehensive Plan (LCP) and the goals of the Barnstable Economic Development Commission (BEDC)
- Stimulate capital investment and creation of jobs paying above the area median income for Barnstable. Provide substantive increases in employment with salaries higher than the area median income. Provide private capital investment resulting in a substantive increase in net taxable property value.
- Foster reconstruction and renovation of vacant or underutilized commercial properties.
TIF Guidelines
TIF Application Checklist
Contact: Jo Anne Miller Buntich at 508 862 4735 for more information
Commonwealth of Massachusetts:
Massachusetts Office of Business Development (MOBD) is committed to helping companies create and retain jobs, as well as promote private investment in our state. They facilitate simplified, timely access to a host of governmental and non-governmental resources and incentive programs that will help businesses grow faster and stronger in Massachusetts:
Economic Development Incentive Program
The Economic Development Incentive Program (EDIP) is a tax incentive program designed to foster job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state tax incentives in exchange for job creation, manufacturing job retention and private investment commitments.
Investment Tax Credit (ITC)
The Massachusetts Investment Tax Credit (ITC) offers a three-percent credit for qualifying businesses against their Massachusetts corporate excise tax. The credit is to be used for the purchase and lease of qualified tangible property used in the course of doing business.
Research & Development Tax Credit
Massachusetts offers a tax incentive for research and development investment for both manufacturers and R&D companies. This tax incentive was designed to remove any obstacles to R&D investment and spur growth and innovation throughout the Commonwealth. The R&D tax credit closely resembles the federal credit program, however, it specifically offers qualifying Massachusetts companies many unique features for doing business in Massachusetts.
MOBD is a state agency under the Executive Office of Housing and Economic Development: www.mass.gov/
State and Local Energy Efficiency Programs
Here you will find a listing of state, local and regional programs that help small businesses become energy efficient. These programs offer financial assistance in the form of grants and loans for making energy efficient upgrades. Grants are also available to firms developing energy efficient technology. These programs also offer free or low-cost technical assistance to help small business owners conduct energy audits and implement energy efficient technology
Federal:
US Government Tax Credits
Energy Tax Breaks for Businesses
The American Recovery and Reinvestment Act of 2009 amended or added numerous energy tax incentives available to businesses
