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The New Bedford Economic Development Council has a portfolio of lending products to assist your business needs. Our financing programs include but are not limited to: Entrepreneurial Loan Fund, Brownfield Clean Up Revolving Loan Fund, Fishing Assistance Loan Fund, and a Community Loan Fund. Additionally, we are a Micro-Loan lender for the U.S. Small Business Administration.
Our Senior Loan officer can tell you which loans would be best for you and can guide you through the application process. Below you will find links to summaries and qualifications for each of the above mentioned loan programs.
The below files are in PDF Format
- ELF - (Loan Overview)
- Micro-Enterprise Loan Fund (MICRO) - (Loan Overview)
- EDA Revolving Loan Fund (Non-Fishing) - (Loan Overview)
- EDA Title IX Fisheries Assistance Revolving Loan Fund - (Loan Overview)
 Entrepreneurial Loan Fund
ELF loans are specifically for businesses with five or fewer employees wherein 51% of the owners can demonstrate that they are of low to moderate income levels. These loans are for a period of 4-36 months with a fixed interest rate of 9.5%. They are ideal for home based businesses and small business owners. Entrepreneurs can take advantage of this financing for purchases such as inventory, computers, machinery or equipment. In some instances, financing will also be made available for working capital. The loans may be in amounts of $500 to $5,000. Applicants must meet one of the two following criteria:
1. The business being assisted must provide services to a residential area that has a high percentage of low-to-moderate income persons
2. The assistance must be provided to a low to moderate income person who owns or is developing a micro-enterprise (a small business with 5 or fewer employees). If the business is owned by more than one person, you must demonstrate that 51% of the owners are low-to-moderate income persons.
Brownfield’s Clean Up Revolving Loan Fund
Brownfield’s loans are offered at low interest rates to facilitate the clean up of commercial or industrial properties which have been contaminated by hazardous materials. Loans are available for these projects in amounts of up to $425,000. Projects that demonstrate job creation or that help to revitalize the city are strongly encouraged to apply.
Eligible sites and projects must meet the following criteria:
• Site must have been determined to have an actual release or substantial threat of a release of a hazardous substance
• Phase I and II site assessments must be completed in accordance with the requirements of the MA Department of Environmental Protection
• The release of hazardous substance does not involve a product which is part of a structure such as lead paint or asbestos or a drinking water supply deteriorated through ordinary use
• There is sufficient time (six months) available to plan and select a response and implement community relations activities prior to clean up
• Site assessment and clean up must be done in accordance with all federal and state regulations
Fishing Assistance Loan Fund
This program is specific to the fishing industry and fishing related businesses. The primary purpose of these funds is to create or retain jobs within the fishing industry or to create new opportunities for those displaced by the fishing industry. Financing may be used for working capital, equipment, furnishings or other fixed assets and improvements. Loan packages are available in amounts of up to $200,000.
Following are some examples of eligible businesses and the types of uses for these loans:
• Vessels: Assistance for activities such as overhaul of mechanical components, gear repair, equipment required by changes in federal regulations, retrofit activities to accommodate technological change-over of equipment targeted to increased fishing of underutilized or alternative species.
• Processors: Financing to assist in the conversion of equipment and hardware supporting new methods of seafood processing and retooling to process new product lines including underutilized or alternative species.
• Suppliers: Shore side suppliers may receive assistance to allow the purchase of inventory items required under new fisheries guidelines. Loans may be made for short term cash flow deficiencies resulting from fishing activities directly referenced to inventory and accounts receivable.
• General Fishing Related: Small businesses with potential for growth and job creation in geographic areas impacted by the dislocation of the fishing industry.
Community Loan Fund
The CLF is a Revolving Loan Fund used to facilitate the creation and retention of jobs, specifically for low to moderate income individuals within the community. These funds are intended as gap financing. It is the intention of the NBEDC to make these funds available to borrowers in conjunction with other sources of funding. Generally, the NBEDC portion of the project funding is less than 50%.
The loan amounts for the Community Fund are from $5,000 to $200,000. Examples of eligible projects include acquisition of land and buildings, equipment, machinery, furnishings, other fixed assets and working capital. We require that a business demonstrate that it can create a minimum of one job for each $35,000 of investment in the first two years of the loan. For example, if the NBEDC loans $70,000, at least two new jobs must be created or retained as a result of these funds. It is also a requirement that at least 51% of those jobs are made available to or retained by low-to-moderate income individuals, as determined by HUD guidelines.
Micro-Enterprise Loan Fund (MICRO)
The New Bedford Economic Development Council, Inc. (NBEDC) established this assistance program with funds provided by the City of New Bedford made available under the Community Development Block Grant entitlement. The Micro-Enterprise Loan Program is defined by the Department of Housing and Urban Development (HUD) in regulation 24 CFR 570.201(0) and is intended to assist businesses having 5 employees or less one or more whom owns the business at the time of application. Under the Micro-Enterprise Loan Program, NBEDC provides loans, which can be used for working capital; equipment, machinery, furnishings and other fixed assets; and to assist in the acquisition of land and buildings. A micro-enterprise business must demonstrate the ability to meet one of the following national objectives of CDBG funding.
1. Low/Moderate Income Area Benefit – The micro-enterprise assisted must provide services to a residential area that has a sufficiently high percentage of Low/Moderate Income persons.
2. Low/Moderate Income Limited Clientele – The micro-enterprise assistance is provided to a low/moderate income person(s) who own or are developing a micro-enterprise. In the instance that the micro-enterprise is owned by more that 1 person the micro-enterprise must demonstrate that 51% of the owners are low/moderate income persons.
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