Microloan Program Applicant Guide

Purpose & Mission (23G)

The MassDevelopment Microloan Program supports Massachusetts-based small businesses with access to working capital and other eligible business purposes. The program is intended to advance the Commonwealth’s economic development objectives under M.G.L. c. 23G by helping small businesses stabilize cash flow, grow operations, and create or retain jobs in Massachusetts.

What this means for   applicants: We focus on creditworthiness and repayment ability, but we also   consider how a loan supports business growth and employment in the Commonwealth.

Quick Eligibility Check

☐   Massachusetts-based and actively operating

☐   Request is $5,000–$100,000 for a clear business purpose

☐   Business generates (or can reasonably demonstrate) cash flow to support   repayment

☐   Owners are willing to provide personal guarantees and required financial   documents

Ineligible industries include (not limited to): real estate investment, multi-level marketing, adult entertainment, and cannabis.

General Terms and Conditions

Loan Amount: $5,000 to $100,000

Term / Amortization: Up to 6-year note /   6-year amortization

Collateral: All-asset lien on the   business (additional collateral may be required depending on structure and credit strength)

Minimum credit score 575 (no prior or pending charge-offs by creditors permitted)

Guarantees:Personal guarantee   required for all owners with 20% or more ownership interest

Prepayment: No prepayment penalty

Required Attachments (Upload With Your Application)

Use this checklist to prepare your files before starting the application:

☐   Most recent business tax return (minimum 1 year required; 2 years required if   available)

☐   Most recent personal tax return for each owner providing a guarantee (minimum   1 year required; 2 years required if available)

☐   Year-to-date business financial statements (P&L and balance sheet, if   available)

☐   Business Debt Schedule (use the provided template)

☐   Personal Financial Statement (PFS) for each guarantor (use the provided form)

Application Tips

• Name files clearly (e.g., “2023 Business Return.pdf”, “PFS – Owner Name.docx”).

• Make sure any SSNs and EINs are visible where requested (do not redact those fields if required for underwriting).

• If you upload password-protected documents, include the password in your application so we can review them.

• If you do not have a document yet (e.g., year-end returns), upload a note explaining when it will be available.

Fair Lending & Credit Report Authorization

MassDevelopment/MDFA is committed to fair lending. We do not discriminate in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status, age (provided you have the capacity to contract), because all or part of your income is derived from public assistance, or because you have in good faith exercised any right under the Consumer Credit Protection Act.

By submitting an application, each owner/guarantor authorizes MDFA to obtain consumer credit reports and to make other credit-related inquiries as needed for underwriting, periodic review, and collection purposes. (See the authorization language in the PFS form.)

Downloadable Forms (Provided Separately)

• Business Debt Schedule (Excel template) • Personal Financial Statement (PFS) form (Word)

Need help? Contact the Microloan Program team via the application portal or by email - microloans@massdevelopment.com