Financing - Boston Redevelopment Authority

BRA & City of Boston Financing

Below, please find information on financing options the City of Boston offers. Please contact the Boston Redevelopment Authority for more information or refer to the industry programs' contact details:

Life Sciences: Martina Toponarski, 617.918.4457
Industrial and Commercial Businesses: Salvatore DiStefano, 617.918.4338
Creative Industries: Carole Walton, 617.918.4259,
Green Businesses: Galen Nelson, 617.918.4447
Retail: Kristen Keefe, 617.918.4452
Other: Lisa Thompson,, 617.918.4280

For information on state financial assistance please visit www.mass.gov or contact the BRA.
For information on federal financial assistance please visit www.business.gov or contact the BRA.

Expansion & Growth
Workforce Development
Hubzone
Industrial & Manufacturing
Retail
Loans under 150K
The Business Loan & Equity Fund
Additional Resources

Local Lending Institutions:

Boston Bank of Commerce (617) 457-4419
Boston Private Bank and Trust Company (617) 556-1900
Capital Crossing Bank (617) 880-1000
Citizen's Bank (617) 482-2600
Salem Five Cents Savings Bank (617) 248-2406
Eastern Bank (978) 740-6137
First Trade Union/Savings Bank (617) 482-4000
Bank of America (617) 346-4000
Liberty Bank and Trust (617) 338-4700
Mercantile Bank and Trust (617) 867-8822
NBG Atlantic Bank (617) 557-0317
Sovereign Bank (617) 757-5522
State Street Bank & Trust Company (617) 786-3000
Wainwright Bank (617) 478-4000

Expansion & Growth

Boston Industrial Development Financing Authority (BIDFA)
BIDFA issues bonds to finance the capital needs of Boston's businesses and institutions. Bonds may be used to finance construction, capital expenses and working capital needs resulting from expansion. There are a variety of tax-exempt and taxable bonds available. Through BIDFA the City of Boston can make its tax-exempt status available to qualified borrowers. The credit of the City of Boston does not support these bond issues; the company must show the financial strength to support the bond. Due to the cost of issuance, these bonds are usually over three million dollars. Contact Frank Tocci at (617)541-2691.

Workforce Development

Workforce Training Fund/Express Program
The Workforce Training Fund's Express Program can provide up to a maximum of $15,000 a year to match training expenses of employers with up to 50 employees. Information about the program can be accessed here.

The Division of Employment & Training's Training Fund staff can be reached at 1-800-252-1591. In addition, John Antonellis of Commonwealth Corporation's Applicant Assistance Program is available to answer questions.

(617) 727-8158, ext. 1223 Toll free number (800) 307-0760 ext. 1223

Hubzone

HUBZONE Prequalification Program
In partnership with the Small Business Administration (SBA), Back Streets Business managers will provide prequalification assistance to designate Boston businesses as eligible participants in the SBA HUBZONE Program. Complete details on HUBZONE can be found in the Federal Assistance section of this guide. Web contact

HUBZONE Contracting Program
This program provides federal contracting and commercial subcontracting preferences for companies located in the City of Boston designated HUBZone. To participate, a company must also have 35% of its employees residing within a HUBZone. Program benefits include sole-source contract (non-competitive), competitive bid contracts, and a price evaluation preference for full and open competition. In addition, commercial businesses working on federal contracts subcontract to HUBZone firms. Contact (617) 565-5590 or visit the web page .

Empowerment Zone

EZ Bonds
Tax-exempt bond financing is available for qualified businesses located within Boston's Empowerment Zone. This financing is similar to that available through BIDFA (see above), however, a broader range of for-profit business enterprises could qualify. Approval includes a guarantee to provide jobs to residents of Boston's Empowerment Zone. Contact Frank Tocci (617)541-2691.

Employment Tax Incentives
Any business employing residents of the Empowerment Zone from certain high-risk groups is eligible for Work Opportunity Credits of up to a total of $2,400 per employee. In addition, Welfare to Work Credits are available to businesses who hire long term family assistance recipients to a maximum of $3,500 per employee. Visit Boston Connects, Inc for more information.

Depreciation Tax Incentive
Under Section 179 of the IRS code, businesses in the Empowerment Zone are eligible for a tax deduction of up to $44,000 in 2001 on any depreciable tangible property acquired after the designation of Boston's EZ. Go to Boston Connects, Inc for more information.

Industrial & Manufacturing

Back Streets Backup Loan Program
This program provides favorable financing up to $250,000 to eligible Back Streets businesses within the City of Boston. The Back Streets Backup Loan Program provides favorable and flexible terms and conditions on loans that vary based on the size of the loan request and the strength of the company's finances. Contact Bill Nickerson at (617)541-2692.

HUBZONE Prequalification Program
In partnership with the Small Business Administration (SBA), Back Streets Business managers will provide prequalification assistance to designate Boston businesses as eligible participants in the SBA HUBZONE Program. Complete details on HUBZONE can be found in the Federal Assistance section of this guide. Web contact

Retail

ReStore Boston
ReStore Boston provides matching loans and grants (up to $7,000 per storefront) to help neighborhood business and property owners complete storefront renovation projects. All loans and grants must meet eligibility criteria. In addition to funding, ReStore Boston provides professional architectural design services at no cost to the business to ensure improvements are well planned and of the highest quality. Contact Aaron Schleifer (617) 635-0290.

Loans under 150K

Boston Local Development Corporation (BLDC)
The BLDC provides loans between $15,000 and $150,000 for businesses in, or relocating to the City of Boston. In addition, businesses that qualify as "Back Streets" businesses are eligible for the Back Streets Backup Loan Program that provides favorable financing up to $250,000. These loans can be used to buy new business property, purchase equipment, provide working capital, expand, or finance leasehold improvements for an existing site. Although the BLDC provides stand alone financing whenever possible the BLDC works with Boston's banking community to provide gap financing through subordinated debt. Contact Bill Nickerson at (617)541-2692.

The Business Loan & Equity Fund
The Business Loan & Equity Fund represents a partnership between Community Development Corporations (CDCs), the government, and the private sector. Urban Edge is the lead manager of The Business Fund with seven other CDCs. The Fund may be used for working capital or to purchase inventory, supplies, furniture, fixtures, machinery, equipment, or real estate. The Fund is also available to finance the acquisition of existing businesses. The Fund offers three products: (1) equity investments of $15,000 to $250,000; (2) loans of $50,000 to $250,000; and (3) loans of $15,000 to $50,000. Contact (617) 983-4803.

Additional Resources

Read Boston Redevelopment Authority News and Updates