Types of Loans and Grants Available

The New Bedford Economic Development Council and Commercial bank loans don’t require entrepreneurs to turn over equity or company control.

In general, banks prefer to make loans of more than $10,000 for those with a banking history and the NBEDC can be more flexible with start-up ventures. The NBEDC and banks like to see:

  • Good credit
  • A solid business plan
  • Ability to repay the loan
  • Collateral

Line of Credit is an arrangement in which a bank extends a specified amount of credit to a specified borrower for a specified time period.  A line of credit is best suited to help cover expenses that tend to fluctuate throughout the course of a year.

Home equity loans are a cost-effective alternative to other types of loans because they offer good interest rates available.  But you may not want to risk your family home to launch your business venture.

Equipment lease financing gives you access to many types of equipment — computers, copiers, fax machines, cars and trucks — without tying up your cash or credit lines. Although it doesn’t bring in cash, leasing reduces the amount of cash you otherwise have to raise to start.

Cash advances from credit cards are an easy and quick way to gain access to cash.  But as a long-term financing method, they can be expensive — credit card interest rates typically run much more than you would likely pay on a bank loan.

Factoring allows a company to “sell” its accounts receivables to an outside company at a discounted rate. This allows the company to receive funds immediately to fund operations and ease cash flow. Factoring is done by private companies.

NBEDC Lending & Grant Program

The NBEDC has a portfolio of new grant and lending products to assist your business needs. Grant programs are available and tailored to new start-ups and existing businesses alike. And our lending office manages Revolving Loan Funds including an EDA Funded RLF, a Brownfield RLF, and multiple privately funded revolving loan funds.  Additionally, as an intermediary for the U.S. Small Business Administration, we are an SBA Micro-Loan lender.

Our Senior Loan officer can tell you which loans would be best for you and can guide you through the application process. Learn more here.

SBA/Bank Loans

Once you’ve determined that an SBA or traditional bank loan is the right kind of financing for your business, you’ll need to package your financial information in a way that makes it easy for a banker to make a favorable decision. At the most basic level, you will need to provide:

  • Basic information about your business
  • Basic information about the loan you are requesting
  • Financial information about your business

We highly recommend that you work with one of our network Resource Partners who are skilled in helping business owners prepare themselves to approach funding sources.  Simply search for financing assistance in the Resource Navigator to find the right organization near you.

The SBA provides a summary of their loan products.

Statewide Loan & Grant Funds

Technology Grants

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants fund research and development efforts of a high risk nature that may have excellent commercial potential.

Small U.S. businesses are eligible to participate in the SBIR/STTR program if they are for-profit and have 500 or fewer employees. Nonprofit organizations are not eligible.

The Massachusetts Small Business Development Center  can be helpful in getting started with these grant programs

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