Business leaders laud CAP’s Unprecedented Role in Creating Jobs and
Generating Tax Revenues for the Commonwealth
WAKEFIELD, Mass.--(BUSINESS WIRE)--
Massachusetts’ Capital Access Program (CAP), the most successful
private-public lending program in the nation, has surpassed the
5,000-loan mark in its 20 years of support for community-based small
Ken Smith, President of Mass. Business Development Corp., said the CAP
program marked its 20th anniversary in 2014 by reaching new milestones
in three key categories: The number of business loans generated (5,093);
the number of jobs created or retained (33,787); and the amount of
payroll taxes generated for the Commonwealth (over $100 million).
CAP is also acknowledged as the leading lender in the state's so- called
"Gateway Cities”, those communities that still have double-digit
employment rates, generating $56 million in loans to 1,331 businesses in
25 cities and towns. No other loan or investment program has generated
more inner city jobs.
“Without the support of the Governor Patrick, House Speaker Robert
DeLeo, Senate President Therese Murray and the entire Legislative
leadership, this program simply could not exist,” said Smith, who has
overseen CAP since its inception in 1994.
Dan Forte, President and CEO of the Massachusetts Bankers Association,
noted that the Capital Access Program has been able to leverage $15.5
million in state funding into $315 million in loans to more than 5,000
companies, many in the commonwealth’s more economically-challenged
Forte also noted that more than 80 local banks in Massachusetts are
involved in the CAP program, a tribute to its history of success. “CAP
is unique in that it sets aside a reserve fund that protects bankers
against default and minimizes their risk,” said Forte.
The Program has also been vigorously supported by the Smaller Business
Association of Massachusetts (SBANE), the Associated Industries of
Massachusetts (AIM) and many local Chambers of Commerce, as well as the
nation’s Small Business Association (SBA).
Smith said CAP loans are made to true “neighborhood” businesses and are
spread throughout the Commonwealth. More than $44 million in CAP loans
have been granted to start ups and an additional $27 million to
companies with revenues of less than $100,000. The average loan is about
$50,000, said Smith. Recent loan recipients include M & H Services in
Chicopee, Bradford Christian Academy in Haverhill, All In One Shops,
Inc. in Westfield, Clothware Inc. in Cambridge and Positive Results, LLC
Mark Haraty, owner of M & H Services, which provides property site
services such as maintenance, landscaping, plowing and sanding, said,
“One of my biggest customers has been growing each year and acquiring
new businesses and properties. The CAP loan has allowed me to service
his needs and continue to grow my business.”
Victoria Kennedy, President of Bradford Christian Academy, also is
grateful for her CAP loan. “The loan gives the school a credit line to
help manage cash flow,” said Kennedy. “As a relatively young
organization, having access to credit is critical for our growth and
For more information on the Capital Access Program (CAP), please visit
the BDC Capital website at www.bdcnewengland.comor call 781-928-1100.
For Mass. Business Development Corp.
Alan Eisner, 617-320-3122
Source: Mass. Business Development Corp.