News Column

Capital Access Program (CAP) Achieves 20-year Milestone Surpassing 5,000 Loans To Community-Based Massachusetts Businesses

May 28, 2014

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 businesses.

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 communities.

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 in Holyoke.

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 sustainability.”

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

alanseisner@hotmail.com

Source: Mass. Business Development Corp.


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