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Microloan Fund
The Microloan Fund was established to assist small and start-up businesses locating in downtown Lynn who may not have the capacity or the ability to borrow in the private market. The Economic Development and Industrial Corporation of Lynn (EDIC/Lynn) administers this program which is funded by the U.S. Small Business Administration.
This programs are available to businesses requiring $25,000 or less. Interest rates vary.
- For existing businesses, a loan package will be preparedby the staff for submission. We expect all loan requests to be processed within forty-five (45) days.
- For applicants looking to start-up a new business, the EDIC will request that the prospective borrower work with the staff to prepare and determine the viability of the proposed new business.
For more information, contact:
Economic Development and Industrial Corporation
39 Central Square
Lynn, MA 01901
Phone: (781)581-9399
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EDIC/LMFC Loan Fund
This program provides assistance to businesses located in the City with preference being given to the Downtown Planning Area.
The Lynn Municipal Finance Corporation (LMFC) loan program is funded by the Community Development Block Grant and is administered by the EDIC. This is a fixed asset loan program for the purchase and/or improvement of land, buildings, plants or equipment, including new construction or renovation of existing facilities.
The maximum loan available is $100,000 and should be complemented with private lender financing. Interest rates vary from 6-8% depending upon need and eligibility of the borrower. Terms may vary from three to ten years.
For more information, contact:
Economic Development and Industrial Corporation
39 Central Square
Lynn, MA 01901
Phone: (781)581-9399
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EDIC - EDA Revolving Loan Fund (RLF)
The EDA Revolving Loan program is for businesses with a net worth of not more than $2 million and less than $750,000 average net profit after taxes for the last two years.
Loan proceeds may be used acquisition of real estate, plant or equipment, furnishings construction and working capital. The EDIC established this program with grants from the U.S.Economic Development Administration to provide gap financing for small business projects $100,000 or less. EDIC, however,has assisted applicants with their equity portion on much larger projects.
Under the RLF Program, EDIC provides loans of $5,000 to $100,000 which can be used as the down payment on a larger project.
The EDIC portion of the project should be 25 % or less.
For more information, contact:
Economic Development and Industrial Corporation
39 Central Square
Lynn, MA 01901
Phone: (781)581-9399
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Macro Loan Program & Job Creation Program
The Macro Loan and Job Creation Fund was established to abate and mitigate the loss of jobs as a result of the closing of large industrial manufacturing complexes throughout the City.
Source of Funds
The money is made available through the Community Development 108 Program.
Amount of Monies
No more than $750,000 in loans will be issued in any one year.
Loan Limits
No one firm will receive a loan in excess of $400,000 at a rate of 6% at various amortization periods. Loan Approvals EDIC/Lynn will prepare a loan package for submission to the Office of Economic and Community Development. We would expect turn-around time for a loan processing to take less than 45 days. All loans would be presented to the Lynn Development Board for review and the Economic Development Committee of Lynn City Council for approval.
Eligibility
More than 50 jobs would be created or retained Funds must be used in connection with the purchase or lease of a former industrial or commercial site in excess of 50,000 sq. ft. of land or 25,000 sq. ft. of floor area. Loan amount cannot exceed 30% of the total financing package. Business must have been denied financing in the private market, or have been denied sufficient capital to satisfy their projected needs.
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Administration
EDIC will prepare loan applications. All applications will contain at the minimum the following information:
- Individual tax returns
- Information on the use of funds
- Cash flow projection on the subject/prospective business
- Personal financial statement
- Audited financial statements of the company
- Proforma balance sheet, income and expense statements
For more information, contact:
Economic Development and Industrial Corporation
39 Central Square
Lynn, MA 01901
Phone: (781)581-9399
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The Commonwealth of Massachusetts' Economic Development Incentive Program
The Commonwealth of Massachusetts' Economic Development Incentive Program (EDIP) is deigned to stimulate job creation, attract new business to the City, and encourage existing businesses to expand. It attempts to accomplish this by offering tax incentives to businesses located in areas that have received the appropriate state designations by the Economic Assistance Coordinating Council (EACC) Businesses seeking to locate, relocate, or expand in the city and meeting specific job creation and investment criteria may be eligible for Certified Project status which will offer the following benefits:
- 5% State Investment Tax Credit
- 10% Abandoned Building Tax Deduction
- Priority for state capital funding
- Tax Benefits (Tax Increment Financing)
The EDIC is responsible for the intake of project proposals and guide these proposals through the review process. The review process will be as following:
- Present proposal to the Lynn Development Board to confirm the project's consistency with the city's overall goals and plans for the project site.
- Proposal reviewed by the EDIC to review the eligibility for the Commonwealth's EDIP. In order to be eligible, the project must meet one of the following criteria:
- The project must show the creation of 25 or more jobs and; it must have an investment exceeding $750,000.
- The project involves the rehabilitation of a vacant industrialor commercial building, which has been taken by the City of Lynn through foreclosure for nonpayment of taxes.
- Project developer and EDIC staff prepare project certification forms and develop a tax increment plan to be presented to the City of Lynn's Chief Assessor, Chief Financial Officer, City Council, and the Massachusetts Economic Assistance Coordinating Council for final approval.
The City of Lynn expects its review and determination procedure to be complete within 60 days of receipt of the proposal and anticipates a 60-day approval timeframe from the EACC.
For more information, contact:
Economic Development and Industrial Corporation
39 Central Square
Lynn, MA 01901
Phone: (781)581-9399
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