Massachusetts Banking Partners

Address: One Eastern Place, EP4-20
City: Lynn
State: MA
Zip: 01901-1508

Geographic Service Area: Eastern Massachusetts (generally within Route 128)

Name of Small Business Product: Eastern Bank Community Partners Small Business Loan Program.

Description of Product:
Through the Community Partners Small Business Loan Program, Eastern Bank provides reduced-cost loans, flexible underwriting and excellent customer service to small businesses within its lending footprint. The Loan Program is designed to improve access to financing by very small businesses. These small businesses generally include businesses with 20 or fewer employees that are located in a low- or moderate-income census tract. These businesses will also be receiving one-on-one technical assistance and training by small business assistance providers. The goal of the Program is to improve access to reduced cost loans for small businesses that may have difficulty obtaining financing from traditional bank lending programs at standard rates.

Terms and Costs of Community Partners Program Loans:

• Minimum loan size is generally $10,000. The Bank, at its discretion, will consider loans as small as $5,000. The maximum loan size (aggregate limit) shall not exceed $50,000.
• Interest rates for the small business loans are at a below-market rate.* For variable rate loans, the rate is the Bank’s Base Rate +.25%. * For fixed-rate loans, the rate will be the Bank’s cost of funds +2.25%. The borrower is required to have an account at the Bank.
• The Bank may require additional collateral, or an enhancement of the loan under a U.S. Small Business Administration (SBA) loan guarantee program, enrollment in the Massachusetts Capital Access Program (Mass Cap), or another guarantee program. Interest rates for these loans will be at a below-market rate as described above. The interest rate for SBA loans will be based on the Wall Street Journal Prime Rate.
• The term of the loan will be determined by the type of loan. For example, lines of credit will be underwritten on a demand basis. Term loans are available for up to five years. Longer term loans are available with an enhancement on a limited basis.
• No points or fees are charged. Typical fees that are waived under this program include the Bank’s activation fee (generally $150 minimum).
• The borrower will be responsible for paying all of the Bank’s third party costs, such as legal fees. Other common third party fees include UCC search and filing fees and SBA or MassCap fees.

*Interest rates are subject to change at the Bank’s discretion.

Technical Assistance Partners:
Eastern Bank works with not-for-profit intermediaries to assist small business owners through the financing process from loan application through closing. Community partner intermediaries may include community development corporations, other non-profit training and counseling organizations, and government agencies or department that support neighborhood and economic development. Eastern Bank would agree to use established Technical Assistance partners contained in an list found on www.mass.gov/bizteam. The Technical Assistance partners will need to provide a referral to the Bank in order to qualify the prospect for participation in the Community Partners Small Business Loan Program.

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