Massachusetts Banking Partners

Address: 180 Massachusetts Avenue
City: Arlington
State: MA
Zip: 02474

Geographic Service Area: Communities of Arlington, Belmont, Cambridge, Lexington, Medford and Somerville

Name of Small Business Product: Leader Bank Community Partners Small Business Loan Program

Description of Product:

• Businesses which are located in the above designated geographic service area which are eligible for the program may be: preserving or creating new jobs that are available to lower income individuals; located in low- and moderate-income areas; or located in neighborhoods targeted for economic development by federal, state or local government. The goals of the program are to improve access to smaller-sized, reduced-cost loans for small businesses, some of which may be at an early stage or may have difficulty obtaining financing from traditional bank lending programs.
• Minimum loan size is generally $25,000.
• 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 +1.00%. For fixed rate loans, the rate will be 8.99%. The borrower will be encouraged to have a deposit account at the Bank.
• The Bank may require # additional collateral, or an enhancement of the loans under a U.S. Small Business Administration (SBA) loan guarantee program, enrollment in the Massachusetts Capital Access Program (MassCap), 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 loans will be determined by the type of the loan. For example, lines of credit are available for up to two years. 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 commitment fee (generally one point).
• # 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:
Leader 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 departments that support neighborhood and economic development.

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