Bay Colony Development Corp. is a Certified Development Company (CDC) whose purpose is to stimulate economic development through the creation and preservation of jobs by providing healthy companies with fixed asset financing at affordable rates and reasonable terms. Bay Colony has funded quality loans in excess of $350 million to well over 700 growing businesses throughout Massachusetts, Rhode Island, New Hampshire, and Vermont representing nearly one billion dollars in total project financing. Bay Colony Development Corp . is a private non-profit corporation. Our twenty five members are drawn from industry, banking, economic development, real estate, government, and management consulting. These different sectors are also represented on our Board of Trustees. By working with bank loan officers, accountants, real estate brokers, attorneys and their clients to identify and structure the most beneficial financing program appropriate to the needs of the project, Bay Colony has grown to be one of the larger certified development companies in the nation. Bay Colony was formed in 1981 and was one of the first SBA Accredited Lenders (1991) and Priority Lenders (1996) in the country. In addition to providing Section 504 Loan Program financing, Bay Colony works with lending institutions and the SBA to assist small businesses with loan guarantees under the Section 7(a) Guaranteed Loan Program. Maximum debenture The size of your project is not limited, but most projects, when considered in their entirety fall between $250,000 and $10,000,000. The maximum SBA debenture varies between $1,500,000 and $4,000,000 depending on your industry type and certain public policy goals. The maximum debenture for Small Manufacturers is $4.0 million. A Small Manufacturer is defined as a small business concern that has: Its primary business classified in sector 31, 32, or 33 of the North American Industrial Classification System (NAICS); and all of its production facilities located in the United States. What funds may be used for Proceeds from 504 loans must be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing machinery and equipment. The 504 Program cannot generally be used for working capital or inventory, consolidating or repaying debt, or refinancing. Terms and interest rates The fixed interest rate on a 504 loans is established at an increment above the current market rate (at the date the debenture is sold) for five year and 10 year U.S. Treasury issues. Maturities of 10 years (Machinery and equipment) and 20 (real estate) years are available for 504 financing.
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