Economic development officials team up with local banks to propose gap financing measure
Marlborough, MA, May 06, 2015 –(PR.com)– The Marlborough Economic Development Corporation (MEDC) has submitted a proposal to the Marlborough City Council, requesting the capitalization of a Revolving Loan Fund Program to support local economic development.
The MEDC plan calls for a $100,000 appropriation from the city, which, if approved, would be supplemented through an equal public-private partnership by four local banks – St. Mary’s Credit Union, Avidia Bank, Marlborough Savings Bank and Digital Credit Union.
Each of the participating parties has so far pledged matching amounts of $50,000, bringing the loan fund’s initial total to $250,000. The long-term vision is for an additional $250,000 to be made available as needed.
The money would provide gap financing for Marlborough companies and entrepreneurs, who wish to grow their businesses and create jobs, while ultimately revitalizing neighborhoods and enhancing property values.
MEDC Executive Director Tim Cummings, who is spearheading the fund proposal, has been working with local financial institutions for over 6 months to develop the concept. He says this type of measure is one of the best ways for a city to make productive use of its scarce economic development resources.
“If it is approved, this fund would signal our commitment to the future growth of the City of Marlborough and to helping small businesses by providing an additional economic development tool,” said Cummings. “Companies that have limited access to capital could use the fund to close the gap between what they can afford to borrow on the private market and the amount they actually need to get off the ground or expand. This, in turn, would result in job creation and community improvement projects, which would benefit everyone living and working in the city.”
For a copy of the letter of support for the proposal submitted to City Council, go to:
The Marlborough Economic Development Corporation (MEDC) is the state chartered economic development corporation for the City of Marlborough, MA and represents a public-private partnership for planning. MEDC works with municipal and private investors to foster economic development, job growth and community revitalization and development. For a complete overview of MEDC, visit www.MarlboroughEDC.com.
Marlborough Economic Development Corporation