A Comprehensive Review of MGCC Grants: What You Need To Know

MGCC fosters inclusive economic development in Massachusetts by providing small businesses with access to alternative financing, resources, and personalized services to create customized solutions for their unique needs. The MGCC grants program tends to meet the needs of and support small and medium-scale businesses.

Massachusetts Growth Capital Corporation (MGCC) functions as a one-stop resource for debt financing for small businesses. They have made a name for themselves in the finance sector for SME businesses.

Maybe your business is one of the businesses that applied for the MGCC Grant in the past, or you want to know more about it; whichever you are here for, you will be provided with the information needed.

We will attempt to give you a comprehensive review of the MGCC grants, from their eligibility to the payment or disbursement of the grant.

What are MGCC grants?

MGCC is a financial organization that functions as a one-stop resource for debt financing for small businesses., including issuing MGCC grants.

MGCC’s mission is to both generate and safeguard employment opportunities within small businesses, encompassing those owned by women, minorities, immigrants, and veterans.

The vision of MGCC is to ensure equal access to resources and financing for all Massachusetts small businesses and their owners.

For more than 40 years, MGCC and its predecessors have helped thousands of businesses in the Commonwealth through financing and managerial assistance, access to business resources, and individualized service to identify and structure solutions tailored to each small business.

Additionally, MGCC is dedicated to advancing economic growth across the Commonwealth, with a particular focus on addressing the unique business requirements in underserved regions, gateway cities, and communities with low to moderate income levels.

Why MGCC Grants?

Small business help comes in a variety of forms, and MGCC has a range of offerings to fit your needs.

MGCC Grants is purposed for Small Business Lending

There is a financing option available up to $1,000,000. Their experienced team will provide individualized service to identify and structure solutions for small businesses.

They also have what is called SBA Microloan Program

It is geared toward providing loans ranging from $5,000 to $50,000. MGCC is one of only two statewide intermediary lenders for the SBA’s Microloan program.

One of the benefits of MGCC is its Small Business Technical Assistance Grant Program

This competitive grant program for non-profit technical assistant providers builds operational capacity and skills to support critical services to small businesses, including education, training, and access to capital.

They also have a grant program called the CDFI & CDC Capital Match GrProgram, theram, Biz-M-Power Grant Program, and Emergency Loan Funds.

As we continue, I will explain MGCC grants and how they work.

What are the mission and Goals of MGCC?

The purpose of MGCC is to create and preserve jobs at small businesses, including those owned by women, minorities, immigrants, and veterans.

MGCC also works to promote economic development throughout the Commonwealth, with special attention paid to business needs in underserved areas, gateway cities, and low- to moderate-income communities.

The tagline and brand “Empowering Small Business” emerged from the recognition of MGCC’s positive influence on companies throughout the Commonwealth.

Small businesses hold significant economic power, particularly in terms of employment and their impact on communities.

MGCC serves as the primary resource and financial support for businesses across the state, achieving this by:

• Building operational capacity and business skills through technical assistance, education, and access to capital.
• Saving at-risk jobs and creating new employment opportunities as new or struggling businesses stabilize and grow.
• Creates public-private partnerships between the Commonwealth and a strong network of nonprofit businesses and development organizations.

The Significance of MGCC in Grant Funding

For example, the Biz-M-Power crowdfunding matching grant program provides financial aid to small businesses in Massachusetts for various purposes, including acquiring, expanding, enhancing, or leasing a facility, purchasing or leasing equipment, and addressing other capital requirements.

Qualified applicants are enabled to enhance their businesses by adopting an innovative approach to securing capital.

Through crowdfunding campaigns, these businesses engage with their local residents and stakeholders to advance projects that contribute to economic prosperity and positive change within both their businesses and communities.

The program is supported by a $7,500,000 allocation from the Commonwealth’s Operating Budget.

Types of MGCC Grants

1. Small Business Lending

MGCC believes that small businesses are instrumental in the economic vitality of Massachusetts. We specialize in lending solutions for your community’s existing small businesses to stay on track.

Providing individualized service to each client, our expert lending team seeks creative solutions by understanding a business beyond its financials. This is one of MGCC grants.

Creative Solutions

• Loan amounts range from $5,000 to $2,000,000
• Lends directly to companies and will cooperate with other funding providers
• Our financing is accompanied by managerial guidance
• We lend to most industries

2. SBA Microloan Program

If you are looking for a smaller business loan, MGCC is one of only two statewide intermediary lenders for the U.S. Small Business Administration’s (SBA) Microloan program.

The Microloan program provides financing from $5,000 to $100,000 to Massachusetts small businesses to assist with working capital, or the purchase of furniture, fixtures, supplies, materials, and/or equipment.

Eligible Businesses

• Existing businesses
• For profit businesses or not-for-profit childcare businesses
• Headquartered in Massachusetts

Requirements

• Minimum personal credit score of 575- No historical or pending charge-offs by creditors permitted or existing government liens
• 2 years tax returns; business and personal
• Lien on all business assets
• Personal guaranty (may require security)
• Certain industries are ineligible, including real estate investments

3. Small Business Technical Assistance Grant Program

The MGCC Small Business Technical Assistance Grant Program builds the operational capacity and skills of organizations that are providing technical assistance, education, and access to capital to small businesses, including many owned by women, minorities, and veterans.

The grant program strengthens ongoing business development activities in low- to moderate-income and underserved communities and in Gateway Cities across the state.

This state-funded Small Business Technical Assistance Grant Program leverages community and economic development non-profits to help small businesses create and preserve jobs.

The grants are awarded to community development corporations, chambers of commerce, and similar non-profits.

They use the funds to provide crucial services, such as technical assistance, training in business skills, and access to financing, to their local businesses.

In addition, they offer mini-grants, through their grantees, to small business owners with needs for professional, technical, and operational services.

4. CDFI & CDC Capital Match Grant Program

The funds allocated by the Commonwealth are intended to streamline the lending process for small businesses facing challenges in securing conventional forms of capital.

The goal of this grant program is to augment the influx of capital into small businesses in Massachusetts and promote their ongoing recovery, sustainability, resilience, and expansion.

Accomplished grant recipients will harness state funds in conjunction with substantial non-state funding sources to offer a wide range of loan products to small businesses.

Program Goals

This grant program aims to enhance the infusion of capital into small businesses in Massachusetts, fostering their recovery, sustainability, resilience, and growth.

By introducing a new source of matching funds for established regional certified nonprofit lenders, the program intends to strengthen the capacity of nonprofit community-based lenders to support regional business expansion.

Successful grant recipients will leverage state funds in conjunction with substantial non-state capital sources to extend direct loans to small businesses.

These successful grantees will inject capital into small businesses, stimulating job creation and positioning these businesses to become more attractive to traditional banking institutions.

In doing so, they will drive the growth of small businesses and contribute to the revitalization of their communities.

Preference will be given to organizations with diverse portfolios, especially those with an investment focus of at least 75% in businesses categorized as Women-Owned Enterprises, Minority-Owned Enterprises, LGBTQ+-Owned Enterprises, Veteran-Owned Enterprises, Disabled Individual-Owned Enterprises, Immigrant or Non-Native English-speaking Populations, Low-to-Moderate Income Entrepreneurs, and businesses located in economically disadvantaged urban or rural communities, as well as Gateway Cities.

Organizations offering multilingual services and resources will also receive special consideration.

5. Biz-M-Power Grant Program

The Biz-M-Power crowdfunding matching grant program provides financial aid to small businesses in Massachusetts for various purposes, such as acquiring, expanding, enhancing, or leasing facilities, purchasing or leasing equipment, and addressing other capital requirements.

Eligible applicants will be encouraged to pursue innovative approaches to securing capital, engaging in crowdfunding campaigns that connect them with their local residents and stakeholders to advance projects that promote economic success and transformation for their businesses and communities.

This program is supported by a $7,500,000 allocation from the Commonwealth’s Operating Budget.

Preference will be granted to small businesses owned by individuals in various categories, including those with low to moderate-income (LMI), women, minorities, immigrants, non-native English speakers, U.S. military veterans, disabled individuals, members of the LGBTQ+ community, and businesses operating in Massachusetts Gateway Cities.

6. Emergency Loan Funds

When called upon by the administration, MGCC assists small businesses with loan funds in the wake of emergencies.

Hence, MGCC is committed to providing Massachusetts with the most effective response possible to assist small businesses with loan funds in the wake of emergencies. Supporting the vitality of its communities is MGCC’s highest priority.

MGCC Grants Funding

These are a few MGCC grants and their uses:

GRANT USE:

• Acquire, expand, improve, or lease a facility; or 
• Purchase or capital lease equipment; or  
• Meet other capital needs of a business 
• Funds CANNOT be used for ongoing business operations such as payroll, benefits, buying of inventory, general working capital, reimbursements, or operational leases.

TOTAL FUNDS AVAILABLE:  Commonwealth’s Operating Budget for Fiscal Year 2021 appropriated $7,500,000 for this program.

AWARDS:  Businesses must crowdfund a minimum of $1,500 and a maximum of $20,000 to receive a 2:1 matching grant from MGCC between $3,000 and $40,000. With the combination of crowdfunding dollars and a 2:1 matching grant from MGCC, businesses can earn $60,000+ through this program. 

• Small Business Technical Assistance (SBTA) Sponsors, Trained Business Advisor, if applicable (optional) – Businesses have the option to apply with an SBTA Sponsor. SBTA Sponsors will receive $250 fee, covered by MGCC, for assisting the awardee with a successful grant match. 
   
• Patronicity Fee – Set at 5% of the crowdfunding funds raised. Additionally, there is a 2.6% plus $0.30/transaction credit card fee collected by Stripe, the payment processor used by Patronicity. Donors have the option to cover all fees at checkout, thus reducing overall fees incurred to the Project.

CROWDFUNDING: Dependent upon application approval, businesses will launch a crowdfunding campaign to reach a financial goal. Goal must be met to receive 2:1 MGCC matching grant award. If businesses raise a minimum of $1,500, MGCC will award a matching grant. 

• If a business is unable to meet its crowdfunding goal by the campaign deadline but has been able to raise a minimum of $1,500, the business will be eligible to receive a match from MGCC.
  • E.G., If you commit to fundraising $10,000 on a $30,000 total project on your application by [your campaign deadline] but are only able to raise $7,000 by the [deadline], MGCC will 2:1 match. $14,000. Businesses will be required to submit an updated budget after the campaign closes. 
  • E.G., If you commit to fundraising $10,000 on a $30,000 total project on your application by [your campaign deadline] and are able to raise $10,000 by the [deadline], MGCC will provide the 2:1 matching grant award for $20,000, bringing the total amount received by the small business to $30,000. 
  • E.G., If you commit to fundraising $10,000 on a $30,000 total project on your application by [your campaign deadline] and are able to raise $12,000 by the [deadline], MGCC will provide the 2:1 matching grant award for $20,000 grant requested in your application, bringing the total amount received by the small business to $32,000. 
  • If applicable, for awardees working with SBTA Sponsors, a $250 SBTA fee will be added to the total grant match for the grantee. MGCC will cover the $250 fee unless waived by the SBTA Sponsor.
    • E.g., Applicant’s grant match is $10,000. The grant total will be $10,250.
      • $10,000 will be disbursed to the grantee
      • $250.00 SBTA Fee, covered by MGCC, will be paid to the SBTA Sponsor

Success Stories Of MGCC Grants

These MGCC grants helped us get through the difficult times. I was definitely grateful as a veteran that we were able to get them.

Trent & Steven Kinney, Mielke Confections

The results are unbelievable – now, I’m helping many different women business owners with their crowdfunding campaign pages and helping them find success in the program.

Salimata Bangoura, Yamacu

We had the thoughts and had the plans, now how can we get the money for it? It was awesome that MGCC was there with this [program].

Jeremy Lockett, Himalayan Kitchen

Crowdfunding was just not something I had on my radar in terms of funding the business, but I chose to give it a shot. A lot of new faces were introduced through the crowdfunding campaign. And, on one cohesive page, it gave the opportunity to tell them the story around where your business is, where it’s going and what you need from your community to help get you there.

Jae’da Turner, Black Owned Bos

Who Qualifies for MGCC Grants?

Every question regarding the eligibility and requirements is made available here.

How To Write a Winning Proposal for a Business Grant

Writing a winning proposal for a business grant requires careful planning, attention to detail, and a clear understanding of the grant’s objectives and requirements. Here’s a step-by-step guide on how to write a compelling business grant proposal:

1. Research the Grant: Start by thoroughly researching the grant you’re applying for. Understand its purpose, eligibility criteria, funding amount, deadlines, and any specific guidelines or priorities the grant provider has outlined.

2. Understand Your Business Needs:

• Identify the specific needs or projects within your business that the grant will address.
• Determine how the grant aligns with your business goals and mission.

3. Create a Detailed Project Plan:

• Clearly define the project or initiative that the grant will fund.
• Outline the goals, objectives, and expected outcomes.
• Develop a timeline and budget for the project.

4. Address the Grant’s Criteria:

• Ensure that your proposal directly addresses all the criteria outlined in the grant guidelines.
• Use the same language and terminology found in the guidelines to show alignment.

5. Write a Compelling Executive Summary:

• Begin with a concise executive summary that provides an overview of your business and the project.
• Highlight the significance of the project and its potential impact.

6. Provide Background Information:

• Give a brief background of your business, including its history, mission, and achievements.
• Explain why your business is well-suited to receive the grant.

7. Describe the Project in Detail:

• Explain the project’s goals, objectives, and methods.
• Provide a timeline for implementation, highlighting key milestones.

8. Budget and Financial Information:

• Present a detailed budget that includes all project-related expenses.
• Clearly state how the grant funds will be used.
• Show how your business will cover any additional costs if the grant doesn’t fully fund the project.

9. Demonstrated Impact:

• Emphasize the positive impact the project will have on your business, the community, or the target audience.
• Use data, statistics, and success stories to support your claims.

10. Explain Sustainability:

• Describe how the project will continue to benefit your business after the grant period ends.
• Highlight your business’s commitment to the long-term success of the project.

11. Address Potential Challenges:

• Acknowledge any potential challenges or risks associated with the project.
• Explain how your business plans to mitigate these challenges.

12. Proofread and Edit:

• Carefully proofread the proposal for grammar, spelling, and formatting errors.
• Ensure that the proposal is well-organized and easy to read.

13. Include Supporting Documents:

• Attach any required supporting documents, such as financial statements, letters of support, or project plans.
• Make sure all attachments are well-organized and labeled appropriately.

14. Follow Submission Guidelines:

• Adhere to the grant provider’s submission guidelines, including the format and method of submission.
• Submit the proposal by the specified deadline.

15. Review and Revise:

• Before submitting, have someone else review your proposal for clarity and completeness.
• Make revisions based on their feedback.

16. Submit on Time:

• Submit your proposal well in advance of the deadline to avoid any last-minute issues.

Do not forget that competition for business grants can be fierce, so it’s essential to make your proposal stand out by showcasing the uniqueness of your business and the potential impact of your project.

Tailor your proposal to the specific grant and make a compelling case for why your business deserves the funding.

Conclusion

MGCC grants initiative is indeed a blessing to struggling businesses in Massachusetts. One of the highlights of the grant is that NGOs are not allowed to apply. Rather it is only made for profit-oriented businesses.

Currently, there are no loans from MGCC to small businesses. They have a whopping 6 programs in which they address many issues facing businesses to help them provide finance and sustain them as well.

So, study the above comprehensive review of MGCC Grants for SMEs.

Frequently Asked Questions

Reference

• https://www.empoweringsmallbusiness.org/about-us
• https://www.empoweringsmallbusiness.org/who-we-help

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