Bill > S815

This bill establishes the Massachusetts Loan Loss Guarantee Program for Community Development Financial Institutions (CDFIs), a state-backed initiative designed to support small businesses and underserved communities. The program will provide loan guarantees covering up to 80% of eligible loan losses for CDFIs, with a priority on supporting microbusinesses, minority-owned businesses, worker-owned businesses, women-owned businesses, and enterprises serving low-income communities and Gateway Cities. The program will be financially supported through state appropriations, fees, private contributions, philanthropic grants, and other funding sources. An extensive advisory board composed of representatives from financial institutions, community development organizations, and government agencies will oversee the program's implementation and strategic direction. The agency administering the program will be responsible for developing loan eligibility criteria, monitoring financial performance, and submitting annual reports to the state legislature. Importantly, the bill specifies that the program's liabilities do not constitute a debt or pledge of the state's faith and credit, and the program will also provide technical assistance and training to participating CDFIs to improve their lending practices and risk management.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/S815