Bill > H1348

This bill establishes the Massachusetts Loan Loss Guarantee Program within the Massachusetts Development Finance Agency (MassDFA) to support Community Development Financial Institutions (CDFIs) and other nonprofit lenders. The program will provide loan guarantees covering up to 80% of eligible loan losses, with a focus on prioritizing loans to microbusinesses, small businesses in low-income communities, Gateway Cities, minority-owned, worker-owned, women-owned, and socially disadvantaged businesses. The program will be funded through state appropriations, fees from participating CDFIs, private contributions, philanthropic donations, federal funding, and other revenue sources. The agency will develop loan eligibility criteria, monitor loan performance, and submit annual reports to the state legislature. A diverse advisory board will be created, including representatives from CDFIs, banks, credit unions, economic development organizations, and government agencies, to provide oversight and guidance. Importantly, the program's liabilities will not extend beyond its own funds and will not constitute a debt of the Commonwealth. The bill also includes provisions for technical assistance to help participating CDFIs improve their risk management and lending practices.

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https://malegislature.gov/Bills/194/H1348