Since 1975, the Massachusetts Community Development Finance Corporation, a quasi-public investment corporation, has provided financing for small businesses, real estate projects, and community development programs throughout the Commonwealth's low and moderate income communities. As an economic development organization, CDFC requires that projects meet CDFC's investment standards, and assists in the creation of jobs, business opportunities, affordable housing, or development of the local business district. CDFC structures its investments to encourage private financial institutions to participate. CDFC is governed by a nine-member Board of Directors appointed by the Governor, representing government, business, organized labor and Community Development Corporations. CDFC seeks to provide financing for firms unable to meet their capital requirements in the traditional markets.
Funds are available for working capital, and expansion or acquisition costs.
Technical assistance may be provided. Interest rates are fixed for the term of the loan. CDFC may subordinate its debt to secure the participation of other public or private lenders if there is adequate collateral. A CDC must be the developer or the primary development partner. Projects must offer a clear public benefit, such as the creation of affordable housing, revitalization of blighted commercial properties or job creation, as well as conform to all applicable environmental, zoning, and building requirements.