Massachusetts Gov. Charlie Baker ’s administration and the Massachusetts Growth Capital Corporation distributed the first snow storm loan fund Tuesday in an effort to help small businesses recover from loss of revenue and regain financial stability in light of the recent unprecedented winter conditions.
The loan was given to Down Home Delivery and Catering , which prepares and delivers traditional Southern food throughout Boston, said José Luis Rojas, senior loan officer for the MGCC .
The program, initially announced in a Feb. 27 release from Baker’s office, is expected to run through May 2015. In the release, Baker encouraged Massachusetts residents to continue going to their local businesses.
“As small businesses throughout Massachusetts continue to recover from extreme weather conditions that have restricted business, we are pleased to announce this low-interest loan program is available to help them regain their financial stability,” he said in the release. “While our local economies continue to bounce back, we encourage everyone to continue shopping at their local retailers, restaurants and small businesses.”
The MGCC is responsible for funding the program, approving loan proposals, collection of interest and principle payments and managing the loan portfolio, the release stated.
Rojas, the program manager for the fund, said the MGCC was the group to first have the idea for the loan and helping small businesses is simply part of the corporation’s purpose.
“We provide loans to small businesses. It’s what we do. We thought it was a good way to provide more loans to small businesses,” Rojas said. “It’s part of our mission as an organization, and we were actually the ones who proposed the loan to the government.”
Rojas said the MGCC speaks with partners across the state to determine which small businesses are eligible for the loan.
“We’re a small organization of about 15 people, so we needed to contact our partners around the state to help us find the small businesses in need and vouch for them so that they could receive a loan,” he said.
The MGCC has set aside $1 million for the loan, but they are waiting to see how many businesses will need it, he said.
“We set out $1 million, and we’re going to see just what the demand is like. If we hit the $1 million mark and we see there are still businesses in need, then we will consider increasing it,” he said. “But right now, we just hope to help small businesses with that $1 million.”
Massachusetts Lt. Gov. Karyn Polito said in the release that she is confident the local economy will recover, especially with the help from this loan.
“Our small businesses are the backbone of our economy, and it is important that we help ensure their longevity by lending a helping hand when they need it most,” Polito said in the release. “We are confident that our entire economy will continue to recover from one of the toughest winters we have seen in decades.”
Several Boston residents said they are encouraged that their local businesses will be receiving help and the support of the state.
Jill Richardson, 27, of Brighton, said she sees no drawbacks to the program and feels the MGCC is simply acting like a bank in order to help the small businesses.
“I don’t see why it’s not a good thing because businesses make a revenue, and it’s up to them if they want to take out a loan,” she said. “It’s not really charity because they’re going to be paying back loans, assumedly with interest, so it’s basically doing what a bank would do anyways.”
Hind Hubbard , 75, of Allston, said she is fed up with the bad weather and is glad that businesses are receiving some help.
“I’m very unhappy about the amount of time we’ve had to spend this year with very bad winter weather, and I’m sure the businesses are too,” she said. “I’m just hopeful that conditions improve, and I’m glad that the businesses are getting help.”
Yasmine Robinson, a senior in Boston University’s College of Communication, said it’s great for Boston to help out its small businesses, seeing how their revenue has suffered due to the snow.
“This area especially has a lot of small businesses. In this area, they get a lot of business from students, but when there was the snowstorm and everything going on, even walking by this area, they were blocked by snow, and I think it really diminished their business,” she said. “It’s really great that they’re being recognized, especially because I think small businesses really always have problems with funding, so it’s really great that Boston is representing them well.”
