Manufacturers Financing Program

Manufacturers Financing Program
HEDIC’s Manufacturers Financing Program offers gap co-lending and, in some cases, direct financing for eligible Holyoke manufacturers that have good credit and a strong business plan. These loans are designed to fill a lending gap and help to stimulate business growth.

Program Description
Eligible uses include:
– Land or building acquisition
– Purchase of machinery and equipment
– New construction or renovation
– Leasehold improvements
– Working capital (in limited instances)
– Business succession expenses

Amount: $25K to $100K or up to 30% of the entire loan whichever is less for co-lender loans
Term: Up to 7 years
Interest Rates: 50% of prime lending rate

Collateral: Sufficient security interest in the asset being financed, lien on business
assets, and personal guaranty
Employment: Commitment to employee retention and creation of new employment
opportunities for Holyoke residents.
For program details and a Pre-application form:
-Download the Policies and Procedures for the Manufacturers Financing Program
here: HEDIC Manufacturers Financing Program – Overview, Policies and Procedures (June 2024)
– Access the Pre-application form here: Pre-application Form

Example:
Holyoke Manufacturing Corp. seeks to acquire a processing machine that costs $100K.
Bank financing will provide $70K. The Manufacturers Financing Program can provide up
to the remaining $30K to a qualified business so that it can purchase the machine.
HEDIC would be subordinate to the bank for collateral. In some instances, the program
can provide the entire amount if the company can demonstrate the need, provide
sufficient collateral that there is a benefit to the City of Holyoke.
General Eligibility Requirements:
– Open to Holyoke businesses
– Must be a manufacturer or maker type business.
– Have been operating for 3 years.
– Must provide financial documentation satisfactory to HEDIC.
In cases where a potential borrower operates a business that does not meet one or
more of the qualifications above, HEDIC staff will consider the circumstances and may
suggest alternatives or decide as to whether the business can reasonably be
considered eligible to apply.