In 2010, Governor Deval Patrick signed into law an economic development bill designed to help small businesses create jobs, in part by providing greater access to capital through the creation of the Massachusetts Growth Capital Corporation. New capital of $35,000,000 was provided. Formation of MGCC involved consolidation of the Massachusetts Community Development Finance Corporation (CDFC) and the Economic Stabilization Trust (EST).
The Mission of the Massachusetts Growth Capital Corporation is to create and preserve jobs at small businesses, women and minority owned businesses, and to promote economic development in underserved, gateway municipalities and low and moderate income communities.
MGCC provides a centralized resource at the state level that offers working capital, loan guarantees, and targeted technical assistance to solve specific financial and operational problems. MGCC will provide 50 % of the cost of such assistance while the company being assisted will invest the other 50%.
MGCC will build on the work of its predecessor agencies by working with traditional financial institutions to make “un-bankable” loans bankable, by working with community development corporations and other non-profits to provide financing for job-producing projects, and by assisting a wide range of small businesses to find the growth capital they require. MGCC will seek to assist manufacturers that are expanding, other growth sectors and small businesses in our older Gateway Cities.