PATRICK-MURRAY ADMINISTRATION ANNOUNCES SUPPORT FOR BILLERICA PROJECTS THROUGH MASS. GROWTH CAPITAL

PATRICK-MURRAY ADMINISTRATION ANNOUNCES SUPPORT FOR BILLERICA PROJECTS THROUGH MASS. GROWTH CAPITAL CORPORATION

Newly created MGCC to provide capital and advice for small businesses to create new jobs statewide

BILLERICA - Friday, October 22, 2010 - Continuing the Patrick-Murray Administration's commitment to supporting small businesses, long-term economic growth and streamlining government services, Lieutenant Governor Timothy P. Murray today announced that New England Wheels (NEW) and Palace Manufacturing Corporation in Billerica will receive financing through the newly created Massachusetts Growth Capital Corporation (MGCC). "From day one we have been focused on putting people to work and managing state funds efficiently," said Governor Deval Patrick. "The MGCC provides us with a tool to make timely investments in small businesses that will unlock new jobs and help our economy on its continued recovery." "The creation of the Massachusetts Growth Capital Corporation will allow us to support job creation and address the needs of small businesses across the Commonwealth," said Lieutenant Governor Timothy Murray. "Our administration is proud with New

England Wheels and Palace Manufacturing Corporation as we work together to move the Commonwealth forward."

The MGCC will provide New England Wheels with $100,000 to support various business growth initiatives. The company is the single largest mobility van converter in the Northeast, and produces an extensive line of raised roof wheelchair accessible vans, paratransit vehicles, multi-passenger shuttle vans and executive limousine vans all based on custom conversions of Ford E-Series van chassis. New England Wheels originally approached the state's Economic Stabilization Trust (EST) two years ago to request assistance in obtaining full-ownership of the company, for which it was granted $400,000 in financing. These funds allowed the company to continue its operations in Billerica and retain its staff. Today's announcement will allow New England Wheels to expand its operations. The company has been located in Billerica since 1981, and currently employs 40 people. "Thanks to this financing from the Massachusetts Growth Capital Corporation, New England Wheels now has the capital necessary to sustain its growth and to make much needed improvements to the company's infrastructure," said Paul LaRose, President and owner of New England Wheels. "At a time when financing still remains difficult to attain, I'd like to thank the Patrick-Murray Administration for its commitment to supporting small Massachusetts business through the MGCC."

The Patrick-Murray Administration also announced the MGCC has closed financing with Palace Manufacturing Corporation. Palace was awarded $200,000 in funds that allowed the company to acquire a precision sheet metal operation and relocate its operations into a larger facility. By adding these new capabilities, Palace will be able to better service local high tech companies with integrated solutions. The woman-owned company, which focuses on precision manufacturing of technical parts for a wide range of industries, was opened as a machine shop in 1992 and was acquired by the current owners in January 2006. Palace currently employs over 20 people. "This financing from Mass Growth Capital Corporation will allow Palace Manufacturing to add precision sheet metal capability to our current precision machining capability. This will allow us to better serve the high tech companies that are concentrated in this area," said Clay Lennartz, Vice President of Sales & Engineering at Palace Manufacturing. "By helping other local companies achieve their goals, we expect to add even more capabilities and capacity to our organization. I thank the Patrick-Murray Administration for its continued support to small businesses like ours."

The creation and $35 million capitalization of the MGCC was formed to serve as a one-stop resource for small businesses seeking capital and advice. By consolidating the Community Development Finance Corporation (CDFC) and the Economic Stabilization Trust (EST), two state entities previously responsible for debt and equity financing and business advice, businesses now have a centralized resource at the state-level that will

be able to offer working capital, loan guarantees, grants and financial guidance -- including one-on-one mentoring services.

The purpose of the MGCC is to create and preserve jobs at small businesses, women and minority owned businesses, and promote economic development in underserved, gateway municipalities and low- and moderate-income communities. "We are excited to join Secretary Bialecki and the Patrick-Murray Administration in celebrating these grants to New England Wheels and Palace Manufacturing," said John Curran, Town Administrator for Billerica. "It is critical in these times for the local and state officials to have a shared vision of promoting economic development and job creation across the Commonwealth. Today, we celebrate that shared vision being realized in the Town of Billerica."

In August, as part of the Administration's efforts to promote job growth and long-term economic recovery, the Governor signed economic development legislation designed to help small businesses create jobs by providing access to capital through the MGCC, streamlining the Commonwealth's economic development activities and agencies, providing more transparent and equitable bond financing terms for educational and health care facilities, and approving a sales tax holiday for retailers and consumers.

Capitalization for the MGCC came from a $20 million capital bond authorization and through a $15 million transfer from MassDevelopment's Emerging Technology Fund. This funding will allow MGCC to continue its revolving loan fund program, expand its annual loan volume, and provide technical assistance to small businesses. The MGCC will have broad authority to use its resources to leverage private capital for small businesses, including loan guarantees.

Learn more about how the Patrick-Murray Administration's agenda has led Massachusetts out of a global recession faster and stronger than the rest of the nation here.

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