Bay Colony Development Corp.

Bay Colony Development Corp. is a nonprofit lender in Waltham that originates SBA 504 loans for owner-occupied small businesses across New England. Operating as a Certified Development Company under the U.S. Small Business Administration, it provides long-term, fixed-rate financing to buy or refinance major fixed assets such as land, buildings, machinery and equipment. Its purpose is to contribute to the economic development of local communities.

A typical 504 project pairs a conventional bank loan covering half the cost, a Bay Colony loan covering up to 40 percent at a below-market fixed rate for 10, 20 or 25 years, and at least 10 percent equity from the business. Bay Colony works with the SBA and private lenders, mostly banks, and its business development officers help owners check eligibility and structure deals. Recent loans have helped businesses from Brockton and Worcester to Rhode Island, Connecticut and New Hampshire.

What to Know

• The lender serves Massachusetts, New Hampshire, Vermont, Connecticut and Rhode Island.
• The 504 Debt Refinancing Program can refinance existing commercial debt for businesses at least two years old.
• Bay Colony says 98 percent of New England businesses meet basic SBA 504 eligibility.
• Monthly summaries of funded loans report the number of jobs each round of projects will create.