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Massachusetts Small Business Growth Fund

Massachusetts Small Business Growth Fund

Entrepreneurs of color in Massachusetts have an unmet capital demand estimated at $574 million annually.  

LISC's entrepreneur-friendly Massachusetts Small Business Growth Fund is critically needed to fill gaps in capital access.
LISC Local Initiatives Support Corporation


The Massachusetts Small Business Growth Fund supports the expansion and resiliency of businesses owned by under resourced entrepreneurs through patient equity-like investments designed to feel like friends and family capital.

What does the fund provide?

The Massachusetts Small Business Growth Fund provides growth capital to small businesses. Growth Capital is an innovative financing product that gives business owners the time they need to invest in and stabilize their companies. Unlike loan products, growth capital does not have fixed repayment terms; instead it's designed as a long-term investment where businesses repay only when they are successful in growing their revenue.
The Massachusetts Small Business Growth Fund aims to:
  • Build wealth for businesses owned by entrepreneurs of color and other emerging entrepreneurs lacking access to traditional capital 
  • Create and retain sustainable jobs
  • Build a track record of success for small business owners to attract future investment dollars
  • Offer flexible re-payment terms based on revenue and mutually agreed-upon targets

How do we invest?

LISC makes growth capital investments in your company ranging from $50,000 to a maximum of $250,000 with flexible repayment terms.
Small businesses may use these funds to support growth and expansion plans such as: 
  • Plans to expand into new geographies
  • Plans to diversify into new product lines, business lines, or business strategies 
  • Plans to enter complementary industries with high barriers to entry, better profit margins, and higher start-up costs 

Who is Eligible?

The Massachusetts Small Business Growth Fund focuses on small businesses that are:  
  • Businesses owned by members of historically under resourced groups and entrepreneurs lacking access to traditional capital
  • Earning annual revenues above $250,000 and below $3,000,000   
  • In operation for at least two years, with an ability to deploy capital toward business improvement and growth   
  • Based in the South Coast region of Massachusetts
  • Located in an economically disadvantaged community 
* Sole proprietors and non-profit organizations are ineligible for this particular program.  Be sure to check LISC’s COVID-19 Resource Page  for the latest resources available to nonprofit organizations and individuals.   

Interested in Learning More?

  • How does the initiative help small businesses?
    This initiative is an unsecured financing program focusing on diverse owned businesses. The funds enable business owners to cover costs related to business growth and expansion plans or necessary technology, infrastructure, insurance, or certification expenditures that will help stabilize the business and create opportunity for additional revenue streams.
  • What type of financial resources does the initiative offer?
    The initiative aims to provide growth capital ranging from $50,000 to $250,000 in size. This funding is similar to an equity investment, but without the owner surrendering control or an ownership stake in their business.Growth Capital is a patient, low cost, revenue-based financing product designed to allow business owners the time they need to invest in and stabilize their business before repayment begins. Unlike a traditional loan product, growth capital does not have fixed repayment terms. Instead, business owners begin repaying a percentage of their revenue each quarter, once their business plan proves successful. If a business does not succeed in growing, growth capital will not need to be repaid. By successfully taking and repaying a growth capital investment from LISC, business owners will allow LISC to invest in even more BIPOC-owned community businesses.
  • Who is eligible for the program?
    This program is open to companies in the state of Colorado. Additionally, focus will be given to businesses with: Annual revenues above $250,000 and below $3,000,000 Minority-owned businesses 2 years or more in business Sole proprietors and nonprofit organizations are not eligible for the program.
  • How is this financing structured?
    LISC will fully fund a growth or expansion plan, up to $250,000. The business will have a minimum of one year before repayment begins. After one year, the investment will start to repay one quarter after the business hits pre-agreed revenue targets. The business will pay a share of its revenue, as long as revenues are greater than revenues at time LISC provides funding plus the LISC investment amount. The revenue share split will be based on a three-year par recovery of the investment. However, the business will make payments to LISC through the earlier to occur of (x) full repayment to LISC of its revenue share or (y) seven years from LISC’s investment. After the end of the investment term, the business will not be required to make further payments to LISC. The revenue share will be capped at a multiple of 1.5X LISC’s original investment.
  • How can a small business determine if they are a good candidate for this initiative?
    All interested small businesses should assess their own eligibility by thoroughly reviewing the full FAQ and program description, including the eligibility requirements. If eligible, interested businesses may reach out to to enquire about next steps.
  • If a business expressed interest in a previous round but was not selected, can the same business reach out again?
    A business may reach out again after six months have passed to determine if it is a good candidate.
  • Can a business owner express interest in this initiative for multiple businesses?
    Business owners may express interest for just one business at a time and must be at least 18 years of age to inquire about participating.
  • How will a business be contacted if selected to receive growth capital?
    LISC will primarily utilize email to communicate with all prospects. Be sure to check your email regularly, including spam folders. Email updates will come from the LISC Strategic Investments Growth Capital email address:
  • What documentation will be required?
    Businesses seeking growth capital will need to be prepared to submit at minimum: Business/growth plan that outlines plans for expansion, job creation and prospective supplier contracts Business and Owner Tax Returns Interim Business and Owner Financial Statements (P&L and Balance Sheet) Business Debt Schedule Articles of Incorporation (Corporation) or Organization (LLC) Certificate of Good Standing Financing will be made to qualified businesses, and eligibility is based on accurate and complete submissions. LISC may conduct a background search at our expense and request the submission of additional information to include verification information such as date of birth, SSN, TIN/ITIN, EIN, W-9 and appropriate banking information in order to receive funds.
  • What additional monitoring and reporting will be required?
    LISC will monitor and conduct evaluation activity and program reports of any funds issued throughout the program.  This will involve a review of quantitative or qualitative data needed to understand the impact of the initiative.  Furthermore, current directors, officers, employees and contractors of LISC and such individuals' family members (spouse, parents, children, grandchildren, great-grandchildren, and spouses of children, grandchildren, and great-grandchildren) are not eligible to apply or seek an award.  In addition to verifying there is no such conflict with LISC, prospective program participants will need to similarly establish that s/he does not have a conflict with any donors involved in that particular pool. The list of donors connected to a particular round of resources will be disclosed explicitly for response by finalists.
  • What other supports for small businesses does LISC provide?
    LISC is committed to sharing resources and services that support small businesses throughout the country. Visit to learn more.
  • How do I know if the information I submit is secure?
    Information provided through the online intake process is the responsibility of each business owner. Information submitted to LISC will remain confidential to the general public and any fellow applicants. Applicants will not hold LISC, its affiliates, members, partners, and staff liable for any losses, damages, costs, or expenses, of any kind relating to the use or the adequacy, accuracy, or completeness of any information loaded in the form. See LISC's Privacy Policy for more details. Data entered online utilizes a secure form via Form Assembly. More info.
  • Have additional questions?
    LISC monitors inquiries sent to and will post answers to new frequently asked questions (FAQ) on this page in an effort to support transparency and equal access to information for all interested businesses. Business candidates are encouraged to check the FAQ regularly for updates.

“Apart from just being the right thing to do, ensuring that all entrepreneurs have equitable access to capital to support their businesses also helps to propel broader economic growth, generate new jobs and drive innovation statewide.”

The Color of the Capital Gap, Increasing Capital Access for

Entrepreneurs of Color in Massachusetts - 

A report from Boston Indicators and the Boston Foundation in partnership with

the Coalition for an Equitable Economy (May 2021)

Supported by:

BayCoast Bank
Boston Children's Hospital
Dana Farber Cancer Institute
LISC Local Initiatives Support Corporation
Massachusetts Small Business Growth Fund

The investment pools sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed by LISC Fund Management, which is a wholly-owned subsidiary of LISC.  LISC Fund Management is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”).  Registration of an investment adviser with the SEC does not imply any level of skill or training. Please visit the SEC’s website at to see LISC Fund Management’s Form ADV, which contains important disclosures, including further disclosures about material conflicts of interest, risks, and limitations associated with LISC Fund Management.

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