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.
HOW DOES IT WORK?
The Massachusetts Small Business Growth Fund supports the expansion and resiliency of businesses owned by entrepreneurs of color 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
Create and retain sustainable jobs
Build a track record of success for small businesses 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 entrepreneurs of color including Black, LatinX, Indigenous persons, or members of other historically under-resourced groups
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 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: https://www.lisc.org/covid-19/covid-resources/ for the latest resources available to nonprofit organizations and individuals.
“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)
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 www.adviserinfo.sec.gov 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.