MFTP Financing Options
Seeds of Change, 2019 awardee
Financing Products:
The MFTP provides flexible, customized financing for costs associated with opening or expanding eligible food-access businesses. The amount and type of financing offered depends on the availability of funds within the program at the time of application, the need of the borrower, and the size and expected impact of the project.
Financing packages may include loans, grants, and other funding tools. Decisions are made on a case-by-case basis to appropriately meet the needs of each project. Applications deemed eligible will be underwritten and assessed for reasonableness of projections, capacity to adequately service debt payments, and collateral. The CDFI Administrators are responsible for the credit analysis and final underwriting decisions of the MFTP.
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Loans from $15,000 to $300,000 (administrators may have access to additional funds to supplement financing packages)
Collateral availability, which may include business and/or personal assets and/or guarantees
Three years of operating history is preferred. Start-up financing may be considered when the owner or management team has strong industry experience
Profitable or can demonstrate a path to profitability within 18 months
Strong, experienced management team
Able to provide projections for at least three years including income statements, balance sheets, and cash flows
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Grant amounts from $5,000 to $25,000. Grants at the top of this range are intended to be used in conjunction with a loan from the Mass Food Trust Program. Please see the table below for details. In the case of large projects (i.e. a new grocery store), larger grants may be considered on a case-by-case basis
Three years of operating history is preferred—start-up financing may be considered when the owner or management team has strong industry experience
Profitable or can demonstrate a path to profitability within 18 months
Strong, experienced management team
The following table provides a general guideline for how grant amounts align with loan request sizes. Exceptions may be considered based on the project's impact on addressing community food insecurity.
| Maximum loan range | Average maximum grant |
|---|---|
| 0 | $12,500 |
| Up to $25,000 | $16,000 |
| Up to $50,000 | $19,000 |
| Up to $75,000 | $22,000 |
| $100,000 and up | $25,000 |
Other considerations for determining grant amount include:
The applicant’s household income and debt capacity
The uses of the funds and their impact on the community
How a grant might advance MFTP’s equity goals