Business Expansion Initiative (BEI)
BEI supports the development and expansion of the production capacity of renewable energy technology firms in Massachusetts. BEI provides secured debt capital to expansion-stage companies for new renewable energy product design and manufacturing financing. BEI loans may only be made to companies located within Massachusetts.
BEI Solicitation Highlights
Target Loan Amount: $500,000 to $3,000,000 per company
Funding Limit Requirement: BEI can fund up to 50% of capital expenses and related spending over a 24-month window; at most 75% of funding can come from public sources, including equity, debt or grant.
Use of Proceeds: Capital expenses, such as equipment, facility costs, design costs, and other manufacturing facility related expense for production of allowed renewable energy and related technologies.
Funding Instrument: Senior secured loan, with required participation of a co-lender.
Interest Rate: Per co-lender rate, with allowable discounts on MTC portion for number of employees to be hired and amount of investment made in the state.
Term and Repayment: Up to 10 year amortization, seven years or less preferred, with flexibility in amortization schedule.
Eligibility Criteria:
- Company is a private entity based in Massachusetts;
- Company must be increasing its existing workforce by at least 10%, and output capacity by at least 10%, measured in units of product.
- Company currently or intends to manufacture a product in one of the following renewable energy technologies:
- Solar photovoltaic or solar thermal electric energy
- Wind electricity
- Ocean thermal, wave, or tidal energy
- Biomass
- Hydropower
- Fuel cells
- A company is also eligible if it produces power inverters, power controls, power storage, or other equipment that is important to enabling the commercialization of renewable energy technologies.
Needs Test: Each potential borrower will be required to establish their need for the financing requested in at least one of the following ways:
- Provision of a rejection letter from one or more private-market sources of financing for expenses related to the Subject Facility;
- Provision of a letter offering financing at a rate which is uneconomical to the company for expenses at the Subject Facility, with accompanying financial analysis to demonstrate;
- Provision of an offer from at least one other state or country to provide subsidized financing to the company for the Subject Facility; or
- Provision of a detailed description of the lower costs the company would enjoy by locating or retaining the Subject Facility in a different state, combined with the estimated difference in cost the company would be subject to by locating the same facility in Massachusetts.
Application Process: BEI is accepting applications on a rolling basis. Follow link to solicitation.
Detailed BEI Information:
Official Contact:
Ian Springsteel
Massachusetts Technology Collaborative
75 North Drive - Innovation Center
Westborough, MA 01581
BEI@masstech.org
Phone: 508-870-0312 x255
Fax: 508-898-9226