Representatives from HarborOne Bank, NeighborWorks Housing Solutions, Rockland Trust, North Easton Savings Bank and Eastern Bank present a $1 million check to found the Brockton Venture Fund at Elvera's Cafe in Brockton on March 5, 2020. Photo by Greg M. Cooper | Courtesy of Eastern Bank)
HarborOne Bank and four other local financial institutions have committed $1 million to a new fund that will provide low-interest loans to help businesses locate, expand and hire in Brockton.
“New business needs affordable capital, and it is crucial for the city and the region that we do everything in our power to support growth that adds jobs, taxes and spending to help Brockton thrive,” James Blake, CEO of HarborOne, said in a statement. “These institutions understand that providing funding to small businesses to locate in Brockton or to grow here helps all of us.”
The Brockton Venture Fund was created as a collaboration between the Brockton Partnership and NeighborWorks Housing Solutions and launched on March 5 with commitments from five institutions.
HarborOne Bank, Eastern Bank, Rockland Trust Bank, Crescent Credit Union and North Easton Savings make up the consortium that will provide funding for the low-interest loan pool. Loans of up to $50,000 will be provided along with small business education training for eligible borrowers.
Leaders of each financial institution will determine eligible small business loan recipients, and the loans will be administered by NeighborWorks Housing Solutions.
HarborOne is providing $300,000 to the fund with Eastern Bank and Rockland Trust each providing $250,000. Crescent Credit Union and North Easton Savings Bank are each contributing $100,000 to the fund.
Interest rate pricing is targeted at prime plus 3 percent (or the FHLB equivalent) fixed at the time of closing for durations of three, five or seven years. Advances under the program will not be subject to any prepayment fees.
The Brockton Venture Fund is for new entrepreneurs who have been using their own savings or personal financial resources to set up and operate their business. The fund will provide a new resource to help them grow.
Successful applicants must be for-profit businesses or start-ups located in the Brockton marketplace and meet the qualifications for a small business under the regulations of the U.S. Small Business Administration Standards. Nonprofit organizations are not eligible.
The Brockton Venture Fund consortium will select applicants with the best up-side for job growth that will stimulate housing, neighborhood revitalization and increased spending on other services in the city. And the program will seek out businesses that are woman-, minority- or veteran-owned.
“Brockton has everything it needs to grow and thrive: Three commuter rail stations, a ready workforce and ample housing and business building stock,” Gerry Nadeau, president and chief commercial banking officer of Rockland Trust, said in a statement. “The Brockton Venture Fund is a shot in the arm for entrepreneurs who want to make a commitment to helping this city grow.”
