MILTON BENJAMIN JR.
‘A successful tool’
Springfield-based SpringBoard Technology and Microline Inc. in Beverly are both considered success stories to Milton Benjamin Jr., president of the Massachusetts Community Development Finance Corp. With the help of financing and support from the CDFC, both companies have managed to grow and develop their business strategies in recent years.
CDFC, a quasi-state investment corporation, was created in 1975 and provides financing for small businesses, real estate projects and community development programs throughout the commonwealth’s low- and moderate-income communities.
“[The mission of CDFC is] responding to the needs of small businesses that have difficulty raising the proper level of financing through the private sector,” Benjamin said, adding that CDFC is able to offer financial tools for such companies.
Benjamin said CDFC was initially formed as a “bank” for community development corporations in the Massachusetts area. Eventually, CDFC expanded to reach small companies and real estate projects in underserved communities.
“When there was little for construction to address working capital needs, we created a successful tool to help that industry,” Benjamin said.
CDFC is periodically funded by the state. In an economic stimulus package at the end of 2003, it received funding from the commonwealth.
In 1998, CDFC made an investment in SpringBoard Technology. Benjamin said he is particularly proud of SpringBoard’s accomplishments.
“We have watched it transition through very difficult times,” Benjamin said, adding that the company is poised to do “great things.”
Tony Dolphin, chairman and chief executive officer of SpringBoard Technology, said that in the days since CDFC first invested in his company, it has grown from 50 employees to 100 and has expanded its customer base. Some of SpringBoard’s major customers include IBM and Hewlett Packard.
‘The Total Picture’
“CDFC took a very hard look at our business plan,” Dolphin said. “They look at the total picture.”
Dolphin said CDFC invested in SpringBoard because the agency viewed the company as a viable investment that could positively impact the community.
CDFC is still involved in SpringBoard’s strategic development. Dolphin said he recently met with Benjamin to discuss the company’s business plan.
Benjamin joined CDFC 15 years ago after having a career as a lawyer. He was involved in real estate transactions and insurance while working as an attorney and, during that same time, also served on many boards dealing with affordable housing. Given the opportunity to work with the Lena Park Community Development Corp., Benjamin became its general counsel. In the two years he worked with the CDC, which operates in Dorchester, Mattapan and Roxbury, Benjamin was instrumental in the rehabilitation of 290 housing units. Around that time, he was also introduced to the CDFC and soon became its vice president. He was named president six months later.
As president, Benjamin helps execute the organization’s policies. He also oversees the lending operation, which includes a portfolio and funds managed by CDFC.
“What motivates me is to see companies do well,” Benjamin said.
According to CDFC’s Web site, the organization maintains the Massachusetts Enterprise Loan Fund, which provides both term and lines-of-credit financing to established businesses to enable them to expand or retain employment for local residents. CDFC also has the Real Estate Fund, which offers short- to medium-term financing for community development corporation-developed residential, commercial and industrial real estate projects. CDFC is able to provide 20 percent of the project cost, or up to $250,000, for the financing of recoverable development expenses.
Also listed on CDFC’s Web site is the Urban Initiative Fund. It focuses on targeted urban minority communities and provides loans and technical assistance to strengthen minority-owned business firms with less than $500,000 in annual sales. It also provides loans and grants to support minority nonprofit organizations for a range of economic development and human service projects.
The Minority And Women Contractor Bond Program provides technical and financial assistance to help contractors in qualifying for surety bonds while establishing a relationship with a surety company. CDFC also can provide contractors with letters of credit, so appropriate bonds can be obtained. The bond program services are offered through a partnership with the Massachusetts Bay Transportation Authority, MassHousing and Massachusetts Port Authority.
While CDFC is intended to help communities throughout the state, Benjamin said there are targeted areas like Springfield and Worcester that receive aid before more affluent communities such as Weston and Wellesley.
“[The operation is] statewide, but we have targeted communities,” Benjamin said. “We try to stay ahead on all the information and resources and gaps in resources.”
By keeping track of those gaps, Benjamin said CDFC tries to provide financial products for companies and communities in need. He also said when companies do well, it stimulates employment in neighborhoods that need it.
While CDFC is funded periodically by the state Legislature, Benjamin said the organization works to be self-sufficient. He does credit the Legislature for its support and said he feels an obligation to put that money to work and support small businesses.
“Our mission continues to be to help small businesses,” Benjamin said.
Another small business aided by CDFC’s funding was Microline Inc., which recently repaid CDFC’s investments into the company. Pentax Corp. Microline, a medical implements manufacturing company, was acquired by Pentax Corp. in recent days.
Over the past 10 years, Microline has grown from a startup company with five employees to a 141-employee company with almost $15 million in annual revenues. The company grew with the help of CDFC’s multiple loans and equity investments.
“We saw the strength of its management, the value of the products being manufactured and the potential for significant employee growth,” Benjamin said of Microline.
Benjamin said CDFC and Microline were introduced through networks of similarly minded entities. The Salem Harbor Community Development Corp. was the sponsor of a recent event celebrating Microline’s repayment.
CDFC will be able to finance other companies with the return on the loans and investments in Microline.
Looking back on his 15 years leading CDFC, Benjamin said the organization is better poised now for success than ever before.
Jennifer Jope may be reached at jjope@thewarrengroup.com.
