Massachusetts Growth Capital Corp. (MGCC)will loan $1 million to Gloucester Engineering Co. to assist the company in securing letters of credit to purchase materials.

Gloucester Engineering manufactures equipment used to produce plastic bags, foam and sheet extrusion, blown and cast film and extrusion coating. It came out of bankruptcy in 2010 and New York private equity firm Blue Wolf Capital Partners is now a majority stakeholder in the company.

More than 65 percent of the company’s products are exported.

"The partnership between MGCC, Blue Wolf and Gloucester Engineering is the best example of public and private sector collaboration to benefit a mainstay of the Massachusetts manufacturing economy," said Michael Ranson, a partner at Blue Wolf.

MGCC provides capital to small businesses, women- and minority-owned businesses and local development efforts in order to promote job creation.