Needham Bank to Support Small Business Lending in Collaboration with Local Organization

NEEDHAM, MA (February 10, 2016) --- Needham Bank recently teamed up with five other banks as part of a unique funding effort driven by a local organization dedicated to community development. 

The South Middlesex Opportunity Council (SMOC) recognized the need of finding alternative funding methods for small businesses that oftentimes do not meet traditional loan application criteria and solicited the assistance of local financial institutions to implement a lending fund to serve this specific growing need.

Scheduled to launch on February 16th, the $1 million fund was created through participation by Needham Bank, Middlesex Savings, MutualOne Bank, Commerce Bank, Country Savings Bank and Southbridge Savings Bank. Intended to provide assistance to local business owners of smaller shops that may not have the credit history or revenue stream to qualify for a standard loan, the fund’s goal closely aligns with Needham Bank’s dedication to the Shop Local movement. 

“We’re proud to collaborate with the South Middlesex Opportunity Council to provide more opportunities for our local business owners,” said Mark Whalen, CEO of Needham Bank. “By supporting our friends and neighbors and their professional goals, not only are we investing in the people we believe in, we are investing in the types of businesses that make each of our communities vibrant places to live and work.” 

As the fund is launched, loans will be limited to $12,500 for startup businesses and $25,000 for existing businesses, with terms ranging from three to five years. Rates will vary between 8 and 10 percent, with a 12 percent cap. While higher than a standard bank loan, these rates remain lower than most interest rates on business credit cards, empowering the borrower to ultimately achieve self-sufficiency once their business becomes more established.

Members of SMOC will assist borrowers through the application process and final approvals will be made by a majority vote from the fund’s committee, a group of officials from the participating financial institutions as well as members of the community. Once approved, business owners will be required to attend educational workshops and quarterly meetings with SMOC staff members who will be available as resources for one-on-one counseling. More information about the South Middlesex Opportunity Council (SMOC) can be found at www.smoc.org.

About Needham Bank

Needham Bank, headquartered at 1063 Great Plain Ave. in Needham, MA, is the quintessential community bank, serving Boston and its neighboring communities continuously since 1892. Needham Bank represents the evolution of community banking™, offering the latest financial products and technologies, while maintaining an unwavering commitment to the communities served. For more information please visit NeedhamBank.com. Needham Bank is a member of FDIC and SIF.