Needham Bank's Ashland branch in 2019. Courtesy photo/ File

Needham Bank and the town of Ashland have joined forces to spur economic growth and job creation in Ashland’s business districts.

The Economic Development Loan Program is an interest-free loan fund that will allow companies to secure financing for up to two years when banking with Needham Bank, which opened a branch on Front Street in Ashland in 2015. The funds are to be used exclusively for the development and expansion of businesses in Ashland.

Established through a Town Meeting vote and a special act of the legislature in 2018, the program is considered the first of its kind for a municipality in the commonwealth. The town of Ashland will administer the relationship with potential borrowers and members of the town’s business community through its Economic Development Office, with Needham Bank providing the loan underwriting and loan capital.

“Ashland’s leadership is to be commended for its vision and foresight,” Joseph Campanelli, Needham Bank’s president and CEO, said in a statement. “Creating vibrant, sustainable communities aligns perfectly with the values we live by. Needham Bank is proud to be partnered with the town on this program and we encourage interested parties to participate.”

The loans can be used for leasehold improvements, operating capital, facade and building renovation, landscape and property improvements, machinery and equipment purchases and soft cost expenses related to real estate development.

The town is targeting specific sectors to apply for participation including medical, manufacturing, breweries and restaurants, engineering and professional services.

While no total dollar figure for the loan fund was released, the program overall will have an initial cap of $50,000 accrued imputed interest. The maximum loan for any one individual under the program is set at $250,000. Imputed interest costs will be absorbed 60 percent by the town and 40 percent by the bank.

Potential borrowers must be creditworthy and may be required to receive financing through Needham Bank’s SBA program, all subject to the bank’s underwriting criteria for similar loans.

“This Economic Development Program is expected to result in projects and activities that will contribute to the revitalization of our business community,” Ashland Town Manager Michael Herbert said in a statement. “Our goal is to create and retain jobs in our town, while also expanding our tax base and providing greater opportunities for our  people. We are thrilled that Needham Bank shares this vision and has agreed to partner with us.”

Needham Bank and Town of Ashland Form New Loan Program to Spur Economic Growth

by Banker & Tradesman time to read: 2 min
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