Scaling Company Resources

Job Creation
 

Economic Development Incentive Program (EDIP)

Type: Tax Credit

Agency: Mass. Office of Business Development

The Economic Development Incentive Program is a competitive tax incentive program designed to foster full-time job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for full-time job creation, job retention (Gateway Cities Only), and private investment commitments. Projects require approval of the Massachusetts Economic Assistance Coordinating Council (EACC). The EACC is a state board comprised of public and private sector officials which reviews and makes determinations on EDIP Projects. The Board evaluates a project based on the project’s economic impact, considering such factors as industry, location, private investment, job creation and job retention. The EACC’s administrative arm is the Massachusetts Office of Business Development, whose 6 regional directors provide a centralized source of information for businesses and municipalities and can help companies applying to the program as well as other state resources.

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Local Only Incentive Programs: TIF & STA's

Type: Real Estate Tax Reduction

Agency: Municipal; Mass. Office of Business Development

Tax Incentive Financing (TIF) is a negotiated agreement between the business and the municipality. The percentage exemption applies to the incremental increase of assessed value of the property.  The business pays the full tax rate on the “base value.” The agreement can include exemptions on personal property as well. Term is a minimum of 5 years and a maximum of 20 years. The percentage of exemption may range from 5% to 100%. Special Tax Agreement (STA) is also a negotiated agreement between the business and the municipality. Current as well as future incremental real estate taxes are exempted as follows: Year 1 – 50%; Year 2 & 3 – 25%; and Year 4 & 5 – 5%. Thereafter, the business pays 100%.

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Workforce Development

 

Workforce Training Fund Program (WTFP)

Type: Grant

Agency: Commonwealth Corp.

The WTFP provides grants to MA businesses to fund training for current and newly hired employees. In order to qualify, businesses must pay into the Fund. The program is targeted to small or medium-sized businesses that would not be able to invest in improving employee skills without the WTFP. The WTFP has three programs: General Program Training Grants, Express Grant Program, and Direct Access Program as well as Technical Assistance Grants.

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General Program Training Grants

Type: Grant

Agency: Commonwealth Corp.

Open to all business sizes, this program offers businesses grants of up to $250,000 in skills training for current and newly hired workers. Employers, employer organizations, labor organizations, training providers, and a consortia of such entities are encouraged to apply. Training programs must be completed within two years and applicants can use the training provider of their choice.

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The Direct Access Program

Type: Grant

Agency: Commonwealth Corp.

The program addresses smaller-scale training needs by making training slots available free of charge to businesses that are eligible for the WTFP. Businesses should consider the pilot program when training needs cannot be easily met by a consortium or Express Program grant.

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General Program Technical Assistance Grants

Type: Grant

Agency: Commonwealth Corp.

Grants are available to organizations designing a training plan for a consortium of business for a minimum of $5,000 and maximum of $10,000.

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One-Stop Career Centers

Type: Recruiting Assistance

Agency: Mass Office of Labor and Workforce

The Commonwealth’s network of centers are capable of providing a business with:  access to qualified candidates, applicant pre-screening, posting of jobs, assistance with small and large-scale recruitment activities, help planning job fairs and testing and assessment of candidates.

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Safety Training Grant

Type: Grant

Agency: Mass. Office of Business Development

The objective of this program is to promote safe and healthy conditions in the workplace by awarding state funds to eligible applicants who submit responses designed to provide and improve safety education and training in Occupational Safety and Health to employers/employees within the Commonwealth covered by the Massachusetts Workers’ Compensation Law (M.G.L. Chapter 152). The maximum grant award per company is $25,000.

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Resilient Coders

Type: Workforce Training

Agency: Non Profit

Resilient Coders teachers young people from Boston’s underserved communities how to code and run a web development shop that employes them. Students partake in a seven week bootcamp to gain the technical skills required for coding and the soft skills needed to succeed in a job. 

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Year Up

Type: Workforce Training

Agency: Non Profit

Year Up offers a one-year intensive training program to urban young adults. The program provides a mix of hands-on skills development, mentorship, coursework eligible for college credit, and a corporate internship to prepare them for the real-world. 

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TechGen

Type: Tech Internships

Agency: Non Profit

TechGen is a free program that connects Massachusetts’ college students with local technology companies for internship and networking opportunities. Students and companies are able to use the TechGen system to explore, post, and match to internship opportunities. 

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TechHire

Type: Workforce Training

Agency: Network

A regional consortium of Boston employers and training providers are blazing the path to IT jobs, led by the Boston Private Industry Council (PIC), the City’s workforce development board, and SkillWorks, a regional funders’ collaborative. Companies from a range of sectors—including healthcare, education, government, technology, and finance—support the initiative. 

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Research & Innovation Support

 

Research & Development Tax Credit

Type: Tax Credit

Agency: Mass. Office of Business Development

This program, designed after the federal credit program, offers a tax incentive for R&D investment for both manufacturers and R&D companies. The credit is divided into two categories, a 10% credit for qualified expenses and a 15% credit for basic research payments to research organizations such as hospitals and universities.

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International Business Development

 

Exporter Financing

Type: Loan

Agency: MassDevelopment

The program offers Massachusetts companies several programs to help bring their products and services to markets around the globe, including 100% export loans and export guarantees, 100% financing for new equipment, leasehold improvements and working capital, and loans up to $2M.

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Financing

 

Subordinated Loans

Type: Loan

Agency: Mass. Growth Capital Corp.

Loans made in conjunction with bank financing. Typically, the bank will have a senior position on assets and MGCC will be in a subordinated position. These loans are usually written as 5 year Term Loans.

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Lines of Credit

Type: Loan

Agency: Mass. Growth Capital Corp.

When a company needs to receive partial advances of loan proceeds to meet working capital needs, such as for a seasonable business, a one year Line of Credit may be appropriate. A Line of Credit may be renewed for a second year or may be converted to a Term Loan.

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Term Loans

Type: Loan

Agency: Mass. Growth Capital Corp.

Working capital requirements are not often easily handled within one year. Cash flow is typically insufficient to repay all but the smallest loan in a year. Five year Term Loans therefore provide a useful time frame – long enough for cash flow to increase and to allow MGCC to be repaid.

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Contract and Purchase Order Financing

Type: Loan

Agency: Mass. Growth Capital Corp.

Winning a contract or a purchase order usually requires a firm to support labor, materials and overhead cost before billing and being paid for the work. Contract and Purchase Order financing can bridge this timing gap. Typically, a percent of the order value will be loaned, and repaid when the firm receives payment.

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Guarantees

Type: Loan Guarantee

Agency: Mass. Growth Capital Corp.

If a bank cannot extend needed credit because the collateral is inadequate, MGCC can provide a partial and limited Guarantee to enable the bank to make the loan.

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Working Capital

Type: Loan

Agency: Mass. Growth Capital Corp.

Working capital can be provided for most business operational purposes. Not typically finance real estate development.

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Equipment Loan

Type: Loan

Agency: MassDevelopment

For companies expanding operations and need to purchase equipment. The program offers loans up to $2M, fixed rate financing, and loan advance rates up to 85% of the cost of new equipment. Exporters may receive 100% financing for new equipment. 

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Real Estate Loan

Type: Loan

Agency: MassDevelopment

MassDevelopment offers real estate loans to help fund facility acquisition, renovation, construction, and permanent financing up to $7.5M. This is great for manufacturers, small businesses, and nonprofits. 

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Exporter Financing

Type: Loan

Agency: MassDevelopment

The program offers Massachusetts companies several programs to help bring their products and services to markets around the globe, including 100% export loans and export guarantees, 100% financing for new equipment, leasehold improvements and working capital, and loans up to $2M.

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Sales

 

Single Sales Tax Treatment

Type: Tax Credit

Agency: Mass. Office of Business Development

Massachusetts single weights sales when assessing apportionment taxes for manufacturers. The single sales factor apportionment is the ratio of Massachusetts sales to overall sales. Net income subject to Massachusetts tax is determined by multiplying overall net income by the apportionment factor. Many other states use three-factor apportionment which weighs the state sales, property and payroll as a percent of overall sales, property and payroll. This is advantageous for companies with significant property and employees, as it won’t be a factor in determining the amount of tax. Additionally, this provision does not penalize companies for continual investment in the business or for hiring more employees. 

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Collaborative Workspaces

 

Massachusetts Innovation Bridge

Type: Accelerator 

Agency: Non Profit

Created in partnership with the Commonwealth and The MITRE Corporation, the Massachusetts Innovation Bridge connects local businesses, nonprofits, and academic institutions with federal opportunities. Through the Innovation Bridge, federal agencies will create new relationships with innovative academic institutions, thought leaders, established companies, and with companies that previously did not work with the federal government. Together, they will discover innovative ideas, products, and services to enhance federal agency missions. The new collaborative workspace will also give Massachusetts companies, higher education institutions, and nonprofits access to new federal business opportunities.

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Real Estate

 

MassEcon

Type: Relocation Services

Agency: Non Profit

MassEcon is a nonprofit specializing in on-the-ground services to companies seeking to expand within or relocate to Massachusetts. MassEcon also engages with prospective businesses at tradeshows across the nation to help sell Massachusetts.

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