Small Business Loans in Massachusetts: Top 4 Options

Updated on November 14, 2021
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Known for its entrepreneurial community and talented workforce, Massachusetts is undoubtedly one of the best states in which to start a business. But running a business can take a lot of work and, sometimes, it means you’ll need to find extra working capital to help you keep your operations running smoothly. For example, business loans can cover any unexpected expenses or allow you to expand your business as you see fit.

Finding the right Massachusetts business loan doesn’t have to be complicated. Several lenders offer SBA loans, which are guaranteed by the Federal Government, and other working capital options like business lines of credit, term loans, and invoice factoring.

To save you from spending hours scouring for the best Massachusetts business loan, we’ve created this guide listing the top four business loans in Massachusetts. We’ll also cover a few online lenders that offer business loans nationwide.

Top 4 Massachusetts Small Business Loans

If you are looking for a Massachusetts business loan, you’ll have the option of choosing between private lenders, nonprofits, and state lending programs. You’ll find that Massachusetts has several alternative financing options for small businesses that are unable to acquire traditional forms of financing.

1. Massachusetts Growth Capital Corporation

Over the past 40 years, Massachusetts Growth Capital Corporation (MGCC) has supported thousands of business owners with a variety of financial products and services. MGCC offers several types of business loans, including:

  • SBA Microloans: MGCC is one of two lenders that facilitate SBA microloans. These microloans range from $5,000 to $50,000 and can be used to purchase inventory, supplies, and equipment.
  • Term Loans: MGCC offers term loans up to $1 million. Interest rates are as low as 5%, and there are no prepayment penalties.
  • Line of Credit: MGCC’s Line of Credit allows business owners to access a replenishing credit line up to $1 million.
  • Contract Financing: Contract Financing lets businesses get a cash advance on work that has yet to be started. Contract Financing allows business owners to avoid cash flow crunches. With MGCC’s contract financing, businesses can receive advances up to $1 million.

To apply for an MGCC business loan, you’ll have to download their online application form and answer basic questions about your business and explain why your business needs a loan.

2. Common Capital

Common Capital is a certified CDFI, or Community Development Financial Institution, which means they’re primarily focused on providing affordable financial products and resources to projects that benefit the community. Common Capital provides fixed-rate business loans up to $300,000. Interest rates on these business loans range from 8.25% to 10%. These loans are largely meant for small businesses that cannot get a traditional bank loan. Businesses that are not located within western Massachusetts are not eligible to apply for a business loan from Common Capital.

Applicants who are interested in applying for a business loan from Common Capital are required to submit a short application form, which simply asks for your business information and signature. A loan officer will then review your application and request more information from you.

3. MassDevelopment

The Massachusetts Development and Financing Agency (MassDevelopment) works to stimulate and revitalize the Commonwealth economy through investing in job creation, increasing housing units, redeveloping urban environments, and more. To encourage job creation, MassDevelopment offers several types of business loans, although some of these loans are not strictly for small businesses. Small businesses interested in getting a loan from MassDevelopment can choose to apply for an Equipment Loan (which allows businesses to purchase equipment to streamline operations) or a Working Capital Loan. The Working Capital Loan goes up to $50,000 and is strictly for manufacturing companies that are interested in hiring consulting services.

MassDevelopment’s Equipment Loan is up to $2,000,000 and is fixed-rate. The maximum term length for an Equipment Loan is seven years.

4. Eastern Bank

Eastern Bank is the largest community bank in Massachusetts, and it’s also New England’s number one SBA Lender. At Eastern Bank, small business owners have the option of applying for the Eastern Express Business Loan, which has a quick application process and provides up to $100,000 in business financing, or SBA 7(a) and SBA 504 Loans.

The Eastern Express Business Loan is exclusive to small businesses in Massachusetts and New Hampshire. These loans have five-year terms and have fixed interest rates. The application process for an Eastern Express Business Loan is extremely fast, as there isn’t much business documentation that is required.

Best Online Small Business Loans for Massachusetts Businesses

Sometimes, it’s good to broaden your business loan options by looking into other types of small business financing outside of state borders. Fortunately, there are many strong online small business loans that are specifically meant for small businesses. Here are some of the best online small business loans:


Fundbox is a financial technology company based in San Francisco. If you need cash quickly, Fundbox is for you–small businesses can potentially receive business financing as fast as one business day. In addition to their fast funding decisions, Fundbox’s business line of credit tops out at $100,000, which means that, if you need larger amounts of capital, you’ll have to look elsewhere.

To meet Fundbox’s minimum eligibility requirements, you need to have accounting software that integrates with their software, as well as the following:

  • A credit score of 500+
  • A bank account


Another online small business lender is OnDeck. OnDeck offers quick, straightforward financing products, specializing in short- and long-term business loans and business lines of credit. Like Fundbox, OnDeck’s financing process is fast—most businesses can get funds simply by filling out their online application form. OnDeck’s loan amounts range from $5,000 to $500,000 and APR interest rates start at 11.89%.

OnDeck’s eligibility requirements are slightly more selective than Fundbox. Business owners must have a business credit score of at least 600, be in business for no less than a year, and generate $100,000 in annual revenue.

Funding Circle

Funding Circle is an international marketplace lender to businesses. For U.S. business owners, Funding Circle offers SBA 7(a) Loans and term loans. Funding Circle’s term loans range from $25,000 to $500,000 and have term lengths up to 12 years. Funding Circle’s eligibility requirements are a bit more rigorous compared to Fundbox and OnDeck. Businesses that are interested in getting a term loan must have a credit score of at least 620, no personal bankruptcies within the last seven years, and have a minimum of two years of business history.  If you’re able to meet those requirements, you’ll find that applying to Funding Circle is similar to Fundbox and OnDeck; all you need to do is fill out an online application.

Other Resources for Small Businesses in Massachusetts

If you need additional help with executing certain business initiatives, like developing a business plan, conducting cash flow analysis, or promoting the interests of small businesses within your local area, there are several small business associations and organizations that offer programs and free counseling.

Here are some of the best Massachusetts small business resources available:

Massachusetts Small Business Development Center

The Massachusetts Small Business Development Center (MSBDC) provides free, personalized business assistance and training to small businesses. MSBDC works in partnership with the SBA, Department of Defense, and the Massachusetts Office of Business Development. MSBDC can help small businesses with:

  • Developing a business plan
  • Cash flow analysis
  • Organizational issues
  • Financing
  • Marketing
  • International trade

There are several MSBDC locations scattered throughout the Commonwealth. The five regional offices are located in Fall River, Pittsfield, Salem, Springfield, and Worcester.

Massachusetts Chambers of Commerce

If you’re interested in advocating for the interests of small businesses within your community, you may want to consider membership in your local Chamber of Commerce. There are several regional Chambers of Commerce in Massachusetts. As a Chamber of Commerce member, you have the opportunity to promote business activities within your local municipality. You can also receive benefits such as discounts from other members, as well as the distinction of being a preferred local vendor.

The Bottom Line

Excited by all of the small business loan options for your Massachusetts-based business? We get it. Now comes the tricky part—applying for a business loan. When applying for a business loan, you should always apply when your business is ahead—that way, you’re not in a rush to find working capital. To ensure that you’ve found the perfect small business loan, make sure you check the lender’s eligibility requirements. If you find that you don’t meet all of the exact underwriting requirements, don’t worry. With that said, if you’re struggling to get a small business loan, there are several online lenders and other national business loan options at your disposal.