Presentation to MassMEDIC 7/27/2010

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A presentation to MassMEDIC on MassDevelopment's customized financing solutions for medical device manufacturers and other life science companies.

A presentation to MassMEDIC on MassDevelopment's customized financing solutions for medical device manufacturers and other life science companies.

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  • 1. Presentation to MassMedic July 27, 2010
  • 2. MassDevelopment: Who we are
    • The state’s finance and development authority, works with businesses, non-profits, financial institutions and local officials to stimulate economic growth across the Commonwealth
    • During FY 2009, financed or managed 229 projects statewide representing an investment of more than $1.2 billion in the Massachusetts economy
    • These projects are supporting the creation of 1,488 new housing units and more than 8,232 permanent or construction-related jobs
  • 3. MassDevelopment: What we do
    • Promote capital investment in Massachusetts by providing innovative financing and development solutions
    • Primary tools:
        • Tax-exempt bonds
        • Loans and guarantees
        • Real estate planning and development services
    • Business model - partnering with banks, businesses, and municipalities to deliver programs and services to make projects successful
  • 4. New Loan Programs for Manufacturers
    • Planning Loans
      • Up to $50,000
      • Consultant services to evaluate and improve operations
    • Innovation Initiative Loans
      • Amounts up to $500,000
      • Low interest rates
      • Maximum 7 year term
      • Flexible collateral and underwriting
      • Proceeds can be used for implementation of mfg. improvement plans, upgrades to plant and equipment, product development, clean energy/ green energy.
  • 5. Traditional Loan Products
    • Real Estate Loans
    • Equipment Loans
    • Loan Guarantees
    • Brownfields Site Assessment and Remediation Loans
    • New Markets Tax Credits – Loans and Equity
  • 6. Export Programs
    • Export Loans
      • Up to 100% Financing for:
      • Leasehold Improvements
      • New Equipment
      • Term Working Capital
    • Export Credit Insurance
      • Insures 90-100% of Foreign Receivables
      • Provides Credit Terms to International Buyers to Increase Sales
  • 7. Optim, Inc – Sturbridge, MA
    • Manufacturer of Medical Endoscopes and Industrial Fiberscopes
    • $275,000 Mortgage Loan to Purchase RE using SBA 504 Program
    • $175,000 Equipment Loan using Export Guaranty Program
    • Retained 37 jobs and created 10 new jobs
    • Recipient of WorkForce Training Grant
  • 8. Hyaluron, Inc. – Burlington, MA
    • Contract manufacturer specializing in Aseptic Filling of Vials and Syringes
    • $500,000 Participation in $1.1 MM Loan from Middlesex Savings Bank for lab build out
    • $1,000,000 ETF loan for new Equipment (lyophilizer & vial filler)
    • Both loans used Export Guaranty Program
    • Retained 100 Jobs, Created 24 New Jobs
  • 9. Tax-Exempt Bond Financing
    • Interest is exempt from federal income tax
    • Interest rates 1 – 2% lower than conventional loans
    • Borrower and project must both “qualify” under IRS Code
  • 10. Tax-Exempt Bond Financing
    • Eligible Projects
    • New equipment
    • Building acquisition and expansion
    • Land acquisition
    • New construction
    • Debt refinancing
    • 2009 Stimulus Bill eligible projects
    • Eligible Borrowers
    • 501(c)(3) organizations
    • Assisted living/long-term care developments
    • Manufacturers (small issues)
    • Environmental enterprises
    • Governmental entities
    • Affordable rental housing developers
  • 11. Tax-Exempt Bonds Industrial Development Bonds
    • Issued for manufacturers subject to IRS eligibility for:
      • Construction of new manufacturing facilities
      • Purchase and renovation of existing facilities
      • Acquisition of new manufacturing equipment
    • Up to $10 million of tax-exempt bonds can be issued per borrower per municipality
  • 12. Image Diagnostics – Fitchburg, MA
    • Manufacturer of Specialized Equipment and Accessories for Medical Imaging
    • $1,500,000 Tax Exempt Bond
    • Retained 12 jobs, added 10 jobs
  • 13. For additional information
            • Contact:
            • Kelly Arvidson , VP, Business Development
            • 978-784-2901
            • Bob Seega, VP, Investment Banking
            • 508-363-2799 x132
            • Roy Angel VP, Lending
            • 508-363-2799 x 126
            • Jim Kenney , VP Lending
            • 617-330-2000