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.

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Presentation to MassMEDIC 7/27/2010

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

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