Bay Colony Development Corp. in the News

Congratulations to our borrower, Roses Restaurant, for being featured in Berkshires Week as one of the top 7 picks for places to linger with a friend over lunch! Roses is located at 160 Housatonic Street in Lee and is open for Breakfast, Lunch and Brunch.  Stop by when you are in the area and support this great small business!

Join us as we celebrate a huge milestone for the CDC lending industry.  CDC lenders and the SBA have helped over 175,000 small business owners receive  $100,040,561,000.00 in all time SBA 504 financing.  The total impact, which includes the financing from third party lenders, has supported over $250 billion in local economic development across the nation.  

We applaud the hard work of the CDCs, their lending partners, the SBA and 504 champions in Congress for their commitment and focus on making a difference for small businesses.  Our collaboration and shared mission has ensured that small business owners across the country get the financing they need to succeed, grow, create jobs and enhance their local communities.    

Reach out to us to see how the 504 loan program can help your borrowers!

Each year, the Small Business Administration (SBA) reviews certain fees payable to the Agency by 504 borrowers to determine if any of those fees need to be adjusted to cover the estimated subsidy costs of the 504 loan program.

Program fees paid on 504 loans for loans approved on or after Oct. 1, 2021, through Sept. 30, 2022 will be as follows:

(a) The Fees include the one-time upfront SBA Guarantee Fee that is priced as an Administrative Cost in the Debenture at 0.005 of Net Debenture Proceeds (50 basis points). This applies to both regular 504 Loans and Debt Refinance without Expansion 504 Loan approved in FY2022.
(b) The Ongoing SBA Guarantee Fee for regular 504 Loans approved in FY2022 is decreased to 0.2475% (24.75 basis points) from the FY2021 Ongoing SBA Guarantee Fee which has been 0.4517% (45.17 basis points) of the outstanding amount of the 504 Loan.
(c) The Ongoing SBA Guarantee Fee for Debt Refinance without Expansion 504 Loans approved in FY2022 is decreased to 0.2590% (25.90 basis points) of the outstanding amount of the 504 Loan (0.2475% plus 0.0115%) from the FY2021 Ongoing SBA Guarantee Fee for Debt Refinance without Expansion of 0.4865% of the outstanding amount of the 504 Loan (0.4517% plus 0.0348%).
(d) The Economic Aid Act’s waiver of the Third Party Lender Participation Fee ends September 30, 2021.

Bay Colony Development Corp. is happy to announce that effective September 1st, Laura Brown will be joining our team. Laura brings a wealth of SBA and financial services knowledge to our team, having most recently worked for BDC Capital/ CDC New England as an SBA 504 Business Development Officer covering the Northern MA and NH Markets. Prior to that Laura worked for Eastern Bank and Salem Five Bank in the Business Banking teams.

We are excited to have Laura join our team and assist Bay Colony Development Corp. to continue our expansion in the New Hampshire market and to provide the excellent level of customer service she is known for to our bankers and borrowers.

Her contact information will be shared once she starts!

Welcome Laura!

Bay Colony Development Corp celebrates our 40^th Anniversary this June.  We were founded in June 1981 by David King and George Berbeco, David served as our President and George served as our Board Chair. Early Applications had to be hand delivered to SBA Boston District Office, and David would sit down with the loan officer to go over each application in person.  Originally founded to administer the SBA 503 Program (now known as the 504 Loan Program), Bay Colony was formed with the mission of helping Small and Medium Sized businesses grow and be able to obtain long term fixed rate financing for long term assets.  In 1981, we served the majority of the State of Massachusetts, and over the last 40 years we have expanded to serve growing small businesses statewide in Massachusetts, Rhode Island, New Hampshire, Vermont and the Northern counties in Connecticut.  As we reflect back on the last 40 years, we thought it would be nice to compare where we started in 1981 to where we are today!

In 1981, we had…

• 2 employees
• 5 loan approvals totaling $1,177,000
• 0 closings
• Maximum debenture in 1981 was $500,000
• Interest rate ranged from 11.0% – 15.04%
• BCDC was renting a shared office in the basement of a building owned by one of its board members

In 2021, we have…

• 13 employees
• In FY 2020 we had 114 loan approvals totaling $64,679,000
• 105 loan closings for nearly $57,000,000
• Maximum debenture in 2021 is $5 million for traditional 504 borrowers and manufacturers and $5.5 million per project for Energy projects
• Interest rate averaged all-time lows below 3%
• Bay Colony Development Corp rents office spaces in Waltham, MA; Worcester, MA; Warwick, RI;  Nashua, NH; Shelbourne, VT as well as having employees working remotely
• Our Longest Tenured employee has been with Bay Colony Development Corp. for 36 years.  Mary Katherine Mansfield started working Part Time while attending school, and little did she expect 36 years later to be President and CEO of Bay Colony Development Corp.
• Additional Staff member tenures include Danielle Boutin at over 25 years; Caileen Horrigan and Betty Ule over 15 years; and Erik Adams at 11 Years
• In addition to the 504 loan Program, we now also offer an in house Micro Loan Program providing Small Businesses with loans up to $25,000

As we celebrate our 40^th Anniversary, we know we could not have gotten to where we are without the relationships that we have built with our lending partners, SBA District offices, SBA Loan Processing Center and SBA headquarter staff as well as the support from Bay Colony Development Corp. Board Members.  Sadly, in 2020 we lost one of our founding Board Members, Walter Huskins.  We thank you for your support over the last 40 years, and we look forward to what the next 40 years will bring as we continue to Help Small Businesses Grow!