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Microloan Program

Mission

To assist in the creation of new small businesses and expansion or retention of existing small businesses by providing short- and long-term, fixed-rate, low-interest loans to qualified borrowers.

Eligible Applicants

New or existing small business owners interested in opening, expanding, or retaining a business in the city of Worcester.

  • Preference will be given to applicants whose business will occupy currently available vacant space

Eligible uses:

  • Working capital
  • Purchase of equipment
  • Purchase of inventory
  • Construction
  • Remediation

Funding

This program is funded through the City of Worcester's Community Development Block Grant (CDBG) funds, which are allocated by the United States Department of Housing and Urban Development (HUD).

Loan amounts may range from $5,000 to a maximum of $10,000 with flexible terms of one (1) to ten (10) years.

HUD Eligibility Requirements

In order to be eligible for CDBG funding, each applicant must qualify as meeting one of the following national objectives of the CDBG program:

  • Benefiting low- and moderate-income persons
  • Meeting an urgent need
  • Prevention or elimination of slum or blight

Contact Person

Peter Dunn, Business Programs Manager, 508-799-1400, x242, dunnp@worcesterma.gov