1. Mill Redevelopment – Alternative Financing for Business Growth and Housing Development October 2015 6/11/2016

2. MassDevelopment works with businesses, nonprofits, and local, state, and federal officials and agencies to strengthen the Massachusetts economy. Through these collaborations we help create jobs, increase the number of housing units, eliminate blight, and address factors limiting economic growth including transportation, energy, and infrastructure deficiencies. Both a lender and developer, the Agency’s staff works with private- and public-sector clients to stimulate economic growth.

3. Role of Alternative Lending Sources © 2013 MassDevelopment 3 Provide Credit Enhancement to Lenders “Bridge” to Conventional Financing Establish Payment History and Track Record Fill the “Gaps and Holes” Provide Access to Capital Supplement and Complement Conventional Lending Sources

4. Alternative Lending Sources in MA MassDevelopment Massachusetts Life Science Center Massachusetts Growth Capital Corp. Mass. Capital Resource Corporation BDC Capital Mass. Technology Development Corporation Massachusetts Clean Energy Center State Infrastructure Grants (MassWorks and MORE Grants) and Workforce Dev. Grants © 2013 MassDevelopment 4

5. Federal Alternative Lending Sources Small Business Administration: - SBA 7(a) Guaranty - SBA 504 Program - SBIC’s (eg. BDC Capital Corp.) USDA Loan Guarantees (Rural Communities Only) HUD Loan Guaranty Programs (Sections 108 & 202) © 2013 MassDevelopment 5

6. MassDevelopment, as the State’s Finance and Development Agency, fosters real estate and business projects that generate economic benefits for local communities and the state as a whole. How Can MassDevelopment Help You Grow the Businesses in your Community? Eligibility: Corporations, RE Trusts, LLCs, LLPs, 501(c)3 Corps and Sub Chapter S Corps All Eligible Primarily a Fixed Asset Lender $100,000 to $7.5MM for Direct or Participation Loans Up to $2,000,000 for Equipment Loans Businesses Must be Located in Massachusetts Must Be Some Level of Public Purpose Benefits

7. Predevelopment loans can be used to finance early stage project costs, such as architectural and engineering work or traffic and feasibility studies, which are necessary to advance a project to the construction stage. MassDevelopment also administers the State’s Brownfields Redevelopment Fund. The Brownfields Redevelopment Fund was created in 1998 to encourage the reuse of brownfields in Economically Distressed Areas (EDAs) throughout Massachusetts. Predevelopment Financing:

8. Predevelopment and Brownfields Financing: Predevelopment Loans up to $100,000 Deferred Interest Payments The Borrower is Required to Provide a 50% Match for these Loan Funds. Brownfields Assessment Loans Provide Interest- Free Financing of up to $100,000 Per Redevelopment Site for Environmental Testing. Brownfields Remediation Loans Provide Low- Interest Financing of up to $500,000 for Environmental Clean-Up. © 2013 MassDevelopment 8

9. Working Capital Loan Guaranty Program for Manufacturers Equipment Loans Term Working Capital Emerging Technology Fund Exporter Financing Rapid Access Manufacturing Portal Manufacturing Innovation Grants Working Capital Loan Guaranty Program for Manufacturers Equipment Loans Term Working Capital Emerging Technology Fund Exporter Financing Rapid Access Manufacturing Portal Manufacturing Innovation Grants MassDevelopment continues to work with manufacturers of all sizes to finance manufacturing facilities and equipment and provide export financing to access global markets. We offer financing options for projects from the predevelopment stage through permanent financing at preferential interest rates to manufacturers. Manufacturer Financing:

10. © 2013 MassDevelopment 10 Algonquin Industries, Inc. Contact: Edward J. Freitas efreitas@algonquinind.com 508-966-4600 www.algonquinind.com efreitas@algonquinind.com www.algonquinind.com Boston Engineering Corporation Contact: Mark Smithers innovationcenter@boston-engineering.com 781-466-8010 www.boston-engineering.com innovationcenter@boston-engineering.com www.boston-engineering.com Connecticut Center for Advanced Technology, Inc. (CCAT) Contact: Don Balducci dbalducci@ccat.us 860-282-4942 www.ccat.us dbalducci@ccat.us www.ccat.us Worcester Polytechnic Institute (WPI) Contacts: Walter Towner and Toby Bergstrom innovate@wpi.edu 508-831-6785 www.wpi.edu innovate@wpi.edu www.wpi.edu New Manufacturing Innovation Grants Massachusetts manufacturers with 100 or fewer employees have access to discounted services at designated Innovation Centers for access to expertise and equipment for product development, prototyping, scale-up, cost reduction, and other services. The Innovation Centers have been chosen for their technical expertise and experience working with manufacturing companies. MassDevelopment will pay the lesser of 75 percent or $75,000 of the cost of a contract between a manufacturing company and the Innovation Center of its choice. Companies will pay the remaining amount. Companies will contract directly with their chosen Innovation Center listed below:

11. By providing financial and technical assistance, MassDevelopment fosters real estate and business projects that generate economic benefits for local communities and the state as a whole. Business Growth & Housing Financing: Real Estate Loans Equipment Loans Mortgage Insurance Guarantees Green Loan Program Exporter Financing Tech Dollars for Non-Profits Real Estate Loans Equipment Loans Mortgage Insurance Guarantees Green Loan Program Exporter Financing Tech Dollars for Non-Profits

12. © 2013 MassDevelopment 12 Real Estate Loans can be used to fund facility acquisition, renovation, construction, and permanent financing of rental housing and mixed-use projects. Our real estate loan program offers: Loans or bank loan participations up to $7,500,000. Construction loans are typically made in partnership with another lender For owner-occupied real estate, loan advance rates up to 90% of the property value Affordable Rental Housing Development Financing Tax-Exempt BondsTax-Exempt Bonds For certain projects, it’s even more important to keep borrowing costs down. We issue tax- exempt bonds for properties that meet federal affordable income requirements. Eligible rental housing projects include: Multifamily Senior Assisted living The bonds can be used to finance new construction or rehabilitation of existing housing, or acquisition and preservation of “expiring use” projects. Qualified multifamily and senior rental housing projects may also be eligible for an allocation of 4% low income housing tax credits.

13. Infrastructure Financing Poor infrastructure is commonly cited as the largest obstacle to spurring economic growth, in the Commonwealth and throughout the country. Infrastructure Investment Incentives (I-Cubed) District Improvement Financing (DIF) Local Infrastructure Development (LID) All programs set a district and pay for public infrastructure through a tax. How a district is set and what taxes are used will depend on the program. All three programs can be used independently or in combination to meet a project’s financing needs. Programs allow for issuance of tax- exempt bonds to fund infrastructure. 13

14. Station Lofts - Brockton 25 new housing units – 14 affordable (60% AMI) – 11 market rate Predevelopment – $1,061,423 Brownfields Assessment & Remediation – Predevelopment Loan for architectural and engineering Tax-exempt Bonds – $4.8 million © 201 3 Ma ss De vel op me nt 14

15. MassDevelopment helps cities and towns revitalize, develop, and transform. Contact Us: MassDevelopment Central Region: 89 Shrewsbury Street Worcester, MA 01609 (508)-363-2799 Kelly Arvidson, Business Development Roy Angel, Direct Lending Shyla Matthews, Community Development Robert Seega, Investment Banking Tania Hartford, Real Estate Services Contact Us: MassDevelopment Central Region: 89 Shrewsbury Street Worcester, MA 01609 (508)-363-2799 Kelly Arvidson, Business Development Roy Angel, Direct Lending Shyla Matthews, Community Development Robert Seega, Investment Banking Tania Hartford, Real Estate Services