Boston is one of the most well-funded entrepreneurial ecosystems in the world. The city hosts more venture capital per capita than nearly any market outside Silicon Valley, but there’s also a strong network of community lenders, state grants, and SBA programs for small businesses that aren’t on the VC track. Here’s how to find funding for your Boston business.
SBA Loans in Boston
The SBA Massachusetts District Office is located in Boston and supports small businesses across the state with SBA 7(a) loans, SBA 504 loans for commercial real estate, and SBA microloans. The SBA 7(a) is the most versatile, covering working capital, equipment, and business acquisition. The 504 program is specifically for owner-occupied commercial real estate and major equipment purchases.
Key SBA Lenders in Boston
- Eastern Bank: One of New England’s largest independent banks, Eastern is a prolific SBA lender in the Boston market. Known for working with minority-owned and women-owned businesses.
- Rockland Trust: Active SBA lender with deep roots in Greater Boston. Strong community bank feel with competitive SBA rates.
- South Shore Savings Bank: Local savings bank with strong SBA micro and small business lending programs for startups and early-stage companies.
Massachusetts Small Business Grants
Massachusetts Growth Capital Corporation (MGCC)
MGCC provides capital access to Massachusetts businesses that cannot get conventional bank financing. Programs include direct loans, loan guarantees, and equity investments. MGCC specifically focuses on businesses owned by minorities, women, veterans, and people with disabilities. Applications are available through their Boston office.
MassDevelopment
MassDevelopment is the state’s finance and development agency. They offer Tax Increment Financing (TIF), Brownfields loans, industrial revenue bonds, and various programs to support Boston businesses acquiring property or building infrastructure. Particularly strong for manufacturers and industrial businesses.
City of Boston Small Business Grant Programs
The City of Boston Office of Small Business Development runs periodic grant programs, facade improvement grants, and neighborhood economic development initiatives. Check the city’s website regularly as programs open and close throughout the year.
CDFI and Community Lenders
Accion Opportunity Fund
Accion is a national CDFI with a strong Boston presence, offering microloans from $5,000 to $250,000 for small business owners who may not qualify for traditional bank financing. Particularly active in minority and immigrant-owned business lending across Boston neighborhoods including Roxbury, Dorchester, and East Boston.
Boston Ujima Project
The Ujima Project is a community investment fund focused on Boston neighborhoods historically underserved by traditional capital. The fund supports businesses in Roxbury, Dorchester, Mattapan, and Jamaica Plain with investments ranging from $25,000 to $300,000. A unique community-owned model where workers and residents vote on investments.
Rising Tide Capital (Boston Chapter)
Rising Tide provides business development services and access to micro-capital for entrepreneurs in under-resourced communities. Strong track record helping first-generation business owners build sustainable companies.
Venture Capital & Angel Investing
Boston is the #2 venture market in the US. The concentration of VC firms in the Seaport, Back Bay, and Cambridge is extraordinary:
- General Catalyst: Multi-stage VC with Boston roots, known for consumer and enterprise tech investments.
- Bessemer Venture Partners: Major presence in Boston with focus on cloud, marketplace, and health tech.
- Spark Capital: Based in Boston, focus on consumer internet, fintech, and marketplaces.
- Greentown Labs: The largest climatetech incubator in North America, based in Somerville, provides funding and lab space for clean energy startups.
- Boston Harbor Angels: Active angel network connecting early-stage founders with accredited investors across industries.
- Hub Angels Investment Group: Boston-based angel group investing in seed-stage New England companies.
Accelerators and Incubators with Funding
- MassChallenge: Zero-equity accelerator offering grants up to $100K to winning startups. Based in the Seaport.
- Harvard Innovation Labs (i-lab): Resources and sometimes seed funding for Harvard-affiliated founders.
- MIT delta v: MIT’s flagship accelerator providing coaching, workspace, and connections to MIT’s investment network.
- Founder Institute Boston: Pre-seed accelerator with a structured program for early-stage founders.
Massachusetts Life Sciences Center (MLSC)
For biotech, pharma, and medical device companies, the Massachusetts Life Sciences Center provides grants, loans, and tax incentives specifically designed for the life sciences sector. Massachusetts is the #1 life sciences market globally, and the MLSC is a key funding vehicle for companies in this space.
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