Biz-M-Power Grant Program - Massachusetts Growth Capital Corporation

PROGRAM OVERVIEW:

The Biz-M-Power crowdfunding matching grant program offers small businesses in Massachusetts financial assistance with their acquisition, expansion, improvement or lease of a facility, purchase or capital lease of equipment, or with meeting other capital needs for the business. Eligible applicants will be empowered to advance their business with an innovative approach to obtaining capital. Through crowdfunding campaigns, these businesses connect with their local residents and stakeholders to advance projects that support economic success and transformation for their business and in their communities. This program is funded by the Commonwealth’s Operating Budget.

Consideration will be given to small businesses located in Massachusetts owned by low-to-moderate income individuals (LMI) and businesses located in economic disadvantaged urban or rural communities, and businesses operating in Gateway Cities. 

FUNDING: 

Approved applications that run successful campaigns are awarded on average 5 - 6 months from application submission, please refer to FAQ section below. Click on the following link for the  Biz-M-Power Grant Process (2024).docx 

GRANT USE:

• Acquire, expand, improve or lease a facility; or
• Purchase or capital lease equipment; or
• Meet other capital needs of a business
• Funds CANNOT be used for ongoing business operations such as payroll, benefits, buying of inventory, general working capital, reimbursements, operational lease, and commercial vehicles

TOTAL FUNDS AVAILABLE: Commonwealth’s Operating Budget appropriated $7,500,000 for this program.

AWARDS: Businesses must crowdfund a minimum of $2,500 and a maximum of $20,000 to receive a 1:1 matching grant from MGCC. The combination of crowdfunding dollars and 1:1 matching grant from MGCC, businesses can earn $40,000+ through this program.

• Small Business Technical Assistance (SBTA) Sponsors, Trained Business Advisor,(REQUIRED) – Businesses have to apply with an SBTA Sponsor, SBTA Sponsor will receive $500 fee covered by MGCC in assisting the grantee.
• Patronicity Fee – Set at 5% of the crowdfunding funds raised. Additionally, there is a 2.6% plus $0.30/transaction credit card fee collected by Stripe, the payment processor used by Patronicity. Donors have the option to cover all fees at checkout, thus reducing overall fees incurred to the Project.

CROWDFUNDING: Dependent upon application approval, businesses will launch a crowdfunding campaign to reach a financial goal. Goal must be met to receive 1:1 MGCC matching grant award. If businesses raise a minimum of $2,500, MGCC will award a matching grant.   
 

• Businesses that are unable to meet their crowdfunding goal by [the campaign deadline] but have been able to raise a minimum of $2,500, will be eligible to receive a match from MGCC.  
• E.G., If you commit to fundraising $10,000 on your application by [your campaign deadline] but are only able to raise $7,000 by the [deadline], MGCC will match $7,000. Businesses will be required to submit an updated budget after the campaign closes.  
• E.G., If you commit to fundraising $10,000 on your application by the [your campaign deadline] and are able to raise $10,000 by the [deadline], MGCC will provide the one-to-one matching grant award for $10,000, bringing the total amount received by the small business to $20,000.  
• E.G., If you commit to fundraising $10,000 on your application by the [your campaign deadline] and are able to raise $12,000 by the [deadline], MGCC will provide the one-to-one matching grant award for $10,000, bringing the total amount received by the small business to $22,000.  
• E.G., If you commit to fundraising $5,000 on your application by the [your campaign deadline] and are able to raise $2,000 by the [deadline], MGCC NOT able to match but you are able to keep the funds raised on platform. Businesses will be required to submit an updated budget after the campaign closes.  
• Note exception for all or nothing campaigns must raise all committed funds in application to receive a match from MGCC This is required for all down payment for purchase of property.   
• For grant funded applicants working with SBTA Sponsors, $500 SBTA fee will add total grant match for the grantee. MGCC will cover this $500 fee unless waived by SBTA Sponsor 
• E.G. Applicants grant match is $10,000. The grant total will be $10,500.  
• $10,000 will be dispersed to grantee, and MGCC will cover the cost of the $500 SBTA fee 
• Business owners are required as last step to complete completion of project form within 90 days to verify a project is fully executed and complete. Upon completion of awarded project SBTA sponsor will get an additional $250 fee.  
• Above referenced $500 fee will be paid to the SBTA sponsor, $250 at time of awarded, and the $250 when the project is completed.  

NOTE: Businesses with retail stores or that offer face-to-face services may have a better chance with successfully crowdfunded campaigns. Examples include:

• Restaurants
• Bars
• Coffee Shops/Cafes/Bakeries
• Salons/Day Spas
• Fitness Centers (gyms, yoga studios, barre studios, etc.)
• Retail Shops (especially flower shops, craft beer & wine shop, craft supply shops, independent bookstores, pottery studios, kitchenware shops, specialty gift shops, etc.)

This is not an exhaustive list. Eligible businesses not on this list are still welcome to apply.

NOTE: Home-based businesses are not eligible to apply to Biz-M-Power. Examples of ineligible businesses include:

• Home-based daycare providers
• Home-based carpenters
• Airbnb Rentals
• Uber/Lyft/Solo Livery Drivers
• Barbers Renting Chairs

TIMELINE:

• Program Launched – March 1, 2024 
• Program Closes - June 30, 2025 or until funds are exhausted, whichever comes sooner.

APPLICANT ELIGIBILITY:

Biz-M-Power is open to participants who meet the following requirements. Must be an entrepreneur or small business that:

• Is sponsored by an MGCC Small Business Technical Assistance (SBTA) Provider
• Is operating within Massachusetts with a public-facing, brick-and-mortar (physical) location, or storefront
• Is employing 1-20 full-time equivalent (FTE) employees, including 1 or more of whom owns the business (1099’s included)
• Is the business owners’ primary source of income
• Has an annual revenue not exceeding $2,500,000
• Has been legally established/in the early-stages of business operations for at least 3 months
• Is NOT a home-based business Examples of INELIGIBLE businesses include:                                                                                                                                                                                                              - Home-based daycare providers - Home-based carpenters - Airbnb Rentals - Uber/Lyft/Solo Livery Drivers - Barbers Renting Chairs
• Is NOT owned by someone employed by the sponsoring Small Business Technical Assistance (SBTA) Provider, if applicable
• Is NOT a nonprofit, including church, or religious institution
• Is NOT a chain (chains are defined as businesses not headquartered in Massachusetts with multiple locations)
• Is NOT a franchise with more than 2 locations, including those individually owned-and-operated (Franchises with up to 2 locations will be considered, but MGCC reserves the right to limit grant funding to one location)
• Is NOT a real estate rental/sales business
• Is NOT engaged in political or lobbying activities
• Is NOT a cannabis-related business
• Is NOT member-services organization (social clubs)  
• Is NOT government-owned entity or elected official office  
• Is NOT currently listed on the federal debarment list 

Owned by:

• An individual of 18 years or older at the time of application
• A United States citizen or permanent resident 

NOTE: If a person owns multiple businesses and submits an application for each business, MGCC reserves the right to limit grant to one business per owner.

Compliance with federal funds, laws and regulations: Applicants must comply with all applicable laws.

HOW THE PROGRAM WORKS 

HOW THE PROGRAM WORKS 

Before starting: You are required to be sponsored by an MGCC Small Business Technical Provider. Click here for list FY2024 SBTA Awardees | Mass Growth Capital Corp. (empoweringsmallbusiness.org) 

 In order to qualify for this program. 

If you do not have one we would be happy to connect you with a Small Business Technical Assistance (SBTA) Provider! Submit a SBTA Introduction Request here: CLICK HERE 

APPLICATION PROCESS 

STEP 1: Apply with an SBTA Sponsor

The application must be filled out and submitted along with attachments as stated in “Required Documentation” electronically through MGCC’s online application portal, Submittable. Hard copies or electronic copies submitted in any other way, such as mailed in or emailed, will not be considered. Additionally, only complete, accurate and legible applications will be considered.

STEP 2: Application Review

• Rolling application process: Applications will be reviewed by MGCC. Applicants can expect to hear back within 2-6 weeks of the completed submission of their grant application, including all necessary supplementary documents and information.
• MGCC and Patronicity Review Teams will evaluate applications based on the eligibility criteria and preference prioritization.
• MGCC or Patronicity may contact applicants for additional information on incomplete applications.
• MGCC communicates the approval/rejection to applicants via Submittable

STEP 3: Launching Your Crowdfunding Campaign

Approved applicants will work closely with a crowdfunding coach provided by Patronicity to prepare the public-facing crowdfunding page, develop reward incentives, and come up with a strategy for a 30-60 day campaign. Campaigns must launch within 30 days of MGCC approval. Patronicity will provide technical assistance throughout the raise period.

STEP 4: Receive Your Funding

Crowdfunding campaigns that reach their goal or raises over $2,500 you will be awarded an MGCC matching grant on all funds raised during your campaign.

REQUIRED DOCUMENTATION Please be prepared to provide the following documentation when completing the application. Applications are unable to be submitted without this information

• A complete copy (all schedules) of your filed 2022 or 2023 if applicable Federal Business Tax Return as submitted to the IRS. If you file Schedule C income, please upload that document in place of a Business Tax Return
• A complete copy (all schedules) of your filed 2022 or 2023 if applicable Federal Personal Tax Returns as submitted to the IRS for each business owner with 20% or greater ownership
• Completed and signed IRS W-9 Form for your business
• Copy of business lease statement, tenant at will agreement, or mortgage statement for verification of brick-and-mortar, public-facing physical business location
• A copy of the business owner's valid photo identification (ID). This ID must match the business owner who is an authorized signer that signs this application. Please submit a photocopy of the front and back of the ID. Examples include (submit one): State-issued driver's license/ID card, U.S. Passport book or card, other valid, state or federal issued photo ID
• If your business is a LLC, Partnership or Corporation: A copy of your Certificate of Good Standing from the Massachusetts Secretary of State’s office. If you need to request a Certificate of Good Standing, click here: https://corp.sec.state.ma.us/CorpWeb/Certificates/CertificateOrderForm.aspx. Note: If you do not have a Certificate of Good Standing prior to submission of your application, it will be required prior to funding. Note: All entities organized in other states that operate in Massachusetts must be registered and in good standing in Massachusetts. Note: A Certificate of Good Standing from the Massachusetts Department of Revenue is not required and will not be accepted as a substitute of the Massachusetts Secretary of State’s Certificate of Good Standing.
• If your business is a Sole Proprietorship: A copy of your Business Certificate (DBA) from your city/town
• A copy of quotes/invoices from vendors, contractors, or installers for each item listed in your Biz-M-Power Project Table
• Biz-M-Power Project Timeline

TECHNICAL SUPPORT ON SUBMITTABLE

• Visit the Help Center: https://www.submittable.com/help/submitter/

QUESTIONS OR ASSISTANCE REQUESTS

If you have any questions about the program or are in need of translation assistance, please contact:

Theresa Ng, Community Project Manager

bizmpower@massgcc.com or (617) 523-6262 ext. 266