INNOVATIVE BUSINESSES LOAN PROGRAM LAUNCHED BY THE INNOVATION CITY

SOMERVILLE

- The City of Somerville-the 'Innovation City'-is supporting the growth of

next-generation industries that will fuel the 21^st century economy

with the creation of the Somerville Innovation Fund (the I-Fund), a $1 million

loan program to support the growth of innovative businesses in the city.

Businesses

expanding in Somerville that feature innovation in their purpose, operation,

products or services, or other demonstrable aspect of their operation, can

apply for loans from $25,000 up to $500,000 to support working capital

purposes. With flexible terms and interest rates based on a full evaluation of

each company, these loans support the special borrowing needs of expanding

businesses. Priority for the loans goes to projects that create jobs, leverage other

financing, and are located in designated economic opportunity areas.

Similar

to the $300,000 working capital loan that the City of Somerville provided to

Greentown Labs for its expansion into Somerville, I-Fund loans contain

requirements that the business must hire new employees within one year, that

not less than 51 percent of new jobs must be available to persons who meet low-

moderate-income guidelines, and that the business must agree to make a good

faith effort to hire Somerville residents for all available job opportunities.

"If

Somerville is going to compete in the new industrial renaissance, we have to

support those businesses that will form the foundation of the 21^st

century economy. We launched our Future Economies Commission specifically to

ensure that Somerville is at the forefront of the next generation of economic

opportunities," Mayor Joseph A. Curtatone said. "These loans directly support

job creation in the city, while also planting the seeds that will lead to the

revitalization of the city's industrial and business districts and unlock other

important economic opportunities for our city. These growing businesses are

looking to Somerville, because it's a city that supports originality,

creativity and innovation."