Bay Colony Development Corp.

What Bay Colony Development Corp. does

Bay Colony Development Corp. is a non-profit Certified Development Company (CDC) founded in June 1981 that originates and services SBA 504 loans for small businesses across New England. The company is headquartered in Waltham, Massachusetts, with additional offices in Worcester (MA), Shelbourne (VT), Warwick (RI), and Portsmouth (NH), and serves borrowers in Massachusetts, New Hampshire, Rhode Island, Vermont, and select counties of Connecticut. Its core product, the SBA 504 loan, provides long-term fixed-rate financing (10, 20, or 25-year terms) for owner-occupied commercial real estate and equipment with useful lives of 10+ years, structured as a 50/40/10 split between a participating bank (50% first mortgage at market rate), Bay Colony's CDC debenture (40% second mortgage at below-market fixed rates), and borrower equity (10%). An in-house Microloan Program supplements the core offering with loans up to $50,000 for smaller financing needs. Cumulatively, Bay Colony has funded over $750 million in loans to more than 1,600 growing businesses, representing $2.1 billion in total project financing.

Name

Bay Colony Development Corp.

Legal name

Bay Colony Development Corp.

Website

https://baycolony.org

Company type

Private

Founded year

1981

Operating status

Operating

Headcount range

11–50 employees

Short description

Bay Colony Development Corp. is a non-profit SBA Certified Development Company founded in 1981 that originates and services SBA 504 loans and microloans for small businesses across Massachusetts, Rhode Island, New Hampshire, Vermont, and select Connecticut counties, having funded over $750 million to 1,600+ borrowers.

Ownership category

akta.pro rank

Product category

SBA 504 Small Business Lending

SIC

Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

akta.pro secondary industry

SBA/USDA Government-Backed Loan Intermediation (FSAEAEAI)

Keywords

• SBA 504 loans
• Small business financing
• Commercial real estate loans
• Certified development company
• Microloan programs

Headquarters

HQ city

Maussane

HQ country

France

HQ region

Europe

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Loan Origination Fees: Approximately 2.65% of debenture amount charged at loan origination, which can be rolled into the loan
2. CDC Processing Fee: Processing fees rolled into the debenture pricing
3. Third Party Lender Participation Fee: One-time 0.5% of bank loan amount
4. Loan Servicing Fees: Servicing fees based on principal are rolled into the monthly payment
5. Microloan Program Fees: One-time application fee of $250.00 (refundable $125 if not approved), late fees of 5% of payment amount

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Bay Colony Development Corp. is a Certified Development Company (CDC) that originates, processes, and services SBA 504 loans providing long-term (10, 20, or 25-year) fixed-rate financing for the acquisition, improvement, or new construction of owner-occupied commercial real estate and equipment (10+ year useful life) for small businesses. The program provides up to 90% total project financing (40% from Bay Colony at below-market fixed rate, 50% from a participating lender at conventional market rate), and is supplemented by an in-house Microloan Program for loans up to $50,000.

Product overview

Bay Colony Development Corp. operates as a Certified Development Company (CDC) offering a unified financial services platform centered on SBA 504 Loans, supplemented by a Microloan Program for smaller financing needs. The core SBA 504 product provides 10, 20, and 25-year fixed-rate financing structures for commercial real estate and equipment acquisitions, while the Microloan Program addresses smaller capital needs up to $50,000. Supporting online tools including a Loan Calculator and Eligibility Guidelines Portal enable prospective borrowers to self-assess financing options. The company also offers online account management services including ACH payment authorization for existing borrowers.

Differentiator

Problem solved

Functional benefit

Products and services

• SBA 504 Loans Long-term fixed-rate financing (10, 20, or 25-year terms) for acquisition, improvement, or new construction of owner-occupied commercial real estate and equipment with 10+ year useful life. Provides up to 90% total project financing ($25,000 to $5 million from Bay Colony; up to $5.5 million for manufacturers). Targeted at small businesses in New England.
• Microloans

Quantifiable outcome

• 98% of businesses in New England meet basic eligibility requirements for SBA 504 financing
• +2 more outcomes

Named customers10 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eight partnerships are on record, tiered minor and core.

• Center for Women and Enterprise (RI)minorOthersBay Colony is a sponsor of this economic development organization serving women entrepreneurs in Rhode Island. The organization provides resources and support for women-owned businesses.
• New Hampshire Community Loan FundminorOthersBay Colony sponsors this community development organization that provides loans and financial education in New Hampshire.
• Vermont Community Loan FundminorOthersBay Colony sponsors this Vermont-based community loan fund focused on affordable housing and economic development.
• NewVue Communities (MA)minorOthersBay Colony sponsors this Massachusetts community development organization serving central Massachusetts.
• Community Development Partnership (Cape Cod, MA)minorOthersBay Colony sponsors this Cape Cod-based community development organization.
• National Association of Development Companies (NADCO)coreStrategic or Co-development PartnerBay Colony serves on the NADCO Board of Directors (Erik Adams has served since 2019). NADCO is the trade association of SBA Certified Development Companies, providing industry standards, advocacy, and professional development.
• U.S. Small Business Administration (SBA)coreStrategic or Co-development PartnerBay Colony operates as an SBA Certified Development Company (CDC), administering SBA 504 loans backed by 100% SBA-guaranteed debentures. First SBA Accredited Lender (1991) and Priority Lender (1996).
• Participating Banks and LenderscoreChannel Partner/ Reseller/ DistributorBay Colony works with private-sector lenders (primarily banks) including Middlesex Savings Bank, Eastern Bank, Cambridge Savings Bank, HarbourOne Bank, Centreville Bank, and many others to provide 504 financing. Bank provides 50% first mortgage, Bay Colony provides 40% second mortgage through SBA 504 program.

Scale indicators9 records

Recent moves10 records

Expansion highlights5 records

Broad incumbents

• Newtek Business Services: Diversified SMB financial services platform with significant SBA lending operations (504 and 7(a)). Competes with Bay Colony for SBA 504 deal flow and offers a much broader business services portfolio.
• Live Oak Bank: Large nationwide commercial bank specializing in SBA lending (including SBA 7(a) and 504) and other small business verticals. A broader incumbent in SBA lending that competes for the same small business borrower base as Bay Colony's network.
• Celtic Bank: Utah-chartered industrial bank and one of the largest SBA 7(a) lenders in the U.S., also participating in SBA 504. A broad incumbent in SBA lending that competes indirectly for the same SMB financing demand.

Direct peers

• Florida First Capital Finance Corporation: Florida SBA Certified Development Company providing 504 loans for owner-occupied commercial real estate and equipment. Operates the same SBA 504 CDC model as Bay Colony in a different regional market.
• California Statewide CDC: California-based SBA Certified Development Company offering SBA 504 loans statewide. Directly comparable CDC model; notably, Bay Colony's CEO Erik Adams spent six prior years at this firm.
• CDC Small Business Finance: One of the largest Certified Development Companies in the U.S., headquartered in California and focused on SBA 504 lending to small businesses. It is the closest scale and product analog to Bay Colony's SBA 504 CDC model.
• Pacific Community Capital: California-based nonprofit Certified Development Company providing SBA 504 financing to small businesses. Closely mirrors Bay Colony's nonprofit CDC structure and SBA 504 origination focus.
• Great Plains Development, Inc. Nebraska-based SBA Certified Development Company administering SBA 504 loans across multiple Midwestern states. Directly comparable nonprofit CDC with multi-state SBA 504 origination.

Regional players

• North Central MA Development Corp: Regional economic development organization providing SBA 504 lending and small business financing in north-central Massachusetts. A nearby regional CDC whose staff overlap (Donna Leger previously worked there) underscores direct comparability.

Others

• Vermont Community Loan Fund: Vermont-based community development financial institution (CDFI) providing small business loans and technical assistance. Operates in the same New England geography where Bay Colony provides SBA 504 financing, making it an adjacent ecosystem peer.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/baycolony504
• Facebookfacebook.com/BayColonyDevelopment
• LinkedInlinkedin.com/company/bay-colony-development-corp
• Instagraminstagram.com/bcdc504sba

Revenue estimate

Valuation estimate

Number of profiles

Profiles17 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Bay Colony Development Corp.