Boston Local Development Corporation (BLDC)

What Boston Local Development Corporation (BLDC) does

Boston Local Development Corporation (BLDC) is a 501(c)(3) nonprofit small business lender founded in 1982 and operated under the Boston Planning & Development Agency (BPDA). Its core function is providing gap financing in the form of subordinated debt to for-profit small businesses located in or relocating to the City of Boston. BLDC offers two principal loan products: a Standard BLDC Loan ranging from $40,000 to $150,000, and the Backstreets Boston Back-up Loan Program for industrial and manufacturing firms, with loan amounts up to $250,000. Pricing is set at WSJ Prime + 2% (frozen at 6.75%), with a 1% origination fee at closing. The organization is staffed by BPDA personnel and governed by an independent Board of Trustees, with no proprietary technology layer.

BLDC's revenue model consists of interest income on its loan portfolio, loan origination fees, and periodic grant funding (notably a $693,000 CARES Act grant in 2020). Over 20 years, BLDC has disbursed more than $20 million in loans, leveraging an additional $95 million through collaborations with CDFIs and local banks, and has helped create or retain over 3,500 jobs. Its customer base is intentionally weighted toward minority, immigrant, and women-owned businesses (63% of borrowers), with 25% being Black-owned. Its affiliated entity, the Boston Industrial Development Financing Authority (BIDFA), extends the franchise into tax-exempt and taxable bond financing for nonprofits and manufacturers, having issued nearly $572 million in bonds since 1972. The go-to-market model is community-led, relying on partnerships with BECMA, Amplify Latinx, Harvard Law School clinics, and other local organizations, supported by events, webinars, and Spanish-language outreach.

Name

Boston Local Development Corporation (BLDC)

Legal name

Boston Local Development Corporation

Website

https://bostonbusinessloans.org

Company type

Private

Founded year

1982

Operating status

Operating

Short description

Boston Local Development Corporation (BLDC) is a 501(c)(3) nonprofit, founded in 1982, that provides small business loans of $40,000-$250,000 to for-profit businesses in Boston, with a focus on minority, immigrant, and women-owned borrowers, and operates under the Boston Planning & Development Agency.

Ownership category

akta.pro rank

Product category

Small Business Lending & Community Development Finance

NAICS

Mortgage and Nonmortgage Loan Brokers (52231)

SIC

Short-Term Business Credit Institutions (6153), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

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

Keywords

• Small business lending
• Community development finance
• Nonprofit lending
• Gap financing
• Municipal bond financing

Headquarters

HQ city

East Boston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Others, Marketing or Sales, Infrastructure

Revenue model

1. Loan Interest: BLDC generates revenue through interest on small business loans. The benchmark rate is WSJ Prime plus 2%, currently 6.75%. Interest income supports organizational operations and program delivery.
2. Loan Origination Fees: BLDC collects a 1% fee at loan closing. Additionally, borrowers are responsible for attorney and other closing expenses.
3. CARES Act Grant Funding: BLDC received a $693,000 CARES Act Recovery Assistance grant from the U.S. Department of Commerce's Economic Development Administration (EDA) to capitalize a Revolving Loan Fund for coronavirus-impacted small businesses.

Pricing tiers

Go-to-market motion3 records

Distribution channels2 records

Marketing channels6 records

Core offering

BLDC provides direct small business loans ranging from $40,000 to $150,000 (and up to $250,000 under the Backstreets program for industrial/manufacturing borrowers) to for-profit businesses located in or relocating to the City of Boston. Through its affiliate BIDFA, the organization also issues tax-exempt bonds for nonprofits, tax-exempt industrial development bonds for manufacturers, taxable bonds, and the Tax Exempt Lease Program (TELP) for energy-efficiency financing at Boston nonprofit institutions.

Product overview

Boston Local Development Corporation (BLDC) operates as a unified small business financing program consisting of two core lending products: the Standard BLDC Loan (ranging from $40,000 to $150,000) for service, industrial, and manufacturing businesses, and the Backstreets Boston Back-up Loan Program (up to $250,000) for industrial and manufacturing sectors. BLDC's affiliate, the Boston Industrial Development Financing Authority (BIDFA), provides bond financing programs including tax-exempt bonds for nonprofits, tax-exempt industrial development bonds for manufacturers, taxable bonds, and the Tax Exempt Lease Program (TELP) for energy-efficiency projects. Together, these offerings provide gap financing through subordinated debt to small businesses and institutions in the City of Boston.

Differentiator

Problem solved

Functional benefit

Products and services

• Standard BLDC Loan Direct loan program for existing businesses, new ventures, and businesses relocating to the City of Boston, with loan amounts from $40,000 to $150,000, interest rate of WSJ Prime + 2% (frozen at 6.75%), and a 1% closing fee. Use of funds covers working capital, property purchase, leasehold improvements, equipment, expansion, and inventory.
• Backstreets Boston Back-up Loan Program Financing program for Boston companies in the industrial and manufacturing sectors with loan amounts up to $250,000 at the same interest rate structure as the standard BLDC loan. Designed to address capital needs for equipment, machinery, and facility expansion in industrial and manufacturing operations.
• Tax-Exempt Bonds for Non-Profits (BIDFA) Tax-exempt bond financing issued by BIDFA for 501(c)(3) nonprofit organizations to finance construction, expansion, equipment, and other capital needs. Provides significant interest cost savings relative to taxable financing.
• Tax-Exempt Industrial Development Bonds for Manufacturers (BIDFA) Tax-exempt industrial development bonds (IDBs) issued by BIDFA for manufacturers in Boston to finance acquisition, construction, expansion, and capital expenses.
• Taxable Bonds (BIDFA) Taxable bond issuance through BIDFA for businesses and institutions that do not qualify for tax-exempt financing.
• Tax Exempt Lease Program (TELP) Affordable energy-efficiency financing program for Boston-based nonprofit institutions with no up-front costs, administered by BIDFA in partnership with approved performance contractor GreenerU to identify and implement energy-efficiency upgrades.

Quantifiable outcome

• $20 million in loans over 20 years, leveraging $95 million in additional funding and creating/retaining 3,500+ jobs
• +2 more outcomes

Named customers15 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eleven partnerships are on record, tiered core and minor.

• Boston Industrial Development Financing Authority (BIDFA)coreStrategic or Co-development Partner · 1 January 1972BIDFA is BLDC's sister organization and affiliate. Both operate under the City of Boston. BIDFA promotes economic growth through bond issuance for businesses and institutions, while BLDC focuses on small business loans. Both are staffed by BPDA employees.
• Economic Development and Industrial Corporation of Boston (EDIC)coreStrategic or Co-development Partner · 1 January 1972BIDFA was constituted as a board of the City of Boston in 1972 and began work as an affiliate of EDIC. EDIC is the parent economic development entity.
• Boston Planning & Development Agency (BPDA)coreImplementation/ SI/ Consulting PartnerBPDA provides day-to-day operational support for BLDC programs through its Financial Services department. BLDC operates in coordination with BPDA's economic development mission.
• Community Development Financial Institutions (CDFIs) and Local BankscoreStrategic or Co-development PartnerBLDC collaborates with CDFIs and local banks in Massachusetts to provide gap financing through subordinated debt. These partnerships have helped leverage over $95 million in additional funding.
• GreenerUminorStrategic or Co-development PartnerGreenerU is an approved performance contractor for BIDFA's Tax Exempt Lease Program (TELP), working with Boston nonprofits to identify and implement energy efficiency upgrades.
• Amplify LatinxcoreGTM or Marketing PartnerPartnership for Spanish-language outreach and the PowerUp Program, providing personalized business advice and access to capital resources for Latino-owned businesses.
• Black Economic Council of Massachusetts (BECMA)coreGTM or Marketing PartnerBLDC partners with BECMA for events like Massachusetts Black Expo to promote small business loans and reach Black entrepreneurs.
• Transactional Law Clinics at Harvard Law SchoolminorImplementation/ SI/ Consulting PartnerJoint webinars on legal basics, contracts, and diversity business certifications for small business owners.
• U.S. Small Business Administration (SBA)minorGTM or Marketing PartnerBLDC works with SBA to provide small business loans and shares information about SBA programs at events and workshops.
• Massachusetts Growth Capital Corporation (MGCC)minorGTM or Marketing PartnerBLDC participates in MGCC grant assistance programs and refers businesses to MGCC resources.
• BDC Capital / CDC New EnglandminorStrategic or Co-development PartnerBDC Capital provides SBA 504 program financing through their affiliate CDC New England (formerly MassCertified).

Scale indicators9 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Kiva: Global nonprofit crowdfunding platform providing 0% interest loans to small businesses, including underserved entrepreneurs. Comparable borrower base and impact-driven lending model.
• Grameen America: Microfinance nonprofit providing small business loans to women entrepreneurs in underserved U.S. communities. Comparable community-lending approach and focus on minority/women-owned businesses.
• Boston Impact Initiative: Boston-area place-based impact investing fund supporting local small businesses and nonprofits. Directly comparable geography, mission, and target borrower base to BLDC.
• CDC New England (BDC Capital): Certified Development Company providing SBA 504 financing in Massachusetts. Named BLDC partner for SBA 504 program delivery; directly comparable as a small-business and real-estate lender in the same geography.
• Ascendus: National CDFI providing loans and financial education to underserved small business owners. Mirrors BLDC's mission-driven, community-focused small business lending model.
• Massachusetts Growth Capital Corporation (MGCC): State-chartered economic development lender providing small business loans and grants across Massachusetts. Closely comparable to BLDC in mission, geography, and borrower profile, and explicitly listed as a referral partner.

Broad incumbents

• Capital Impact Partners: National CDFI providing capital and capability-building to underserved communities. Comparable in mission and product set, but operates at significantly larger scale and broader geographic scope than BLDC.
• Opportunity Finance Network: National membership and capital intermediary for CDFIs. Indirect peer as the broader ecosystem and capacity builder of which BLDC and similar community lenders are members.

Regional players

• Coastal Enterprises Inc (CEI): Maine-based CDFI providing small business and community development financing. Operates a similar nonprofit small business lending model but in a different geography.
• Cambridge Savings Bank: Massachusetts community bank active in small business lending and SBA programs. Overlaps with BLDC in borrower geography and product set, though as a regulated depository rather than a nonprofit lender.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xtwitter.com/BLDCLoans
• LinkedInlinkedin.com/company/bldc

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries1 record

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 Boston Local Development Corporation (BLDC)