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HOUSE DOCKET, NO. 3217 FILED ON: 1/16/2025
HOUSE . . . . . . . . . . . . . . . No. 1348
The Commonwealth of Massachusetts
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PRESENTED BY:
Bud L. Williams
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act to establish the Massachusetts loan loss guarantee program for community development
financial institutions.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Bud L. Williams11th Hampden1/16/2025Jacob R. OliveiraHampden, Hampshire and Worcester2/11/2025 1 of 4
HOUSE DOCKET, NO. 3217 FILED ON: 1/16/2025
HOUSE . . . . . . . . . . . . . . . No. 1348
By Representative Williams of Springfield, a petition (accompanied by bill, House, No. 1348) of
Bud L. Williams and Jacob R. Oliveira for legislation to establish a loan loss guarantee program
within the Massachusetts Development Finance Agency for certain community development
financial institutions and other nonprofit and non-traditional lenders. Financial Services.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act to establish the Massachusetts loan loss guarantee program for community development
financial institutions.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 “An Act to establish the Massachusetts loan loss guarantee program for community
2development financial institutions” establishes a loan loss guarantee program for community
3development financial institutions and nonprofit and non-traditional lenders, including an
4advisory board of stakeholders including Amplify LatinX, The Boston Foundation, Black
5Economic Council of Massachusetts (BECMA), Coalition for an Equitable Economy (CEE), and
6the Massachusetts Association of Community Development Corporations (MACDC).
7 Bill Text
8 SECTION 1. Chapter 23G of the General Laws, is hereby amended by adding the
9following section:-
10 Section 50: Establishing the CDFI loan loss guarantee program 2 of 4
11 Section 50. (a) There shall be established within the agency the Massachusetts loan loss
12guarantee program for community development financial institutions and other nonprofit and
13non-traditional lenders.
14 (b) The agency, in partnership with the executive office of economic development, shall
15establish and administer the Massachusetts Loan Loss Guarantee Program.
16 (c) The liabilities and obligations of the program shall not extend beyond the monies
17which are held by the agency and shall not constitute a debt or pledge of the faith and credit of
18the commonwealth or any political subdivision of the commonwealth.
19 (c) The program shall:
20 (i) Provide guarantees covering up to 80% of eligible loan losses incurred by CDFIs;
21 (ii) Prioritize loans that serve microbusinesses and small businesses that serve low-
22income communities, Gateway Cities, minority-owned businesses, worker-owned businesses,
23women-owned businesses, and socially or economically disadvantaged enterprises; and
24 (iiI) Include technical assistance and training for participating CDFIs to improve risk
25management and lending practices.
26 (d) The program shall be supported through:
27 (i) Relevant appropriations;
28 (ii) fees assessed on community development financial institutions for guarantee services;
29 (iii) Contributions from private individuals and entities, philanthropic organizations, and
30federal funding opportunities; 3 of 4
31 (iv) Subventions, grants, loans, advances and contributions from any source of money,
32property, labor or other things of value to be held, used and applied in furtherance of this section;
33 (v) Income earned through equity investments, fees, interest, and other income earned by
34the agency and its divisions; and
35 (vi) uspent revenue held by the Transformative Development Fund, growth capital
36division, or other sources identified by the agency or the executive office of economic
37development.
38 (e) To administer the program, the agency shall:
39 (i) Develop criteria for loan eligibility, guarantee terms, and risk-sharing arrangements;
40 (ii) Monitor the financial performance of loans guaranteed under the Program; and
41 (ii) Submit annual reports to the General Court, detailing the Program’s impact, financial
42performance, and recommended improvements within 90 days of the end of the fiscal year.
43 (f) The agency, in collaboration with the executive office of economic development, shall
44convene an advisory board comprising representatives from three leaders of community
45development financial institutions, three leaders of other nonprofit or non-traditional lending
46institutions, two leaders of national banks, two leaders of state-chartered banks, two leaders of
47credit unions, the executive director of the Coalition for an Equitable Economy or their designee,
48the executive director of the Massachusetts Association of Community Development
49Corporations or their designee, the executive director of the Black Economic Council of
50Massachusetts or their designee, the executive director of The Boston Foundation or their
51designee, the director of the growth capital division or their designee, the director of the 4 of 4
52transformational development initiative or their designee, the commissioner of banks or their
53designee, and the house and senate chairs of the joint committee on financial services or their
54designee.
55 (i) The secretary of economic development shall serve as chair and the executive director
56of the agency shall serve as vice chair.
57 (ii) The advisory board may vote to appoint additional ex officio members.
58 (iii) Any advisory board member may appoint a designee to serve in their place.