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Matched

GRANT 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.

Preference shall be given to low to moderate (LMI) brick-and-mortar small businesses owned by women, minorities, immigrants, non-native English speakers, U.S. military veterans, disabled individuals, members of the LGBTQ+ community, and businesses operating in Massachusetts Gateway Cities.

Download Overview PDF

FUNDING

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, and operational lease. 

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

AWARDS:   Businesses must crowdfund a minimum of $1,500 and a maximum of $20,000 to receive a 2:1 matching grant from MGCC between $3,000 and $40,000. The combination of crowdfunding dollars and 2:1 matching grant from MGCC, businesses can earn $60,000+ through this program.

  • Small Business Technical Assistance (SBTA) Sponsors, Trained Business Advisor, if applicable (optional) – Businesses have the option to apply with an SBTA Sponsor, SBTA Sponsor will receive $250 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. Patrons 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 2:1 MGCC matching grant award. If businesses raise a minimum of $1,500, MGCC will award a matching grant.

  • If businesses that are unable to meet their crowdfunding goal by [the campaign deadline] but have been able to raise a minimum of $1,500, the business will be eligible to receive a 2:1 match from MGCC.
    • E.G., If you commit to fundraising $10,000 on a $30,000 total project on your application by [your campaign deadline] but are only able to raise $7,000 by the [deadline], MGCC will 2:1 match $14,000. Businesses will be required to submit an updated budget after the campaign closes.
    • E.G., If you commit to fundraising $10,000 on a $30,000 total project on your application by [your campaign deadline] and are able to raise $10,000 by the [deadline], MGCC will provide the 2:1 matching grant award for $20,000, bringing the total amount received by the small business to $30,000.
    • E.G., If you commit to fundraising $10,000 on a $30,000 total project on your application by [your campaign deadline] and are able to raise $12,000 by the [deadline], MGCC will provide the 2:1 matching grant award for $20,000 grant requested in your application, bringing the total amount received by the small business to $32,000.
    • If applicable, for grant funded applicants working with SBTA Sponsors, $250 SBTA fee will add total grant match for the grantee. MGCC will cover this $250 fee unless waived by SBTA Sponsor
    • E.g., Applicant's grant match is $10,000. The grant total will be $10,250.
    • $10,000 will be disbursed to the grantee
    • $250.00 SBTA Fee, covered by MGCC, will be paid to the SBTA Sponsor

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
  • Hair Salons/Nail 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. 

TIMELINE

PROGRAM LAUNCHED

June 15, 2021

This will be a rolling application. Existing applications will be reviewed by MGCC on a monthly basis. Applicants can expect to hear back within 2-6 weeks of completed submission of their grant application, including all necessary supplementary documents and information.

NEXT MONTHLY REVIEW DEADLINES

No longer accepting applications. See button below to sign up for Biz-M-Power mailing list

PROGRAM CLOSES

June 30, 2023 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 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
  • Is NOT owned by someone employed by the sponsoring SBTA, if applicable
  • Is NOT a nonprofit, not-for-profit, or charitable organization 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 (business NOT owned by foreign individuals (non-permanent resident) or corporations

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

Before starting: Need help applying?

If you would like to receive technical assistance with your application, we would be happy to connect you with a Small Business Technical Assistance (SBTA) Provider! Submit a SBTA Introduction Request

APPLICATION PROCESS

STEP 1: Apply

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 a monthly basis. Applicants can expect to hear back within six 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

If your crowdfunding campaign reaches its goal OR raises over $1,500 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 2021 or 2022 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 2021 or 2022 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. Request a Certificate of Good Standing
    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

 

QUESTIONS, PLEASE CONTACT: Theresa Ng, Community Project Manager

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

Biz-M-Power is no longer accepting applications.

If you would like to be kept informed of any updates to the program, please join our email list.

JOIN BIZ-M-POWER'S EMAIL LIST

Frequently Asked Questions (FAQ)

Before starting: Need help applying?

If you would like to receive technical assistance with your application, we would be happy to connect you with a Small Business Technical Assistance (SBTA) Provider! Submit a SBTA Introduction Request

What is "crowdfunding"?

Crowdfunding is when businesses, organizations, or individuals fund a project or venture with contributions from many people. By receiving the necessary boost to cash flow, these ventures can get off the ground or launch new projects. Most of these campaigns happen via internet platforms, have set time frames for when money can be raised, and disclose specific monetary goals. 

The crowdfunding platform we are utilizing for this grant program is Patronicity. 

What is "crowd matching" or “crowd granting”?

Crowd matching is between funder, platform, projects and the crowd. At its simplest, matched crowdfunding is the practice of combining funding from an institution, such as a grant from a local authority, with money raised from individual patrons on a crowdfunding platform, to get a project funded. 

Will there be any support provided for marketing my crowdfunding campaign?

Patronicity provides support with ideas and suggestions for best practices and outreach strategy. 

  • If approved by the MGCC review team, Patronicity will then engage fully with the applicant to polish off the project page, develop a marketing strategy, and build out the crowdfunding campaign.
  • Wait for updates on MGCC approval
  • After approval, finalize plans for crowdfunding campaign
  • MGCC will provide material and language to help promote via social media.

Can start ups apply?

Yes. However, your start up must have been operational for at least 3 months.

What is a capital lease?

Definition of a capital lease

Capital lease, also called Financial lease, is a lease agreement which includes the option of to purchase the asset at the end of the lease term, which usually covers more than 75% of the asset’s estimated economic life. If the lessee does not have the option to purchase the asset at the end of the lease term, then it is an operating lease or renting.

How do you define FTE employees?

Full Time Equivalent (FTE) employees = 40 hours, including 1099's

For example:

  • One employee that works 40 hours/week = 1 FTE

  • Two part-time employees that each work 20 hours/week = 1 FTE (because 2 (employees) x 20 hours = 40 hours/week)

What is the full grant program process?

Further details on the grant process can be found in the following languages:

Massachusetts Growth Capital Corporation (MGCC) is a central state resource that offers working capital, loan guarantees, and targeted technical assistance to solve specific financial and operational problems for small businesses with attention to businesses in underserved, Gateway Cities and low-to-moderate income communities that are owned by women, immigrant, veteran, and minorities. MGCC works with traditional financial institutions to make challenging loans bankable, working with community development corporations and other non-profits to provide financing for job-producing projects, and for assisting a wide range of small businesses to find the growth capital they require.

Projects