To participate in Banking Partners, bank lenders agree to:

1. Accept referrals of small business applicants from not-for-profit small business assistance providers that will work with the businesses to more effectively apply for financing. Lenders will also refer businesses that need additional assistance to small business assistance providers for counseling and/or training.



2. Offer loans at a rate below the lender’s typical market rate. For example, if a lender were to offer a rate reduced by 50 basis points and its standard rate is prime plus 50 basis points, the lender would charge the prime rate.



3. Offer smaller loans than those generally offered on a market basis. For example, lenders with a minimum loan amount of $50,000 could offer loans at $25,000. Lenders are encouraged to consider loans as low as $5,000.



4. Consider financing early-stage businesses.



5. Identify at least one contact person who will be the primary contact for small businesses seeking financing under Banking Partners.



6. Report annually to the Massachusetts Community & Banking Council (MCBC) on Banking Partners lending activity, including verification that the lender continues to comply with the Banking Partners program guidelines.

Underwriting and lending decisions are exclusively made by each lender on a case-by-case basis and lenders select their own targeted geographic area(s). In many cases, lenders already have a product that qualifies for the Banking Partners program. Lenders do not need to create a new product.

Participating banks can request a guarantee from the Small Business Administration, MassCap or other programs if a credit enhancement is needed in order to make the loan.

The Massachusetts Division of Banks has determined that participation in Banking Partners a qualified activity under the lending test and/or the service test of the Massachusetts CRA.

To participate in Banking Partners, banks must complete the Massachusetts Banking Partners sign-up form and Bank Product Description form

For further information on participating in Banking Partners, lenders can contact Esther Schlorholtz at Boston Private Bank & Trust Company at eschlorholtz@bostonprivatebank.com or (617) 912-4209.

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