An Act to establish the Massachusetts loan loss guarantee program for community development financial institutions

This bill establishes the Massachusetts Loan Loss Guarantee Program, which provides state-backed guarantees covering up to 80% of eligible loan losses for community development financial institutions (CDFIs) and nonprofit/non-traditional lenders. The program prioritizes loans supporting microbusinesses, small businesses in low-income communities, Gateway Cities, minority-owned, women-owned, and socially/economically disadvantaged enterprises. It is funded through state appropriations, lender fees, private contributions, and other sources, with participating lenders required to offer technical assistance for improved risk management. The program requires annual reporting to the legislature and creates an advisory board with stakeholder representation to guide implementation.