2012 AUGUST-MASHPEE EDIC Plan for Executive Park

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u Finance The availability of appropriate sources of business financing is critical to sustaining the economy of Mashpee and greater Cape Cod. Capital is an essential ingredient in every phase of the development of a business enterprise, from startup, to expansion, to maturity. Mashpee must be concerned about the ability of its businesses to access the financing that they need. The regional banking market is moderately competitive, many banks operate in the area and there is a mix of regional and local banks. However, a number of the banks that are active in the area are savings banks that have not traditionally been active commercial lenders. Despite the consolidation that has occurred in the banking industry, the community is still served by a mix of banking institutions, including locally-owned and large "superregional" institutions. There are 13 commercial banks and savings institutions with offices operating in the Cape Cod market. Five institutions--Bank of Boston, Cape Cod Five, Fleet Financial Group, Cape Cod Bank and Trust, and Citizens Bank--control about 70 percent of local banking deposits. The diversity of banking organizations operating on the Cape affords borrowers a number of options in seeking credit. Different types of banks typically fill different market niches in terms of size and types of borrowers. Differences in market focus, lending procedures, and "banking culture" provide more opportunities for borrowers to find banks that mesh with their particular characteristics. Small businesses in Mashpee must go to Falmouth,Hyannis, or Sandwich to meet most of their financing needs. A recent analysis of small business lending by commercial banks completed by the SBA ranked Cape Cod Bank and Trust third in the state of the most "small business friendly" banks, providing some evidence that small businesses have access to local banks that are trying to fill the small business niche. Within the Town of Mashpee are Fleet, Cape Cod Five, and Plymouth Savings Bank. As in other parts of New England,capital availability was severely constrained during the past recession. The regional banking market has experienced substantial institutional restructuring. In part as a result of bank failures, and in part because of the longer-term trend towardbanking consolidation, a number of banks in the region have experienced ownership changes during the past decade. Such changes can lead to short- term disruptions in lending activities and long-term shifts in lending polices and procedures. As new management takes over, there may be cutbacks in lending as management seeks to become familiar,with the local banking market. In some cases, new management is accompanied by changes in the industry or size mix of the loan portfolio, lending procedures and the focus of loan decisions. ® New financing programs being developed by the Economic Development Council will fill some of the 111E financing gaps in Mashpee,particularly in the microloan market. Businesses in Mashpee have access to a wide range of federal, state, and regional resources designed to address financing gaps. The following state financing programs are available to firms in Mashpee. • Secured debt financing through Massachusetts Industrial Finance Agency (MIFA) Industrial Revenue bonds, Massachusetts Government Land Bank industrial real estate financing, and the new Capital Access Program. B Equity or high-risk debt financing through the Massachusetts Technology Development Corporation, the Massachusetts Capital Resource Company, and the Land Bank's New Emerging Technology Fund. • Targeted financing through the Massachusetts Community Development Finance Corporation (minority- and community-based ventures), the Massachusetts Government Land Bank(reuse of surplus government properties), and the Massachusetts Industrial Services Program (defense conversion and general restructuring). e 12