North County chamber to finance small biz growth

Roy Nascimento, president & CEO at North Central Massachusetts Chamber of Commerce

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Roy Nascimento took over as leader of the North Central Massachusetts Chamber of Commerce one year ago, succeeding David L. McKeehan, the North Central chamber’s only chief executive since its founding 32 years ago. In the past year, Nascimento has worked to grow the lending capabilities of the North Central Massachusetts Development Corp., in order to create an economic culture conducive to small businesses and innovation.

How have you shaped the chamber’s role in the past year?

We are big proponents of regionalism. We recognize that working together we can accomplish a lot more than working individually. Our role is to help bring our communities together, help leverage the limited resources that are available, and help advance the economy in Central Massachusetts.

What are some of the initiatives you are undertaking to grow the north central region’s economy?

We have established the Johnny Appleseed Trail Association. We help market the 26 communities in North Central Massachusetts to visitors, to people with a little jingle in their pocket. We recognize there is a lot of economic impact from tourism, and we are very active in targeting certain markets that are naturals for the region. We bring group tours and tourism to the region. Tourism now accounts for 800 jobs, and there is a $22-million economic impact. That continues to grow every year.

What are the other industries you are targeting?

We also focus a lot on manufacturing. We have the highest concentration of manufacturing in the state. One in every four jobs in the region is related to manufacturing, so that is a very important industry and a very vibrant industry in our region. We want to see it continue to grow.
The other strategic focus is on small businesses. It is well known that small businesses are the driver in our national economy. We want to encourage a culture of entrepreneurship and business in the region.

How do you support those small businesses financially?

Through our development corporation, we are a microloan provider. Since 1996, we have provided over $2.4 million in loans. These are small business loans ranging to $5,000 to $50,000.
We are running out of capital, and we are making an effort to raise new capital to make more loans because there is a need in the region. This past year, we were approved as a [U.S. Small Business Administration] microloan intermediary. With that, we received a $500,000 loan from the SBA, and we are using that to make loans to small businesses in the region.
We also have applied to the U.S. [Department of Agriculture] to be a microloan intermediary with the USDA. That will allow us to make USDA loans to small businesses in the area, upwards of $100,000.

What types of businesses are seeking those microloans?

Generally, they tend to be businesses that are risky from a traditional lending standpoint. They could be startups that don’t have a track record..They don’t have collateral. They might have bad credit. They tend to be riskier loans, which is why they have difficulty getting loans from banks.

Do you worry about making those risky investments?

We do tend to have higher default rates. They are riskier loans. That is a challenge, but our default rates have been below the norm. They are microloans, though. We aren’t lending out $2 million. The highest loan we make now is $75,000.

Where, then, will the economic growth come from?

North Central Massachusetts is very well positioned for growth in the future, and we are convinced the region will see that growth because of the tremendous growth that is happening in Boston. We have been seeing the development from Boston pushing out over the years, first to Route 128 and then to 495. Those regions are running out of land, and we have land available that is very affordable. We also have a very skilled workforce of employees. Plus, we have the cultural amenities and the proximity to Boston.
We have a lot of elements in place to position us for future growth.