How can I secure a startup loan for my catering business in Massachusetts?

The SBA’s 7(a) loan program combines loan guarantees with business coaching and technical assistance, and loan terms are negotiated between the borrower and the participating lender (fdic.gov).

Understand loan programs available

MassDevelopment’s Working Capital loan offers amounts up to $2 million, secured on all company assets, with a 10% fixed interest rate and a 1% fee at commitment and 1% at closing (massdevelopment.com).

MassGrowth Capital Corp. provides business term loans up to $2 million at a 10% fixed interest rate for Massachusetts‑based businesses that cannot obtain traditional funding (gusto.com).

In the most recent fiscal year, SBA 7(a) loans to catering companies had a median approval amount of $125,000 over a 10‑year term, with 30.2% going to businesses two years old or younger (businesslendingbureau.com).

• List each program’s key features and write down which one fits your equipment and cash‑flow needs.

• Contact the program administrators to confirm current eligibility and any special requirements for food service businesses.

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Prepare your business foundation

To start a catering business in Massachusetts you must register your business name with the county clerk and, if forming a corporation, also register with the Secretary of the Commonwealth of Massachusetts (sba.gov).

The Massachusetts SBDC can assist with preparing financial statements and loan applications, but does not provide financing itself (msbdc.org).

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Gather required documentation

Applicants for commercial financing should expect a higher level of documentation than for personal loans, and each lender applies its own internal criteria and risk assessments (uschamber.com).

• Ask the lender to list the documents it wants to review and write down where to submit them.

Apply through the SBA or a private lender

SBA 7(a) loan interest rates in 2026 range from approximately 9.75% to 14.75% depending on the lender and borrower profile (business.com).

• Identify a participating lender that offers SBA 7(a) loans and request a pre‑qualification review.

• Compare the lender’s interest rate range and repayment terms with those of state‑backed programs.

Disclosures

This content is for educational purposes only and is not financial advice. cateringbusinessloans.com may receive compensation from partner lenders, which may influence which products are featured.

Sources

• fdic.gov
• massdevelopment.com
• gusto.com
• businesslendingbureau.com
• sba.gov
• msbdc.org
• uschamber.com
• business.com