How does SEED loan compare with small business or other types of loans?
SEED was established in recognition of the seed-stage capital gap in which capital tends to be unavailable or expensive for companies. To promote the development of renewable energy technologies and in turn the growth of the renewable energy cluster in MA, MTC created the SEED Initiative to provide capital on more favorable terms to seed-stage firms engaged in product development. A SEED loan is offered with a low interest rate. In addition, it is unsecured and does not require interest payments during the 5-year note term. Finally, the convertible loan is meant to encourage companies to focus on product development and fundraising from private sources. Other favorable terms can be found in the SEED term summary.
