Healey-Driscoll administration launches low-interest financing initiative to help cities and towns advance infrastructure, clean energy and climate resilience projects while maximizing federal funding.
BOSTON— The Healey-Driscoll administration has opened applications for Build for Mass, a new $75 million revolving loan program designed to help Massachusetts cities and towns finance critical infrastructure improvements, clean energy investments and economic development projects.
Administered by MassDevelopment, the program will provide flexible, low-interest loans to help municipalities cover upfront costs, close financing gaps and access federal funding for projects that might otherwise face delays. Gateway Cities and rural communities will receive priority as the state seeks to expand access to affordable financing across Massachusetts.
Governor Maura Healey said the initiative is intended to help communities move projects forward more efficiently while reducing costs for residents.
“Through our new $75 million Build for Mass program, we’re helping communities access affordable financing, make the most of federal funding and move forward with critical infrastructure and clean energy projects,” Healey said. “We want every community in Massachusetts to have the resources they need to grow and thrive.”
Lieutenant Governor Kim Driscoll, who announced the program in July, said the financing mechanism addresses a challenge familiar to municipal leaders: securing the upfront capital needed to complete essential projects.
“As a former mayor, I know firsthand how challenging it can be for cities and towns to find the funding they need to move important projects forward,” Driscoll said. She added that Build for Mass will give local leaders another tool to improve infrastructure and help lower energy costs for residents.
Two loan programs target infrastructure and clean energy
Build for Mass will offer two financing options tailored to different municipal needs.
The General Loan Program will provide low-interest financing to help municipalities bridge funding gaps associated with federally funded infrastructure projects. Eligible projects may include neighborhood revitalization, seawalls and other community improvements.
The Green Loan Program will provide bridge financing for eligible municipal clean energy projects that qualify for the federal Direct Pay program, which allows eligible entities, including municipalities, to receive reimbursements through applicable federal clean energy tax credits.
Potential projects include battery energy storage systems and ground-source heat pumps, which can improve energy efficiency, reduce long-term operating expenses and strengthen the resilience of public buildings. Private entities serving a public purpose, such as health clinics, may also qualify for the Green Loan Program.
Energy and Environmental Affairs Secretary Rebecca Tepper said the initiative will help municipalities address financing gaps that can prevent clean energy projects from moving forward and make better use of available federal resources.
Elizabeth Mahony, commissioner of the Department of Energy Resources, said combining low-cost loans with federal tax credits could help municipalities stretch their budgets while investing in technologies that reduce energy costs over time.
State commits $75 million to long-term investment
The program’s funding comes from two state sources.
A total of $50 million will come from the Massachusetts Federal Matching and Debt Reduction Fund, established through legislation proposed by Healey to help Massachusetts compete for federal funding.
An additional $25 million from the Department of Energy Resources, in partnership with the Executive Office of Energy and Environmental Affairs, will support clean energy projects and efforts to lower long-term energy expenses.
The structure is intended to help communities access capital before federal reimbursements or other funding become available, allowing eligible projects to advance without requiring municipalities to shoulder all upfront costs.
Quentin Palfrey, director of federal funds and infrastructure, said opening applications marks a step toward giving communities practical tools to overcome financial barriers, advance local priorities and maximize federal dollars.
Economic Development Secretary Eric Paley, who chairs MassDevelopment’s board of directors, said reliable infrastructure helps businesses invest and communities grow. He noted that the revolving structure will allow repaid funds to finance additional projects, extending the program’s impact beyond its initial allocation.
Revolving fund designed to support projects for 20 years
MassDevelopment will oversee underwriting, loan servicing and compliance for Build for Mass. As borrowers repay their loans, the money will return to the fund and be made available for new projects.
The state expects this model to support multiple rounds of infrastructure investment over the next 20 years, allowing the initial $75 million commitment to benefit communities beyond the first group of borrowers.
MassDevelopment President and CEO Navjeet Bal said the agency looks forward to working with municipalities across the state to deliver financing for infrastructure improvements and affordable energy upgrades.
Climate Chief Melissa Hoffer also highlighted the program’s potential to help municipalities, nonprofits and businesses incorporate battery storage and geothermal systems into building projects, potentially delivering long-term energy savings.
For Massachusetts communities, the initiative offers a financing option intended to bridge the gap between identifying a critical local need and securing the capital required to address it. By combining state-backed loans with eligible federal funding and tax incentives, Build for Mass aims to accelerate infrastructure improvements, expand clean energy adoption and strengthen municipal budgets.
Applications are now open through MassDevelopment. More information about the program and application requirements is available through the agency’s official website at massdevelopment.com.
