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Western Massachusetts Enterprise Fund Inc.

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Western Massachusetts Enterprise Fund Inc.

Hot Mama’s, Springfield, MA

[Pullout: Man mixing ingredients at Hot Mama's ]
Man mixing ingredients at Hot Mama's

When Hot Mama’s, a company that makes salsa, hummus, and other gourmet food products, was founded in 1984, it was housed in a tiny, 500-square foot facility in Millers Falls, Mass. In 1991, Matt Morse bought the company, moved it to Amherst, and set out to grow the business while maintaining a commitment to using fresh, all natural ingredients, providing great customer service, and engaging in business practices that reflect integrity and respect for the environment.

A $10,000 microloan from the Western Massachusetts Enterprise Fund (WMEF) enabled Mr. Morse to buy a cooler and some other equipment for Hot Mama’s new Amherst home, and helped him to gain a stronger foothold in an emerging market. His success prompted him to return to WMEF for another loan of $15,000 that facilitated the second of what would be four expansions of his Amherst facility.
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Those two infusions of capital made Mr. Morse something he had never been: bankable. Indeed, in 1994, he received a loan from the Bank of Western Massachusetts, which he used to buy new equipment, but primarily to pay off his WMEF loans.

WMEF has been helping “unbankable” clients like Matt Morse since 1990. A leading microlender, the organization provides loans of $1,000 to $150,000 to finance start-ups, existing businesses, and nonprofits that may not qualify for traditional loans. WMEF serves the five counties of western Massachusetts and has provided financing to more than 250 small businesses and technical assistance to hundreds of entrepreneurs.

Today Hot Mama’s has built a loyal customer base in the natural and gourmet food categories, moved to even larger quarters in Northhampton, Massachusetts, and even established operations in Chicago. The company has 60 employees and enjoys annual sales of $6 million. But Matt Morse has not forgotten how his current success began. “They gave me the chance to take those first few steps and establish some credit,” he says of WMEF’s loan officers. “They enabled me to take the plunge and eventually be able to get bank financing.”