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Welcome
to the
Minnesota Community Capital Fund The Minnesota Community Capital Fund (MCCF), a nonprofit corporation, provides local communities and economic development agencies throughout rural Minnesota with the opportunity to participate in an innovative development financing organization as a means of helping local businesses and nonprofits secure the capital they need to grow and prosper--when they need it. MCCF is a bank participation loan fund that leverages millions of dollars in underutilized local economic development funds through the pooling of resources. The Fund provides its members with greater lending flexibility and the capability of offering much larger loans to businesses than would be possible with their own limited and restricted resources.
Our Mission The mission of the Minnesota Community Capital Fund is to activate member capital in partnership with lenders to provide flexible business financing solutions. Our Values MCCF will constantly stive to exhibit: Our Vision To be recognized as the premier membership-driven economic development finance organization.
MCCF Celebrates its 6th Anniversary! MCCF opened for business and began accepting loan applications in February 2003. This past year has been another very successful year for MCCF and its 73 active members, which represent more than 600 communities throughout Greater Minnesota. To date, MCCF has approved 101 loans to support projects ranging from the $14 million expansion of the Cloquet Community Hospital (MCCF loan was $2.5 million) to the construction of a new $660,000 nonprofit early childhood daycare center in Red Wing ($64,000 MCCF loan). Overall, MCCF has approved a total of more than $35 million in loans during our six year history! During the past year, MCCF approved 13 loans--representing nearly $5 million in subordinated, long-term debt financing for projects including manufacturing plant expansions, a veterinary clinic, a resort expansion, an assisted living / nursing facility, a sporting goods business, and the expansion of a medical center support business. Three of these loans were made under the federal New Markets Tax Credit program, which offers significantly lower interest rates and even longer term fixed-rate financing than are available under our standard loan program. MCCF also added nine new members during the past year -- Crookston, Glencoe, Lake City, Lac qui Parle County, Mora, Renville County, Silver Bay, Sibley County, and Windom.
Demand for MCCF Loans Weakens with Global Recession With national capital markets in turmoil and the U.S. economy in the worst recession since World War II, demand for MCCF loans has weakened considerably since the 4th Quarter of 2008. However, our rural banking and other commercial lending partners know that MCCF is a complimentary, flexible lending partner that is standing by to help them manage their portfolio risk and make it possible for their customers to get the financing they need, when they need it. MCCF loan applications are available from member organizations and are also available online by clicking "Loan Application" above. For a list of our members, click on "Membership". MCCF Holds Sixth Annual Meeting The Minnesota Community Capital Fund held its sixth annual membership meeting in September 2008 at Breezy Point resort, with representatives of MCCF member communities and economic development organizations from throughout Greater Minnesota attending. Brian Fritsinger, Cloquet City Administrator was reelected to another three-year term representing Class B Members, while Pam Lehmann, Executive Director of Lac qui Parle EDA was elected as a new Class C representative on the Board. For a complete list of Board members and MCCF staff, click on "About the Fund" above. Scott Martin, President, reported that to date the largest MCCF loan is the $2,500,000 loan made as part of the financing package for the $14 million expansion of the Cloquet Community Hospital. The smallest is a $50,000 loan approved for the renovation of a building in Preston for the expansion of a developmental handicapped services business. The Minnesota Community Capital Fund is still accepting new members. The MCCF Board encourages any community or ED organization that has not yet joined the Fund to take another look at the many benefits of belonging to Minnesota's best source for leveraging local business financing resources.
Blandin Foundation Lends Support to MCCF
$250,000 Grant Awarded
Way back in 2002, the Blandin Foundation awarded a $250,000 grant to assist with the start-up of the MCCF and provided the Fund with the working capital necessary to support its operations during the first three years. This critical support from Blandin has made it possible for MCCF to serve its rural market since beginning operations in early 2003. Today, the Fund is fully self-sufficient and has established a broad network of lending partners and members throughout Greater Minnesota!
What are economic developers saying about the MCCF?
"The Minnesota Community Capital Fund is playing a significant role in financing business development in Dodge County and in communities around the state. Nowhere else can local governments leverage their limited capital on a 10-to-1 basis and participate in creative financing packages with very little risk." - Duane Johnson / Director / Dodge County Economic Development Authority "The MCCF organizational structure makes a lot of sense to me. By pooling revolving loan fund dollars, communities of all sizes increase their lending capacity and can become more actively involved in supporting their own economic development." - Judy Bodway / Director of Economic Development / City of Winona "The MCCF is a very valuable tool, which allows participating members to significantly leverage their investment and provide greater lending flexibility, with limited credit risk, for community and economic development projects." - Barbara Hayden / Planning Director / St. Louis County To read what the Minneapolis Star Tribune has said about the Minnesota Community Capital Fund, click here for the newspaper's editorial comment. Click here for the article that ran in their business section.
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