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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 Minnesota with the opportunity to participate in an innovative development financing organization as a means of helping small 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 their local small 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 banks and other commercial 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 Now Serves All of Minnesota!
Effective October 1, 2010, MCCF Membership is open to all local governments and economic development organizations in Minnesota, with no cost to join. With membership deposits ranging from $25,000 to $250,000, communities and local agencies of all sizes now have the opportunity to offer flexible financing solutions to the small businesses they serve.
Our Lending History
MCCF opened for business and began accepting loan applications in February 2003. The Fund currently has 70 active members, which represent more than 600 communities throughout Minnesota. To date, MCCF has closed 91 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). With an average loan size of $403,000, MCCF has approved a total of more than $36 million in loans during our eight year history. In recent years, MCCF has approved subordinated, long-term debt financing for projects that include manufacturing plant expansions, a veterinary clinic, a resort expansion, an assisted living / nursing facility, a sporting goods business, dental office, hardware store, environmental testing lab, and the expansion of a medical center support business. Several 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.
Demand for MCCF Loans Remains Soft With national capital markets still in turmoil and the U.S. economy recovering slowly from the worst recession since World War II, demand for MCCF loans has been limited since the 4th Quarter of 2008. However, as small businesses begin to plan for future growth and new opportunities, 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 online by clicking "Loan Application" above. For a list of our members, click on "Membership".
MCCF Holds 8th Annual Meeting The Minnesota Community Capital Fund held its eighth annual membership meeting in September 2010 at Breezy Point Resort, with representatives of MCCF member communities and economic development organizations from throughout Greater Minnesota attending. Barb Hayden, St. Louis County Planning Director, was reelected to another three-year term representing Class A Memberrs. Barb also will continue to serve as Chair of the Board during FY 2011. For a complete list of Board members and MCCF staff, click on "About the Fund" above. 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 with $250,000 Start-up Grant 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 / Retired 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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