Loan Application

Loan Criteria and Approval Process

One of the primary goals of the MCCF is to provide local communities with significantly greater lending capacity and a more flexible, user-friendly development financing resource than most economic development loan programs. Therefore, the Fund has been designed with relatively few hard and fast rules concerning borrower eligibility, target interest rates, loan terms and conditions, equity requirements, etc. Loans of up to ten times the amount members have contributed to the Fund may be funded through the MCCF. So, a $50,000 investment allows a member to originate loans of up to $500,000.

What’s most important in evaluating any given loan application is:

• Creditworthiness of the borrower.
• Repayment ability based on cash flow analysis.
• Commitment of one or more banks to participate in the financing.
• Support of the local community and MCCF member.

The fund manager will be directly involved in negotiating and structuring every loan package that includes a MCCF loan. Once the originating MCCF member adopts a local resolution in support of the loan application, the request will be submitted to the MCCF Loan Committee, which will consist of five members (appointed by the Board of Directors) who have experience and expertise in reviewing business and/or housing loans. The loan committee will meet on an "as needed" basis in order to expedite the loan review process, and will have the responsibility and final authority for approving, denying, or modifying the loan terms and conditions. Once the loan committee approves a loan, the fund manager will coordinate the loan closing and sale to the secondary market.