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 71 active members, which represent more than 600 communities throughout Greater Minnesota.

To date, MCCF has approved 98 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 $33 million in loans during our five year history!

During the past year alone, MCCF approved 24 loans--representing nearly $7 million in subordinated, long-term debt financing for projects including six manufacturing plant expansions, a commercial printing plant, two assisted living facilities, a grocery and hardware store, veterinary clinic, rail unloading facility, and the expansion of a food ingredients blending plant . Of these twenty-four loans, eight MCCF 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 three new Class C members in 2007 -- Lac qui Parle County EDA; Renville County HRA / EDA; and, Windom Economic Development Authority.


Demand for MCCF Loans Remains Strong

While national capital markets have been erratic in recent months and the economy has slowed down, demand for MCCF loans continues to be strong. Rural banks and other commercial lenders know that MCCF is a complimentary, flexible lending partner that can help lenders manage their portfolio risk and make it possible for their customers to get the capital they need, when they need it.  

The Minnesota Community Capital Fund held its fifth annual membership meeting in September 2007 at Breezy Point resort, with representatives of MCCF member communities and economic development organizations from throughout Greater Minnesota attending. 

Duane Johnson of Dodge County was reelected to another three-year term representing Class C Members and Barb Hayden of St. Louis County was reelected to serve a second three-year term representing Class A Members. Jennifer Hawkins, Senior Business Analyst for Minnesota Power, was elected as a new Class A representative on the Board. Steve Dusek, President of Prairieland EDC and a charter member of the Board, was appointed to fill the long-vacant at-large seat 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

Back in 2002, 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.

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.