6.1. EDSR 03-17-2014 - Laserfiche WebLink

Home Browse Search

City of Elk Request for Action River To Item Number Economic Development Authori 6.1 Agenda Section Meeting Date Prepared by General Business March 17, 2014 Brian Beeman,Director of Economic Development Item Description Reviewed by Minnesota Community Capital Fund (MCCF) Jeremy Barnhart,Deputy Director, CODD Reviewed by Action Requested Hear update considering the dissolution of the Minnesota Community Capital Fund (MCCF). Background/Discussion Effective April 30, 2014, the Minnesota Community Capital Fund (MCCF) will be dissolved. The MCCF Board was unable to attract loan purchase commitments from secondary market investors. The Board was also unsuccessful in seeking an amendment to the State Loan Guarantee Program that would provide $7 million in funding for the Program's Trust Fund and add statutory language that would make MCCF loans marketable once again. Elk River joined the MCCF as a Charter Member on August 8, 2002,with a membership deposit of $50,000. MCFF was established to leverage local community resources in order that much larger, risk-free small business gap financing was available in the member communities. With a $50,000 member deposit, Elk River had the ability of sponsoring loans of up to $500,000 each for qualified, credit-worthy small businesses. MCCF did not make any loans in Elk River during the period of the city's membership. The membership deposit will be returned directly by Bremer Bank Investment&Trust; the initial investment was $50,000. Once the deposit is received,it can be put into the Cash Fund and be used to support other projects, such as land purchases or other loan programs. Greg Hohlen,a representative from Bremer Bank,will be available to answer any questions. Financial Impact N/A Attachments ■ Letter from MCCF dated February 21, 2014 Paw IREO AY UREJ