Laserfiche WebLink
Participation in MCCF <br />July 8, 2002 <br />Page 2 of 2 <br /> <br />Staff recommends an initial deposit of $50,000, which would allow the city to originate loans <br />up to $500,000. There is no limit on the number of loans that a MCCF member can <br />originate. Members are able to increase their stake in the fund at any time in order to meet <br />changing needs. <br /> <br />Staff believes this is a valuable and unique opportunity to fund economic and housing <br />development. There are very few tools at our disposal for development and this fund begins <br />to address those needs. <br /> <br />Membership in the fund is subject to the attached Participation Agreement and Loan Fund <br />Escrow Agreement, which require members to make a minimum 3-year commitment to the <br />MCCF. At the end of the 3-year period, all funds contributed will be returned, without <br />interest, upon written request of the member. <br /> <br />Projects will be required to complete an MCCF application to be considered per the attached <br />MCCF Loan Criteria. Applications may be imfially reviewed by the EDA's Finance <br />Committee for recommendation to the EDA. <br /> <br />Requested Action <br />Authorize the Executive Director to execute the necessary documents relating to <br />participation in the Minnesota Community Capital Fund, and deposit $50,000 from Micro <br />Loan funds towards this fund. <br /> <br />S:NEDA~MicroLoan~MCCFN7-8-02.DOC <br /> <br /> <br />