3.9. SR 07-15-2002 - Laserfiche WebLink

Home Browse Search

The Minnesota Community Capital Fund (MCCF), a new nonprofit organization, is offering local communities and economic developmen organizations throughout Greater Minnesota an opportunity to participate in an innovative new development financing resource. This flexible loan fund ts designed to leverage millions of dollars in underutilized local Revolving Loan Fund (RLF) capital. Through the pooling of RLF resources, the IVlCCF (the "Fund") will provide participants with greater lending flexibility, the capability of offerSn7 much larger loans than would be possible with limited existing local resources, and professional fund management services. MCCF Organizational Structure The MCCF is a Minnesota nonprofit corporation that is organized and will be operated exclusively for purposes consistent with Section 50.1.(c)(3) of the Internal Revenue Code. · Entities that participate through the contribution of funds to the MCCF loan pool will become members of the corporation. · The business and affairs of the corporation will be under the direction of a nine-member board of directors. · The corporation has three classes of members, with each class of members having the authority to elect two directors to serve on the board. · In addition to the six directors elected by the membership, the elected directors will appoint three at-large directors to the board. Participation Levels In order to encourage communities and organizations of all sizes to become members, the MCCF is offenng three participation levels: · Class A memberships--contributions of $100,000 or more. · Class B memberships---Contributions of at least $50,000, but less than $100,000. · Class C memberships--contributions of at least $25,000, but less than $50,000. Participation in the Fund shall be subject to approval by the Board ~of Directors a the execution of a written participation agreement. Benefits of Membership As a self-governed organization, the MCCF will offer its members a great deal of flexibility in structuring loans that support business and affordable housing development in their respective communities. · Members will have the capacity to originate loans of up to ten times the amount they contributed to the Fund. · The professional fund manager will work closely with members, prospective borrowers, and other lenders in analyzing and structuring financing deals that will best meet the needs of both borrowers and lenders. · In addition to overall fund administration, the MCCF fund manager will be · responsible for loan closings and negotiating the sale of loans to the secondary market. · All of the paperwork and report filings required under the Minnesota business subsidy law will be handled by the fund manager, which will allow members to focus their time and efforts on other development projects. · Members will have ongoing access to the technical assistance and expertise available from the MCCF fund manager, even for financings that do not utilize the Minnesota Community Capital Fund as a resource. · In addition to the loan pool capitalized by member contributions, the MCCF intends to offer members access to other financing resources in the future. Specifically, an application is now pending for US Treasury. Department certification of the MCCF as a Community Development Financial Institution (CDFI). Once certified, the Fund will apply for Federal funds to support the expansion of MCCF's economic development mission.