3.9. SR 07-15-2002 - Laserfiche WebLink

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Frequently Asked Questions (FAQ's) Throughout the MCCF concept development stage, interested individuals raised a number of questions concerning e workings of the Fund. While answers to many of these questions were not available at that time, the project clevelopment ream has subsequently addressed most, if not all of these issues, including the following IrAQ's: How large must our organization or communi~, be in order to become a MCCF member? There is no minimum size eligibility requirement for organizations or communities to become members of the MCCF. In fact, the Fund is designed for and encourages the participation of communities of all sizes, as well as multi-community and region~ economic development organizations that want to increase their development financing capacity. The fitncls that I have available locally to invest in the MCCF were originally received from the Minnesota Department of Trade and Economic Development (DTED) under the Minnesota Investment Fund grant program. These funds were loaned to a local business and the repayments are being used to capitalize my local revolving loan fitnd (RLF). Can 1 use this money to join MCCF? Yes. The State Legislature enacted an amendment to Minn. Statute 116J.8731, subd.2 this year that specifically authorizes local government units to do so. How about using city general fimd dollars for this purpose? ,s, again. Minn. Statutes 469.191 authorizes cities and towns to appropriate not more than $50,000 annually out of their general revenue fund for organizations like the Minnesota Community Capital Fund. Most of our local economic development financing resources were provided to ottr community by DTED throttgh a HUD Small Cities Development Block Grant (SCDBG). Is it ok to ttse this money for ottr MCCF contribution ? Xes. In fact, since the MCCF has been organized to qualify as a Community-Based Development Organization, SCDBG funds can be contributed with minimal reporting, which will be handled by the Fund manager. Once we"re a member of the MCCF, can we increase our initial contribution level in order to be able to originate larger loans from the Fund? Absolutely. MCCF members will be able to increase their stake in the Fund at any time in order to meet their changing needs and to make the most of this new financing resource. ~e are a member of the MCCF and later decide to terminate our membership, how and when will the funds that we contributed be returned to us? Membership in the fund will be subject to a participation agreement, which will require members to make a minimum three-year commitment to the MCCF. At the end of the three-year period, all funds contributed will be returned, without interest, upon written request of the member.