6.0. EDSR 06-10-2002 - Laserfiche WebLink

Home Browse Search

Frequently Asked Questions (FAQ's) Throughout the MCCF concept development stage, interested individuals raised a number of questions concerning iik workings of the Fund. While answers to many of these questions were not available at that time, the project velopment team has subsequently addressed most, if not all of these issues, including the following FAQ's: How large must our organization or community 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 regional economic development organizations that want to increase their development financing capacity. The funds that I have available locally to invest in the MCCF were originally received from the Minnesota Department of Trade and What are economic developers saying Economic Development (DTED) under the Minnesota Investment about the MCCF? Fund grant program. These funds were loaned to a local business and the repayments are being used to capitalize my local revolving loan "The MCCF concept makes a lot of fund (RLF). Can I use this money to join MCCF? sense to me. By pooling revolving loan Yes. The State Legislature enacted an amendment to Minn. Statute fund dollars, smaller communities Will 116J.8731, subd.2 this year that specifically authorizes local government have greater access to development units to do so. capital, and will likely become more actively involved in supporting economic How about using city general fund dollars for this purpose? development in their communities.„ p, again. Minn. Statutes 469.191 authorizes cities and towns to Southern Minnesota Economic Developer ropriate not more than $50,000 annually out of their general revenue fund for organizations like the Minnesota Community Capital Fund. "I see this (the pooling of loan funds) as a way to make more money available to Most of our local economic development financing resources were provided to our community by DTED through a HUD Small Cities our reglon...WhlCh means more money is Development Block Grant (SCDBG). Is it ok to use this money for our available to every city in the region for MCCF contribution? economic development.” Local EDA Professional Yes. In fact, since the MCCF has been organized to qualify as a Community-Based Development Organization, SCDBG funds can be "I really like the program. From talking contributed with minimal reporting, which will be handled by the Fund to the smaller cities in our area, I've manager. . been told that they like it, too. The sense Once we're a member of the MCCF, can we increase our initial the smaller cities have is that their contribution level in order to be able to originate larger loans from money will go a lot further invested in the Fund? the MCCF. I think it could be a very Absolutely. MCCF members will be able to increase their stake in the valuable tool." Countywide Rural Fund at any time in order to meet their changing needs and to make the Development Finance Authority Director 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 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.