Client: Northland Foundation and Minnesota Community Capital Fund

Challenge:

Provide gap financing for low-income individuals, entrepreneurial nonprofits and economic development organizations in rural Minnesota by helping banks and local government community development agencies collaborate.

Solution: 

The Northland Institute created a new nonprofit economic development loan fund for rural Minnesota communities, now known as the Minnesota Community Capital Fund (MCCF). MCCF membership includes cities, counties, regional development agencies, electric utilities and nonprofit development organizations, who pool their limited local development financing resources together to access a steady stream of loan capital through CRF’s secondary market.

With memberships ranging from $25,000 to $250,000, member organizations can sponsor business loans of up to 10 times the amount of funds they contribute to the pool, up to a maximum of $2.5 million per loan.

Since all MCCF loans are sold to CRF upon closing, the Fund always has money to lend growing businesses in member communities. Based on MCCF’s success, Northland Institute launched Twin Cities Community Capital Fund (TCCCF) in 2005 for the seven country metro area.

Community Impact:

Since CRF began its partnership with the Northland Institute and MCCF in 2002, we have enabled MCCF to fund 76 loans totaling $27,514,079, serve 24 low-income communities in 44 rural areas, and create or retain 1,557 jobs.

To learn more, click here.