2015.11.04 EDC Packet Combined - Laserfiche WebLink

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Open to Business Impact: Technical Assistance and Loans When MCCD launched the Open to Business Program in 2011, we served only four communities. Now we are under contract to serve 48 municipalities and will soon bring that number to 67. Open to Business describes our ongoing efforts to provide busi- ness advice and financing to both new and maturing small busi- nesses in partnership with metro - area municipalities. Through these partnerships, we help local governments create their own business support programs tar- geted at residents and entrepre- neurs in their communities. Open to Business has helped hundreds of entrepreneurs with technical assistance and helped scores of them with financing. Starting or expanding a busi- ness is not easy, which is why the technical assistance MCCD offers is as valuable as financ- ing. In 2014 Open to Business advisors provided nearly 4,000 hours of help to over 740 en- trepreneurs. MCCD's Lending Program pro- vides a range of products tai- lored to the needs of small business, from micro -loans to help a new entrepreneur start a business to large loans of $150,000 or more to help a growing business fill a financ- ing gap on a multi-million dollar real estate project. In 2014 MCCD provided 57 small business loans totaling $1.66 million. While the vast majority of our borrowers were early-stage businesses, 25% of our loans were made to second stage businesses that received larger loans averaging nearly $78,000. MCCD's direct loans leveraged another $20.7 million in capital from other sources including banks, our community lending partners and owner equity. On average every $1 of MCCD di- rect loan leveraged $12.50 in other financing, an efficient use of our funds. CREDIT BUILDING PROGRAM I According to Karen Reid, executive director of Neighborhood Development Alliance (NeDA , "the credit builder program TOMINUS may have just as big an impact on individual lives as MCCD's business loans." MCCD's Mission: That's because poor credit has a huge negative impact on many aspects of an individual's life, from whether or not he or she can rent an apartment, find affordable car insurance, To work collectively secure a loan at a reasonable rate, or sometimes, even to get hired for a job. Partnering with five nonprofit credit to build strong com- counseling agencies including NeDA, MCCD offers credit building loans to help disadvantaged and low income indi- munities by leverag- viduals improve their credit scores. ing resources for the In 2014, we made 108 credit building loans, bringing the total to 308 since the program began in 2009. development Of peo- Even though they face many challenges, most borrowers pie and places, work hard to pay their loans on time. On average they are increasing their scores by 35 points over a 12 month peri- od, with some borrowers seeing even larger gains. Open to Business Impact: Technical Assistance and Loans When MCCD launched the Open to Business Program in 2011, we served only four communities. Now we are under contract to serve 48 municipalities and will soon bring that number to 67. Open to Business describes our ongoing efforts to provide busi- ness advice and financing to both new and maturing small busi- nesses in partnership with metro - area municipalities. Through these partnerships, we help local governments create their own business support programs tar- geted at residents and entrepre- neurs in their communities. Open to Business has helped hundreds of entrepreneurs with technical assistance and helped scores of them with financing. Starting or expanding a busi- ness is not easy, which is why the technical assistance MCCD offers is as valuable as financ- ing. In 2014 Open to Business advisors provided nearly 4,000 hours of help to over 740 en- trepreneurs. MCCD's Lending Program pro- vides a range of products tai- lored to the needs of small business, from micro -loans to help a new entrepreneur start a business to large loans of $150,000 or more to help a growing business fill a financ- ing gap on a multi-million dollar real estate project. In 2014 MCCD provided 57 small business loans totaling $1.66 million. While the vast majority of our borrowers were early-stage businesses, 25% of our loans were made to second stage businesses that received larger loans averaging nearly $78,000. MCCD's direct loans leveraged another $20.7 million in capital from other sources including banks, our community lending partners and owner equity. On average every $1 of MCCD di- rect loan leveraged $12.50 in other financing, an efficient use of our funds.