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Agenda - Economic Development Authority - 04/13/2005
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Agenda - Economic Development Authority - 04/13/2005
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4/14/2025 1:32:30 PM
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4/7/2005 11:37:12 AM
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Meetings
Meeting Document Type
Agenda
Meeting Type
Economic Development Authority
Document Date
04/13/2005
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TWIN CITIES COMMUNITY <br /> CAPITAL FUND <br /> <br />Economic Developnlent Financing <br />for Growing, Businesses <br /> <br />Membership enrollment will soon be underway for the Twin CiO'es Community Capita/ <br />Fund (TCCCF), a new economic development financing resource for .the seven county <br />Twin Cities Metropolitan Area. The purpose of the TCCCF is to leverage millions of dollars <br />in Revolving Loan Funds (RLFs) and other economic development funds owned and <br />managed by metro area local governments and development financing organizations. By <br />pooling resources, TCCCF members will have the advantage of offering much larger loans <br />than would be possible with limited local resources, greater gap-lending flexibility for <br />financing local development projects, and significanUy lower loan risk~ll with the <br />support and services of a professional fund manager and experienced loan officers at no <br />cost to Fund members. <br /> <br />How will the Fund work? <br /> <br />The TCCCF is a new Minnesota nonprofit membership corpora#on that will be <br />governed by representatives of its member organizations. <br /> <br />Three membership/evels are available. The minimum membership investment is <br />$200,000 for Class A shares, $100,000 for Class B shares, and $50~000 for Class C <br />shares. You choose the membership level that best fits your organizational needs. <br />The Fund will begin operating once the initial $2 million capitalization goal has <br />been reached. <br /> <br />Members will be able to originate loans of up to ten #rnes the amount they have <br />on deposit with the Fund. For example, a Class B member who deposits $100,000 <br />in the Fund can originate loans of up to $1,000,O00--with no//mit on the number <br />of /oans that any one member can originate. <br /> <br />The TCCCF will be a se/f-susta/ning financing resource. Recapitalization of the <br />Fund will be through the sale of pre-approved loans to a national secondary <br />market, which ensures that the Twin Cities Community Capital Fund will always <br />have money to lend! <br /> <br />Members will determine which projects they wish to support through the TCCCF <br />· Loan Fund, which can be used as a .~_Tap-finandng source for most local economic <br />development projects. <br /> <br />13 <br /> <br /> <br />
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