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· The Fund's loan officers will work closely with members, prospective borrowers, <br /> and other partidpating lenders in analyzing and structuring financing deals that <br /> best meet the needs of all parties. The interest rate and terms of all TCCC? loans <br /> are ne~Totz'ab/e, with most loans subordinate to the lead lender in the financing <br /> package. TCCCF staff will prepare all documents for loan dosings' and will <br /> negotiate the sale of all loans to the secondary market, without any cost to <br /> members. <br /> <br />By selling all TCCCF loans to secondary capital markets on an advance <br />commitment basis, the originaUng member $ignififan#y'redufes or can even <br />eliminate potenN'a/ loan loss. ffsk. <br /> <br />TCCCF members will be able to take advantage of the New Markets Tax Credit <br />program, which provides for be/ow market rate loans to eligible borrowers,' <br />without having to handle all of the paperwork associated with partidpaiJon in this <br />new Federal economic development initiative. <br /> <br />Hembership in the TCCCF comes with a money back guarantee. Ninety percent of <br />the funds received .from members will be deposited in the TCCCF Loan Fund <br />escrow account, which will be managed by an independent Escrow Agent. These <br />funds will remain the property of each respective member and may only be used <br />to fund TCCCF loans. Ten percent of each member's funds will bein the form of a <br />loan to the TCCCF for start-up working capital. Nembers may withdraw their <br />money from the Loan Fund escrow account anytime after three years from the' <br />date of deposit, or reduce their position in the Fund down to the $50,000 level--- <br />for any reason whatsoever. <br /> <br />The Fund will have no employees. TCCCF will contract with the Northland <br />Institute, a Minnetonka-based nonprofit organization, for professional <br />management services in order to keep operational costs down. The fund manager <br />and loan officers are experienced in business financing, deal structuring, portfolio · <br />management, and administration. All TCCCF operating expenses will be paid from <br />portfolio interest earnings and loan origination fees paid by borrowers. <br /> <br />When can we join? <br /> <br />Formal membership enrollment will begin within the next week or so, when our detailed <br />~lembersh/p Disclosure Statement is released to you and all interested metro area' <br />economic development organizations. The Fund will be launched once the $2 million initial <br />capitalization goal is reached, which we expect will be no later than .]uno 2005. <br /> <br />If you, or someone you know, are interested in the TCCCF, please contact Scott Martin for <br />more information. <br /> <br />For more information, p/ease contact; <br /> <br />Twin Cities Community Copitol Fund <br />! 3911 Ridgedole Drive, Suite 260 <br />Minneapolis, MN 5.5305 <br />Phone: (952) 546-9049 <br />Fax= 1952) 541-9684 <br />smartin~tcccf.org <br /> <br />14 <br /> <br /> <br />