Providing employment opportunities, small
businesses loans and quality, affordable housing for
Madison and Dane County residents.
Phone
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TESTIMONIALS

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The Venture Debt Fund is a perfect vehicle for fast growth companies like Forte Research. It provided cash to support growth when we were too risky for traditional bank financing and allowed us to focus on our business instead of the fundraising process.

- Srini Kalluri
Founder
President & CEO& Chief Customer Experience Officer
Forte Research Systems, Inc.

BLOG

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  • Annual Meeting Message

    The goal of Madison Development Corporation (MDC) is to provide quality self-sustaining jobs through loans to small businesses and innovative businesses. MDC also provides affordable housing for Madison and Dane County residents.

     
  • 2014-2015 Accomplishments

    Loan Activity

    Small Business Loans: In 2014, MDC closed on $763,000 of CDBG-funded new direct loans to 9 small businesses. We also closed on 4 loans for $180,000 from our County-wide, Dane County Development Company fund. Through our Venture Debt Fund, we committed and closed on 5 loans, totaling $1,825,000. Strong loan volume has resulted in a growing loan portfolio for year-end 2015, continuing a three year trend.

     

History

"Use this and do good." That was the directive from Mayor Paul Soglin, armed with $500,000 in federal Community Development Block Grant funds approved by the City Council, when his concept of a quasi-public economic development organization was created in 1977.

Over forty years later that organization, Madison Development Corporation (MDC), is still doing good by providing loans to young businesses, affordable apartments to Dane County residents, and debt financing to emerging growth companies.

To date, MDC has provided more than 400 business loans totalling over $20 million. These loans have helped to create 4,000+ jobs over the past three decades; most paying at least twice the federal minimum wage.

  • Frequently Asked Questions

    • Q: How does MDC help local businesses?
      A: We provide capital for businesses which other lenders may deem hard-to-finance, or cannot fully meet the underwriting standards of private commercial lenders.
    • Q: Are your loans at discounted interest rates?
      A: No, they are market-rate loans, and we almost always charge what banks charge. We don't want people coming to MDC because they want free money, grants or 2% interest. We want them to come to us because we provide an opportunity they could not find anywhere else.
    • Q: Where does MDC get the money to make loans?
      A: The money has primarily come from Community Development Block Grant (CDBG) funds that the city of Madison obtained from the federal government. Over a number of years, MDC built up $3 million in CDBG allocations, which has become our revolving loan fund. The principal goes out to Madison businesses and the payments come back in. Every year, we get about $700,000 in payments, so we loan about $600,000 to $700,000 a year. We also earn about $200,000 a year in interest; that pays the bills to run MDC's office and projects.
    • Q: What is MDC's aim with its housing properties?
      A: Quality, affordable housing is part of our mission. We buy a property that may be troubled, fix it up, manage it efficiently and rent it at lower-than-usual prices to lower-paid, working-class people.

Organizational Summary:

Established:1977 by the Madison City Council as a nonprofit economic development corporation

Service: Provides loans to hard to finance young businesses, in addition to offering affordable housing units to qualified tenants throughout Madison and Middleton.

Madison Development Corporation 550 W. Washington Ave. | Madison, WI 53703 Tel. 608-256-2799 Fax 608-256-1560
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