Providing employment opportunities, small
businesses loans and quality, affordable housing for
Madison and Dane County residents.
(608) 256-2799




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
President & CEO& Chief Customer Experience Officer
Forte Research Systems, Inc.


  • MDC Businesses Create 127 New Jobs in 2012

    The 2012 Jobs numbers are in!  MDC's active portfolio of Community Development Block Grant (CDBG) funded loan customers and our Venture Debt borrowers employed a total of 800 people as of the end of 2012. In 2012, these borrowers hired a total of 127 new employees.

    Ninety-four of these new hires were full-time jobs. Of these new hires in 2012, 70% were paid above two times the minimum wage, which we define as a high "quality" job, and 69% included employer-provided health care. Of the jobs created in 2012, 55% were filled by low-and moderate-income people.

    Frank Staniszewski, MDC President

  • 2013 Chair of the Board of Directors Message

    2013 MDC Chair of Board of Directors Message

                Madison Development Corporation is directed by the mission of providing quality employment opportunities through loans to small businesses and affordable housing for Madison and Dane County residents. MDC has continued to fulfill this mission over the past year.

                MDC’s lending programs have provided capital to both traditional small businesses and cutting edge technology companies. With access to capital still difficult for small businesses, MDC played a very important and necessary role in providing funding to these individuals and companies. At a time when the strength of the economy and job creation are important issues, the impact that MDC borrowers have on the Dane County economy is substantial with over 800 employees and 127 new hires in 2012. MDC borrowers include individuals pursuing the dream of owning a business as well as companies with the vision and technology that could become the next big breakthrough. The list of companies for which MDC has provided financing is both long and impressive.

                Apartment rents in Dane County have increased such that housing for many residents is no longer affordable. The property management team and entire staff at MDC have worked hard to provide quality, affordable housing options. The success of the housing program is reflected in the high number of residents served who have income levels of less than 50% of the median income level.

                MDC has also expanded its housing in the South Park Street neighborhood. With the addition of the most recent units, MDC has the opportunity to further its positive impact in the neighborhood by transitioning poorly managed and maintained housing into much needed quality apartments.

                Frank and the entire staff have shown passion and energy to continue the mission of MDC for the betterment of our community. Their vision for MDC has led to new avenues for growth and options to provide valuable services to our customers and residents. Frank and the staff have strategically positioned MDC for the future by taking advantage of long term, low interest rate financing.

    The Board would also like to recognize Dave Scholtens for his 30 years of service with MDC and for the role he has played in directing the MDC lending promgrams. His efforts are greatly appreciated and have directly contributed to the success of our loan customers.

                I would personally like to thank the Board for the time and energy committed to MDC’s stated mission. Special thanks are also extended to Tom Solheim and Jay Loewi for their dedicated leadership, service, and contribution to the success of MDC.

    Rob Bergenthal

    Chair, Madison Development Corporation Board of Directors 2011-2013


Venture Debt Program

MDC's Venture Debt Fund is designed to provide debt financing to emerging growth companies. The debt is structured with repayment forecast from the company's ability to reach cash flow breakeven with its existing liquidity or the company's ability to raise additional equity capital.

The Fund is intended to be complementary to early stage equity sources of capital and stretch the ability of growth companies to access capital at a predictable cost while giving up minimal ownership or control.

Requirements for Eligible Borrowers:

  • Businesses must be located in Dane County, and
  • Businesses are expected to create new, quality jobs for Dane County residents, and
  • The Fund is targeted to companies that have reached the revenue stage but are still negatively cash flowing. The fund is designed to provide these companies with the liquidity needed to reach cash flow breakeven and beyond.

The Venture Debt Fund provides loans at rates from Prime + 3% to Prime + 8%, depending on risk. The fund will also take warrants or conversion rights for a percentage of the face value of the loans to compensate for risk.

These terms provide flexible and predictable costs of capital to early stage growth companies, without giving up significant dilution of equity or control.

MDC and our participating partners will provide over $5million dollars for emerging growth companies in Dane County through the fund.

MDC's partners in the fund include MGE Energy, Johnson Bank, Anchor Bank, Associated Bank, State Bank of Cross Plains, Capitol Bank, Middleton Community Bank, Oak Bank, M & I Bank, First Business Bank, Settlers Bank, Town Bank, Starion Bank, Middleton Area Development Corporation and the City of Fitchburg, and a start up grant from Bank One.

For information contact David Scholtens at (608) 256-2799 ext 213 or This email address is being protected from spambots. You need JavaScript enabled to view it.

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