Providing employment opportunities, small
businesses loans and quality, affordable housing for
Madison and Dane County residents.
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"The Venture Debt Fund has been a valuable piece of our company’s financing structure and allowed us to use our latest equity financing directly for sales and marketing activities. This debt financing enabled us to hire staff and build our first instruments, leading to our early  success."

- Lisa Johnson
Chief Business Officer
Semba Biosciences, Inc.


  • 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.


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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