"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, is still doing good by providing loans to hard-to-finance businesses, increased job opportunities and affordable apartments to Dane County residents, and debt financing to emerging growth companies.
Frequently Asked Questions
Q: What is MDC's aim with its housing properties?
A: Housing is a key building block for our mission at MDC. We have been providing quality, affordable housing for the Madison workforce for more than four decades. Initially, we purchased properties that were troubled, needed to be fixed up, or required professional management. Now, we not only renovate existing properties, but develop new apartment buildings and townhomes. We pride ourselves in the fact that MDC owns and manages all of its properties. This allows us to rent apartments at low prices to individuals who meet the income criteria set by the City.
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. These organizations include neighborhood businesses, startups, and high-tech firms with high-growth potential.
Q: Are MDC's loans offered at discounted interest rates?
A: MDC's loans are typically market-rate loans based on the prime rate. The difference between MDC and other lenders, is that we will take on a higher risk to ensure jobs are created here in Madison. Our loans have flexible terms; we lend funds that we expect to receive back over time with principal and interest payments.
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 the past 40 years.
MDC Service Equal Opportunity Policy
MDC will assure the equitable and accessible delivery of our services to the general public by assuring that services are administered and provided in compliance with federal, state, and local civil rights legislation. MDC insures that no otherwise qualified person, based on protected status, shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program, service or activity which we provide. Protected status includes age, race, color, disability, association with a person with a disability, gender, creed or religious conviction, national origin and ancestry.