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Business Loan Program (BLP)

MDC manages several loan funds available to growing or start-up businesses that cannot fully meet the underwriting standards of private commercial lenders.

Our BLP is funded in part by the City of Madison Community Development Block Grant Program. Loan decisions are made by a committee comprised of MDC Directors and volunteer, private-sector loan officers. Applications are reviewed and accepted/denied monthly.

Loans can be made for up to $200,000 to qualifying businesses (our average accepted borrower receives about $60,000) for working capital, inventory, equipment, leasehold improvements, and real estate. Qualifying requirements include:

  • Businesses must be located in the City of Madison

  • Businesses are expected to increase employment by approximately one job for every $25,000 in loan funds received

  • Rates are fixed, generally at or near commercial lending rates

Fees are charged to cover costs of loan preparation and processing. MDC usually charges 2% of the principal amount.


MDC also offers second mortgage financing through its Business Loan Program:

  • Ability to lend up to 90% of purchase in conjunction with a conventional first mortgage

  • Low down payment requirement allows business to preserve cash for working capital

  • Rates at or near the commercial bank rates (Will consider fixed or variable rate options)

  • Loan processing fee of no more than 2% of MDC loan amount

                   Total purchase price of $300,000
                   Bank 1st mortgage ~ $210,000
                   MDC 2nd mortgage ~ $60,000
                   Owner's cash ~ $30,000

 *Applications are available by calling or visiting the MDC office or by clicking on the Business Loan Program Application link below.

Contact for Business Lending:
Frederick McConnell - V.P. of Lending & Investments



The BLP fund has been in existence over 30 years. In that time, MDC has made loans to over 400 companies in the City of Madison.

Our loan clients include several businesses that define the character of Madison such as:

  • Willy Street Co-Op

  • Union Cab

  • Barrymore Theatre

  • Soap Opera

  • Monty's Blue Plate

  • Bunky's Café

MDC has also assisted several technology-based businesses including:

  • Panvera

  • Mirus Bio

  • Novagen

  • Tomotherapy

  • Applied Tech