Access to Capital -- A Collaborative Approach That Works!

The Northland Institute has a specific interest in designing and managing innovative economic development financing programs and services for both rural and urban areas.  Access to capital is often a critical issue for economic growth and survival of neighborhoods and entire communities.  During the past few years, the Institute has developed two innovative gap financing organizations for Minnesota and are currently helping other organizations to establish similar funds in states throughout the country.

Minnesota Community Capital Fund

Our Community Capital Fund model focuses on meeting the capital needs of businesses, local governments, and/or nonprofit organizations.  The first of these is the Minnesota Community Capital Fund (MCCF), a new nonprofit membership organization that was established in February 2003 to increase the availability of gap-financing capital in rural communities by pooling local economic development funds and providing direct access to national capital markets.  Since its establishment, MCCF has committed more than $17 million for sixty loans to businesses and nonprofits throughout rural Minnesota.

Twin Cities Community Capital Fund

Due to the success of MCCF, the Institute was asked by local governments in the Twin Cities metropolitan area to develop a fund to serve businesses in their communities.  The Twin Cities Community Capital Fund (TCCCF) was launched in July 2005 with 26 members.  TCCCF members can sponsor loans from $50,000 to $2 million, for almost any business need, in partnership with banks and other commercial lenders.

To learn more about the Institute's Community Capital Funds, please click on the links below:

Minnesota Community Capital Fund (MCCF)

Twin Cities Community Capital Fund (TCCCF)

Expanding the Community Capital Fund Business Model

The Northland Institute's Communitiy Capital Fund model has proven to be very effective as a means of promoting economic development collaboration and providing businesses with the capital they need -- when they need it.

The Institute assisted South Dakota Rural Enterprise, Inc. a statewide nonprofit economic development organization, with the establishment of the South Dakota Community Capital Fund in 2005.

Community Development Resources of Lincoln, Nebraska launched the Nebraska Community Capital Fund in 2006 with the help of the Institute.

Organizations interested in creating a Fund for their state should contact Scott Martin at the Institute.