MEDC’s approach is unique in that we share the risk with all participants in a project, lend in partnership with a financial institution, and lend funds at a higher risk level in order to increase the feasibility of a project.
MEDC not only lends in Milwaukee, but now will look at projects in the M7 region of Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha, and Walworth counties. MEDC loans include lending to for-profit businesses for business acquisition, expansion, equipment, real estate purchases, building and leasehold improvements, and new construction. Loans ranges between $50,000 to $750,000.
Typically, our financial institution partner will have a first mortgage lien on the project property and equipment for 50% of the project budget. MEDC will provide 40% of the financing in a secondary position. Interest rates are competitive and sometimes below market rates. The borrower needs to provide 10% of equity to the project.
This model allows the financial institution to lower its risk with a lower loan to value. A lower equity injection by the borrower helps preserve precious working capital in the business.
Other MEDC lending considerations:
Other product enhancements and funding sources are as follows:
MEDC | 757 North Broadway, Suite 600 | Milwaukee, WI 53202 | Phone: (414) 269-1440 | Fax: (414) 269-1466
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