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Twin Cities Community Capital Fund Page 3 of 4 <br />the Loan Fund. Through this approach, the TCCCF Loan Fund will be <br />continually recapitalized and funds will be readily available to make <br />new loans at all times. <br />What drives the price paid for a loan? <br />Institutional investors who purchase economic development <br />loans seek a market rate of return. Accordingly, loans that are <br />priced at market rates receive par value. Those priced above the <br />market earn a premium, while those priced below the prevailing <br />market are bought at a discount. However, in every case, the <br />originating TCCCF member decides whether to offer the loan at par <br />value or at a rate either below or above par. <br />How flexible are the Fund's lending policies? <br />The TCCCF is designed to provide a great deal of flexibility in terms <br />of borrower eligibility, interest rates, loan terms and conditions, <br />equity requirements, etc. The Fund's lending focus will be on <br />business and community economic development financing activities. <br />TCCCF members are encouraged to work closely with the fund <br />manager in structuring loan packages that are responsive to their <br />needs. <br />Is there a limit on the number of loans that a TCCCF member <br />can originate? <br />No. The only limit is on the size of each loan that may be originated <br />by a member from the Fund. Members will be able to originate loans <br />of up to ten (10) times their TCCCF participation amount. <br />Is there a cost to join the Twin Cities Community Capital <br />Fund? <br />Not during the Fund's initial member enrollment period. However, <br />once the Fund has received a total of $2 million in initial <br />capitalization from members, the Fund will be formally launched and <br />the members will elect the Board of Directors at the Fund's <br />Organizational Meeting. After this "Initial Closing ", new members will <br />be required to pay a nonrefundable membership fee equal to 10% of <br />their Loan Fund Deposit. <br />So, if your community or organization is thinking <br />about joining the Fund, you should do so soon —at <br />no cost!! <br />[Home] [Loan Application] [About The Fund] [Membership] [FAQ] [Contact] <br />http: / /www.tcceforg /faq.cfm 4/22/2005 <br />