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Twin Cities Community Capital Fund <br />About <br />Partners <br />Board of Directors <br />Staff <br />Project Financing <br />Examples <br />About the Fund <br />Page 1 of 3 <br />Finding the right financing to meet the needs of a growing business can be very <br />challenging. Banks and other commercial lenders may not always be able to offer <br />the type of financing that businesses need without the participation of another <br />lender. That's where the Twin Cities Community Capital Fund comes in. <br />The TCCCF is a nonprofit economic development loan fund that will soon offer <br />customized, flexible financing solutions to fit most business needs. Our long -term, <br />subordinated, fixed -rate loans, which will only be available in select Twin Cities <br />communities, are made in partnership with local banks, other commercial lenders <br />and our member economic development organizations. When we work with <br />business owners and their banker, our goal is to help put together a complete <br />financing package that meets everyone's needs. <br />We always have money to lend.* <br />The TCCCF is a self- sustaining economic development financing resource. <br />Recapitalization of the Loan Fund is through the sale of pre- approved loans to a <br />national secondary market. <br />Our loans are structured to best meet the needs of our members, our borrowers, <br />and participating lenders. One of the primary considerations for our members as <br />loan terms and conditions are being negotiated is how the secondary market will <br />price the loan for purchase. <br />The actual price to be paid for TCCCF loans is known to the originating member <br />before a final loan commitment is made. If the price offered by the market is <br />discounted from par value (which only occurs when the member wants to offer <br />below market rate financing to a borrower), the TCCCF member is responsible for <br />funding the difference between par value and the loan sale price. There is no cost to <br />members when loans are sold at par value. On the other hand, if the loan is sold at a <br />premium, the member receives the premium payment (that amount in excess of the <br />loan's par value). <br />Under this approach, the TCCCF loan pool is continually recapitalized and our <br />members are able to originate an unlimited number of loans in their communities. <br />* TCCCF will begin accepting loan applications upon the successful <br />completion of the Fund's initial loan fund capitalization and <br />membership enrollment period, which is expected to occur by July 1, <br />2005. <br />With a TCCCF loan you can finance: <br />o Fixed assets, including land and building purchases. <br />o Building construction (perrnanent financing only). <br />o Leasehold improvements and building renovations. <br />o Machinery and equipment purchases, renovation, and moving expenses. <br />o Working capital (when secured by fixed assets - -with a fixed repayment <br />schedule). <br />http : / /www.tece£org /about_tece£cfm 4/22/2005 <br />