Re: [Mpls] MCDA small business loans

[Sheila Delaney]

Actually, I know of several neighborhood restaurants that will be opening soon. Some of them accessed MCDA small business loans another obtained a small amount of financing from a Community Development Corporation ( Seward Redesign.) I know for a fact that these restaurant owners have outstanding credit, great business plans and substantial equity into their businesses. The additional financing obtained from the MCDA and the CDC was just the extra gap financing that they needed to open. I imagine that most people on this list are in favor of local businesses populating neighborhood commercial nodes. The MCDA and other CDC lenders play an important role in making a truly local economy possible.

This type of gap financing is community development, not "sub-prime lending."

Sheila Delaney
Lyndale, Ward 10

From: Terrell Brown <[EMAIL PROTECTED]>
Reply-To: [EMAIL PROTECTED]
To: Minneapolis Issues List <[EMAIL PROTECTED]>
Subject: [Mpls] MCDA small business loans
Date: Thu, 26 Dec 2002 11:17:30 -0800 (PST)

-----Original Message-----
From: Iric Nathanson

In a recent posting, Michael Hohmann maintains that MCDA small business
loan programs are a form of "subprime" lending that uses tax dollars to
complete with commercial subprime lenders.

In fact, the MCDA programs do not constitute subprime lending.  Rather,
they provide capital access for neighborhood-based small businesses
that may lack an established track record or a large enough down
payment to obtain the financing they need.


[TB]  Give me a break.  That is exactly what sub-prime lending is.  It
is lending money to those who are not able to obtain money thru sources
that require better credit worthiness.  Established track records and
larger down payments make a borrower more credit worthy in the eyes of
most lenders.

Me thinks Michael had it exactly right.



Terrell Brown
Loring Park
terrell at terrellbrown dot org

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