$1.7M in expenses

Small business developmentas a cdfi, MCCD delivers essential support to businesses across a broad range of ownership models - from individually owned micro-enterprises to cooperatively owned and member-led enterprises - providing guidance from startup through every stage of growth and development. Our mission-driven approach prioritizes community-based economic opportunity and expanded access to business resources for entrepreneurs and community groups historically underrepresented in traditional systems of support.(continued on schedule o) since launching the open to business (o2b) program in 2011, MCCD has provided formal small business development services to communities across the twin cities metro area, with a focus on supporting entrepreneurs of color, women, immigrants, and others who have faced barriers to accessing traditional forms of capital or support. O2b operates in partnership with local and regional municipalities throughout the seven-county metro, serving both the core cities of minneapolis and saint paul and 141 suburban communities. Building on this foundation, MCCD expanded its services in 2021 to meet the growing need for alternative ownership strategies that help keep businesses and commercial assets rooted in local communities. Our shared ownership programming and lending complements our long-standing work with conventional businesses and is particularly timely as many of minnesota's baby boomer business owners approach retirement and seek succession or exit planning support. This support is available statewide to commercial community land trusts, employee-owned cooperatives, and real estate investment cooperatives that are at least 51% owned by individuals who are people of color, immigrants, low-income, women, veterans, or persons with disabilities. Open to business (o2b) and our shared ownership program provide support and guidance to new, emerging, transitioning, and growing business owners through access to a highly skilled and experienced team of professionals who serve as advisors, advocates, and partners. We offer no-cost, one-on-one and small group technical assistance in english, somali, spanish, and hmong to ensure our services are accessible to the diverse communities we serve. Support may include feasibility assessment, business plan development, governance and operations management education, cash flow and financing projections, marketing plans, licensing and filing requirements, the development and implementation of sound financial management systems, and guidance on policy design and risk mitigation strategies. In addition to technical assistance, MCCD offers access to capital for entrepreneurs who may not qualify for traditional bank financing. MCCD has a strong track record of advancing the financial sustainability and growth for low-wealth individuals and communities, particularly those led by entrepreneurs of color. Over the past decade, we have delivered more than 36,000 hours of technical assistance to over 7,500 aspiring and established business owners. We have also provided direct financing to more than 560 borrowers, totaling approximately $20 million, and have helped leverage over $120 million in additional capital. In 2024, demand for small business technical assistance remained high as MCCD advisors assisted 883 o2b and shared ownership clients through over 6,100 hours of direct technical assistance. MCCD provided shared ownership business advising services to 8 emerging employee-owned cooperatives, including 5 in the direct care industry. Our support focused on helping these cooperatives build strong governance systems, develop sustainable business models, and access critical capital. Through a partnership with the minnesota department of human services, funded by the american rescue plan ACT (arpa), each direct care cooperative received $162,400 to support their launch and long-term viability. In addition, MCCD supported 2 commercial real estate investment cooperatives and a commercial community land trust, helping advance local ownership strategies that preserve affordability, maintain community control, and build assets through member-led structures.

$920K in expenses

Loan programas a community development financial institution (cdfi), MCCD provides capital to people who face challenges in accessing the commercial banking system, with a focus on black, indigenous and people of color (poc), women, and low-wealth entrepreneurs. MCCD has been managing and administering loan programs, including providing the required reports and repayments of capital, to funders and lending partners since 1989. MCCD is currently a lending partner with several state-funded funded programs, as well as the cities of minneapolis, roseville, and ST louis park.(continued on schedule o)the loan program strives to do the following:provide patient, low-interest rate loans (3-5%) to target-market eligible businesses and cooperatives, with a focus on supporting black, indigenous and other people of color. These loans help mitigate operational disruptions and improve access to capital, addressing gaps in many state programs and the limited availability of bank financing in historically underserved communities. When needed, some loans may offer interest only payments for the first 1-2 years. By structuring our products to minimize monthly/annual debt expenses for business owners, those most impacted by the pandemic will have a better chance to stabilize and grow their operations.provide loans with a forgivable portion and grants to businesses and cooperatives owned by black, indigenous, and other people of color in target-market areas. These funds ACT as equity-like investments to help attract and leverage traditional bank financing. As mentioned above, there were disparities in accessing emergency funding through government programs. These will provide immediate access to capital and help better position borrowers for increased bank financing.in 2024, we closed 67 loans with $1,878,501 in direct lending, while leveraging an additional $3,033,921 in outside capital, leading to 411 new jobs created or retained.

$415K in expenses

Member services and advocacystate policy advocacy:during the 2024 minnesota state legislative session, MCCD's legislative agenda focused primarily on economic development policy, while also advocating for sustained investments in affordable housing. Policy priorities were informed by a working group MCCD convened in 2023.(continued on schedule o)policy changes were enacted that positively impact cdfis and other mission-based lenders through updates to the emerging entrepreneur loan program (elp), the expanding opportunity growth fund, the community wealth building pilot program, and the small business assistance partnership program:-authorized fee-based lending for elp, the expanding opportunity growth fund, and the community wealth building pilot.-established a 10% interest rate cap for loans made under these programs.-clarified eligibility for tribal economic development entities and cdfis to access these programs.-streamlined underwriting by removing duplicative processes for partner organizations in elp.-updated the small business assistance partnership program to ensure grants are used exclusively for free technical assistance to entrepreneurs.-incorporated automatic partial loan forgiveness for borrowers in good standing (10% for elp; 15% for the community wealth building pilot). -allowed a 15% administrative allowance for grantees of the small business assistance partnership program. -approved a 1% loan closing fee from deed to support administrative costs for elp and the expanding opportunity growth fund.in addition to economic development, MCCD continued to lead advocacy efforts around housing, particularly related to housing infrastructure bonds (hibs) and the housing affordability preservation investment program.despite a smaller overall housing budget in 2024, MCCD led efforts to secure $50 million in new housing infrastructure bonds, ensuring continued development and preservation of affordable housing. Notably, eligible uses for hibs were expanded to include the development of cooperatively owned affordable housing.MCCD strongly supported the $50 million allocation for the housing affordability preservation investment program, which is designed to recapitalize distressed properties, preserve state-funded affordable housing, and help ensure families can remain stably housed.recognizing the importance of civic engagement in policy change, MCCD hosted its third annual policy and advocacy training in 2024 at the state capitol in preparation for the 2025 session. The training provided participants with hands-on opportunities to engage with the legislative process, including conversations with policymakers, a behind-the-scenes tour, and practice testifying in a hearing environment.as part of our expanded statewide policy and membership efforts, we also brought our training to greater minnesota, hosting sessions in bemidji and mankato. These regional trainings aimed to reduce participation barriers for individuals and organizations outside the metro area, especially as remote participation in legislative hearings becomes more widely available.local policy advocacy:rent stabilization - city of minneapolis - following the passage of a minneapolis charter amendment authorizing the city council to consider rent regulation policies, the city initiated a rent stabilization work group to help shape the policy framework. Recognizing MCCD's leadership in equitable housing and economic development, the city's community planning and development department named MCCD as a key stakeholder in this process.MCCD played a critical role in the 25-member work group - which included renters, property owners, developers, and organizational representatives - by elevating the perspectives of nonprofit affordable housing providers. In addition, MCCD participated in a dedicated subgroup of our members and partner organizations to ensure that nonprofit affordable housing voices were represented and their concerns integrated into the policy recommendations submitted to the city council.MCCD's participation helped shape a more inclusive and balanced rent stabilization framework that reflects the needs of both tenants and mission-driven housing providers.emerging leaders in community development:the emerging leaders in community development (elcd) program continued to serve as a cornerstone of MCCD's leadership development strategy in 2024. Designed to build a diverse pipeline of future community development leaders, elcd supported early- to mid-career professionals through a six-month cohort experience centered on leadership growth, mentorship, and expanding professional networks.in 2024:-13 mentees and 13 mentors participated in the 2024 cohort, representing a wide range of racial, cultural, and professional backgrounds across the twin cities. Each mentee was paired with a senior-level mentor, fostering cross-generational learning and expanding access to professional networks within the community development field.-MCCD hosted five learning and networking events, including site visits and panel discussions on equitable development, economic inclusion, housing justice, and nonprofit leadership.-the cohort experience also included individual coaching, peer learning sessions, and opportunities for participants to present their work to broader audiences, enhancing visibility and leadership capacity.the elcd program continues to be an important investment in the future of equitable community development, building capacity and cultivating leaders who are committed to advancing racial and economic justice.