The Business Loan Program makes loan funds available for growing or start-up businesses that cannot fully meet the underwriting standards of private commercial lenders.
Terms are generally consistent with the life of assets to be financed.
We often offer amortization periods that are longer than the loan term, thus reducing payments but requiring a balloon payment or MDC refinancing at the end of the term. Credit Standards are designed to allow MDC to make higher risk loans than private lenders. While MDC does have established cash flow and collateral requirements, we can accept security from outside the business and are flexible in evaluating collateral and determining debt repayment ability. MDC generally requires personal guarantees. MDC's loan decisions are made by a Committee made up of MDC Directors and volunteer private-sector loan officers.