How is the Fund recapitalized?
MCCF is a self-sustaining development resource, with the ongoing recapitalization of the Fund through the sale of pre-approved loans to a specialized secondary capital market. Most MCCF loans are priced at par, with the sale proceeds from our loans going directly back into the Fund. If a Member wants to buy-down the interest rate on specific MCCF loan, the loan is sold at a discount, so the sponsoring Member is required to make-up the difference between the loan’s par value and it’s sale price. Through this approach, the MCCF loan pool is continually recapitalized and funds will be readily available to make new loans to businesses in the communities we serve.
