Since 2001, MEDIC has been linking socially concerned investors with community and economic development projects – projects developed by organizations like yours.
MEDIC Akron’s Sustainable Communities Fund (ASCF) is a community development loan and investment fund that provides “gap” financing for business job creation projects that have sustainable community impact value but may not be able to source traditional financial institutions for all of the financing needs.
MEDIC goes beyond the mentality of a lender and is a fully committed partner of the project – to providing businesses with our “Good Place Work Place” training curriculum for key management staff and employees. This training promotes a healthy and competitive business environment.
The Akron Sustainable Communities Fund is intended to serve the historically under invested and under resourced areas and projects in the Akron and Summit County region.
The Fund promotes innovative Community Impact Investing, training and lending in a full spectrum of impactful economic and community development projects, businesses, schools, day care facilities, affordable housing, green initiatives, healthy foods based businesses, and co-operative production initiatives that enhance sustainable lives and sustainable development both locally and globally.
Community Impact investing is a way to put feet to our faith and channel public and private investment to improve the quality of life for low and moderate income households, other marginalized persons or the underserved with jobs, housing, education, healthy choices, medical resources, growing churches, capital, credit and training leading to sustainable lives and sustainable neighborhoods.
- Needed services related to or that promote healthy communities, healthy food access, education projects, child care, access to transportation, access to jobs, day care facilities, affordable housing.
- Economic development Quality job creation, infrastructure development, business expansion, facilities and equipment acquisition, working capital and equipment loans, trust bank and trust group credit projects.
- Sustainable communities (mixed use/income smart growth, environmentally focused community investment) New technologies.
- Sustainability Element The project must be sustainable or lead towards an improved quality and sustainable life, sustainable community, sustainable environment, either physically, mentally, socially or spiritually.
Financing will be made available to organizations or businesses that are or will be locally owned by:
- The majority of persons benefiting are low to moderate-income persons or the project area or the beneficiaries are low-income (defined as below 80% of the area HUD median, adjusted for family size); or
- minorities (MBEs); or
- women (WBEs)
- In cases where ownership does not meet the above requirements, ownership agrees that in their hiring practices they will strive to higher at least 51 % of their employees hired will be initially low-income (defined as below 80% of the area HUD median, adjusted for family size); or minorities or women.
Credit will not be made available to any business or project that disrupts the community or environment, operates illegally, exploits resources or does not meet our investment based values.
- Real property – acquisition or improvement Equipment or inventory
- Cash flow or working capital
- Energy-efficiency and green technology initiatives/improvements
- Down payment assistance
MEDIC prefers to “provide “gap” financing to fill the gap for the financing needs of much larger projects, leveraging our dollars to do more good, and taking on more risk. What this means is that there are equity requirements, and we expect there to be bank financing involved in the project prior to our gap financing being approved.
- For start-ups, the maximum loan amount is $25,000
- For existing or expanding businesses (with at least 12 months of consistent sales), the maximum loan amount is $150,000
Participation loans with other lenders are considered on a case-by-case basis.
Designated Program Related Investment project terms may be negotiated on a project by project basis.
Other special products and programs are periodically available
- Repayment terms vary based on use of funds, cash flow and social impact
- Generally, (non-mortgage) term loans will not exceed 60 months
- Generally, bridge loans and lines-of-credit will not exceed 12 months
- Fees vary, depending on size of loan, collateral and other factors
- Generally minimum 5-10% equity requirement for the project.
- Preferably the loan is providing less than 50% of the total project cost
Interest rates will be determined from time-to-time by the Loan Fund, at its sole discretion. The current rates depending on project evaluation range from 5% to 15% fixed rate, subject to change without notice.
All loans shall be secured by one, or more, of the following:
- Business assets- equipment, inventory and/or receivables
- Personal guarantee(s)
- Co-guarantor(s) or Trust Groups
- Contract assignment
Application fee: $100 due at time of application (includes cost of credit report)
Origination fee: $350 due at time of closing and may be paid from loan proceeds
Legal fee: varies according to size and purpose of loan and may be paid from loan proceeds. Normally less than $400.
Other fees: In addition to the above, borrower is responsible for all closing costs associated with a loan, including, but not limited to, filing, recording and title fees.
Training fee: If Training or a Business plan is required to receive the loan – up to $500, due at time of closing and up to $400 may be repaid from the loan proceeds.
No Pre-Payment Penalty
- Financial reports (monthly, quarterly or annually, as required by the Fund)
- Annual tax returns or form 990 if a non profit.
- Report on job creation and impact on community (as requested)
- Other information as requested by the Fund
Prospective borrower identifies need and contacts the ASCF Loan Fund representative at Mercy Economic Development International.
Staff informs prospective borrower about loan products and other services and required training.
If appropriate, prospective borrower completes loan application, attends training classes or trust group training, is assigned a mentor and may be required to develop a business plan, if applicable, and becomes a part of the MEDIC network.
Application submitted to the Community Loan Fund. After initial review, additional information may be requested.
Staff orders a credit report and begins underwriting the loan. Additional information may be requested.
When application is complete, Loan Officer Presents to our Project Review Committee and, if necessary, to the Board of Directors.
If approved, a commitment letter is issued. Borrower signs indicating acceptance of proposed loan terms and conditions.
Fund coordinates the loan closing, which may be at our office or our attorney’s office.
After loan is made, staff services and monitors the loan.
The Fund may offer (or require) borrower to receive training or technical assistance. In addition, we may offer (or require) periodic visits to your business to review your business/financial performance and review upcoming business/financial challenges.
For more information or to apply for a loan, please contact Larry Lallo at 330-871-4256.
Loan applications may be submitted at any time – however, it is highly recommended that you discuss the application and the application process with a Loan Officer prior to submission. Each loan application is evaluated on a case-by-case basis for its financial viability and positive social impact. Program funds and terms are subject to change without notice.