Small Business Loan Fund
In 2012, LISC, Morgan Stanley, and CDC Small Business joined forces to develop a small business loan fund to support commercial expansion and job creation in communities battling economic decline. New Markets Support Company manages the fund - the Job Creation and Community Revitalization Fund (JCCR Fund) - which was initially capitalized with debt and equity from Morgan Stanley and $10 million of LISC’s New Markets Tax Credit (NMTC) allocation.
Through the JCCR Fund, LISC can provide long-term first mortgage financing that is part of an SBA 504 loan package for small businesses. The NMTC subsidy allows us to offer these loans at below-market interest rates, with an interest-only period that is not otherwise available in the market.
In 2015 the partners decided to expand the fund with an additional $12.4 million in NMTC allocation. As of December 2016, the JCCR Fund has provided $17 million in financing to 15 small businesses, enabling them to purchase real estate, grow operations, and hire new employees.
For details about the Fund, please see our term sheet.