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Capital Access Program

At MEDC, we never lose sight of the big picture. Our role is to find creative, flexible ways to provide loan dollars so that smart business ideas like The Dog Nest come to life—bringing prosperity to neighborhoods and creating quality jobs for the people who live in them.
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Lender Capital Access Program

Lender Capital Access Program (CAP) is a flexible state-wide loan loss reserve program that provides lenders with a way to fund projects considered too risky for conventional lending through creating a lender specific loan loss reserve. CAP can provide short-term access to financing for companies, especially start-ups and small businesses which may not be able to obtain conventional financing. This is accomplished through the creation of a lender-specific loan loss reserve.

CAP is structured as a public-private loan loss reserve program. Each lender participating in CAP has its own reserve to protect against losses on loans approved by the lender and enrolled in the program. The lender, along with the borrower, set aside funds as a reserve. This combined total of reserve funds is matched by MEDC. If a borrower defaults, this reserve can be used to reduce the lender’s loss. If the funds are not needed, they become part of an ongoing reserve for future loans made by the lender and enrolled in CAP.

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Eligible Projects and Financing

  • Non-profit and for-profit businesses

  • Higher match percentage for target loans— minority, women and veteran majority owned businesses; businesses located outside of the metropolitan statistical areas; loans made by non-profit lenders

  • Short-erm loans and lines of credit

  • Loan size from $1,000 to $250,000

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Ineligible Projects

  • Taverns and bars

  • Liquor stores 

  • Gun shops

  • Passive or residential real estate investments 

How CAP Works

  • Lender completes a participation agreement with MEDC.

  • Lender uses its own criteria for determining to make the loan.

  • Lender determines the loan term, interest rate, fees, collateral requirements and other loan conditions.

  • Lender submits a one-page enrollment form about the loan with fee.

  • MEDC remits matching amount for deposit to the Lender’s loan loss reserve account.

Reserve Amounts


  • MEDC matches 3% for loans up to $150,000 and 2% for loans over $150,000.

  • Loans over $250,000 can be enrolled with preapproval from MEDC.

  • MEDC matches 150% of the fee for targeted loans up to a maximum of $5,000.

  • Reserve fund plus earned interest accumulate in the lender’s CAP account.

  • Lender makes claims of charged off loans from the CAP account for shortfall on collection. Recoveries must be re-deposited into the reserve account.

Our lender partners appreciate the benefits of the MEDC Capital Access Program. There is 

no processing delay, virtually no paperwork, minimal eligibility rules, and the credit decision stays in the hands of the lender. CAP is fast, easy, and helps bring more projects to life in our communities. Want to know more? Contact us know

Current Lending Partners

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