Madison Development Corp.: Madison Development Corporation loans help create 230 new jobs
Contact: Frank Staniszewski, MDC President
Phone: 256-2799, Ext. 212
New hiring shows a strengthening recovery in Madison and Dane County
Madison, Wis.--Madison Development Corporation (MDC) released its 2011 Jobs Report and Survey today, showing its small-business borrowers created 230 new jobs in 2011. These include 192 new full-time jobs and 38 part-time jobs. “Our report shows a strengthening recovery building on last year’s growth. Even in the face of slow job growth in the State, our small business loan borrowers’ hiring is up again even stronger than last year” said MDC President Frank Staniszewski.
In 2010, MDC’s borrowers reported 150 new hires, up considerably over ’08 and ’09. Hiring in 2011 exceeded that rate and even more so among full time hires which were up 40% over 2010. In addition 76% of the jobs pay decent salaries and include benefits such as health care. “These are jobs that can support a family,” said Rob Bergenthal, MDC Board Chairman.
The most new jobs from any single business in 2011-- 73, all full time -- were reported by Nordic Consulting Partners Inc. Nordic is a dynamic healthcare IT consulting company assisting hospitals and clinics of all sizes throughout the U.S. to manage their electronic health record projects. Nordic received a loan through MDC’s basic Business Loan Program, funded by the City of Madison Community Development Block Grant (CDBG).
Other loans to technology businesses were also among the strongest performers. These borrowers include NeuWave Medical-- an early stage medical instrument company and Forte Research—an enterprise software for medical research centers. Several of these companies were financed by MDC’s Venture Debt Program in partnership with MG&E, seven local banks, and the Area Development Corporations of Fitchburg and Middleton. The Wisconsin Housing and Economic Development Authority (WHEDA) also joined the Venture Debt Fund in 2011.
“All of us on the leadership team at NeuWave really appreciate the support and availability of funds from Madison Development Corporation. MDC provided liquidity at a critical juncture for NeuWave Medical,” said Laura King, President and CEO of NeuWave Medical, Inc. In the non-tech sectors, leading job generators were Brocach Irish Pub, with 34 new hires, and Greenway Crossing Montessori School with 12 new jobs. Cliff McDonald, co- owner of Brocach Irish Pub, credits MDC, “MDC was flexible and responsive with helping us to grow our brand and to create jobs. If the initial response from our customers is any indication, they also helped us to create a new local favorite spot! We are truly grateful for their support.”
The loans are made in a partnership with the City of Madison through the US Department of Housing and Urban Development Community Development Block Grant Program and with funds from private banks. “Madison Development Corporation is positioned to work with the private lending community and the public sector to make scarce capital resources more readily available at a time when more and more businesses are finding it harder to borrow,” said Bergenthal.
MDC has loans to approximately 65 small businesses in Madison and Dane County. The total employment at MDC’s current and reporting loan clients is 800. MDC is a local non-profit development company helping hard-to-finance small businesses with loans when banks cannot make the loan or provide a company with all the credit they need. For more information, go to http://www.mdcorp.org.