Contact: Frank Staniszewski, MDC President
Phone: 256-2799, Ext. 212
Email: fstan@mdcorp.org
Study shows most in high tech, includes low- and moderate-income workers
Madison, Wis.–Madison Development Corporation (MDC) released its 2009 Jobs Report and Survey today. “The Madison Development Corporation report shows that even through tough economic times, we can work with local businesses and banks to create good jobs right here in Madison,” said MDC President Frank Staniszewski.
MDC’s small-business borrowers reported that they created 110 new jobs in 2009. These include 44 new full-time jobs and 66 part-time jobs, which translate into 29 full-time equivalents for a total of 73 new full-time jobs. The jobs are created in a partnership with the City of Madison and Dane County through the US Department of Housing and Urban Development Community Development Block Grant Program and private banks.
“MDC’s loan has been pivotal to our ability to grow and create jobs,” said Kurt Sippel, president of Applied Tech. “Given the times, we needed a partner like MDC to take advantage of the new business opportunities that are still out there.” Applied Tech is a local information technology company that provides services for small- and medium-sized businesses that may or may not have internal I.T. departments. Applied Tech added six new full-time employees in 2009.
“We would not have jobs if it weren’t for the Madison Development Corporation,” said Rory Rose of Rose Custom & Collision on Broadway. Rose created one full-time and 5 part-time positions after the closure of Quality Auto Body where he used to work.
These days many banks need to be more careful to meet higher capital requirements or in reaction to loan losses, making the lending environment harder than usual. MDC makes loans to start-up or early stage businesses that do not meet bank standards.
* The average loan size is $60,000 and interest rates are set to match commercial bank rates to avoid displacing bank funds when available.
* The loans pay back into a revolving loan fund that then go to other businesses to create more jobs.
“Creating these 73 new full time jobs is a real example of local governments working with businesses and banks to create good jobs that put people to work, build our tax base, and get our economy moving again,” said Dane County Supervisor Brett Hulsey, member of MDC’s loan committee. “An MDC loan is a lifesaver for a small business person to stay in business.”
Other successful examples of MDC loans include Daisy Café and Cupcakery, a new restaurant on Atwood Avenue that hired 14 full-time equivalent positions, including 4 full-time and 25 part-time employees.
“Opening a restaurant, especially in this economy, is no cake walk–or in our case, ‘cupcake walk,’” said Daryl Sisson of the Daisy Café & Cupcakery. “But Madison Development Corporation provided the key loan that helped us get into business and create 14 new jobs. We think this is just a start toward creating more new jobs in years to come. And if our regional and national economy is going to recover, it’s going to take a whole lot of small businesses that succeed in creating 5 or 15 or 25 jobs in a year.”
Semba Biosciences is one of several technology businesses that cumulatively reported the majority of new jobs to MDC. Semba created 4 jobs in 2009, and continues to add employees this year.
“We have been able to hire people, develop new products, and generate revenue thanks to the Madison Development Corporation loan,” said Bob Mierendorf from Semba Biosciences, located in UW Research Park.
MDC received this news from 18 of their small business borrowers who have succeeded and grown, despite the tough economic times. In addition to the new job numbers, businesses also reported that:
* 81% of the new full-time jobs, and 22% of the new part-time jobs paid a quality-living wage (defined as twice the federal minimum wage or greater);
* 74% of the jobs were filled by low- or moderate-income individuals (based on their previous income before the new job); and
* 37% of the new jobs also had employer sponsored health benefits;
“Madison Development Corporation is proud to provide this service to Madison and Dane County and continues the tradition of local government, HUD, and the lending community working together to create jobs and jump-start businesses,” said Tom Solheim, Chair of the MDC board of directors.
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.
