Madison Development Corporation: Loans helped create 150 new jobs in 2010

Contact: Frank Staniszewski, MDC President

Phone: 256-2799, Ext. 212

Email: [email protected]

Technology sector is strongest performer

Madison, Wis.–Madison Development Corporation (MDC) released its 2010 Jobs Report and Survey today, showing its small-business borrowers created 150 new jobs in 2010. These include 115 new full-time jobs and 35 part-time jobs. “Our report shows strong recovery relative to the last two years of tougher economic times. Our small business loan borrowers hired more than two times the new full-time positions than in 2008 and 2009,” said MDC President Frank Staniszewski.

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.

In 2009 MDC’s borrowers reported fewer hires—110—plus more than half of those were part time. For 2010, in addition to more new jobs and most hires being full time, 81% of the jobs were at high wages and 79% also had employer-sponsored health benefits. “These are jobs that can support a family,” said Tom Solheim, MDC Board Chairman.

The most new jobs in 2010– 21, 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. “The loan from MDC made it possible to start Nordic at time when financial institutions weren’t lending to young companies. Thanks to MDC, we’ve created dozens of good paying new jobs, and we’re looking forward to continued growth, which will further benefit the whole community,” stated Mark Bakken, CEO of Nordic Consulting Partners Inc.

Loans to technology businesses were among the strongest performers. 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 Venture Debt Fund is a perfect vehicle for fast-growth companies like Forte Research. It provided cash to support growth when we were too risky for bank financing, and allowed us to focus on our business instead of the fundraising process,” said Srini Kalluri, Founder and CEO of Forte. Forte Research Systems, Inc. develops and markets enterprise-class clinical research management software. They experienced strong growth and hired 13 employees this past year.

“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 Solheim.

MDC has loans to approximately 50 small businesses in Madison and Dane County. Twenty-five reported some new hires this past year. 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.