Dr. Mary Stranahan, founder of the High Stakes Foundation, and Rosalie Sheehy Cates, executive director of the Montana Community Development Corp., elaborated on the issue of “recycling wealth” by investing in local communities during City Club Missoula's monthly forum Monday.
MCDC assists entrepreneurs in western Montana with capital and business advice.
Most of her clients are people who're “just shy” of attaining bank loans, Cates added, because they may not have enough equity or are new in the business.
In an attempt to encourage more locals to invest in MCDC, Stranahan donated $1 million to the group in 2007.
Stranahan, who has retired from her family practice in St. Ignatius, said the donation reflected her values and will help Missoula and western Montana thrive.
“It's been amazing to see how they've leveraged that money,” she said.
Cates said MCDC was able to grow its revolving loan fund from about $5 million to about $8.2 million. The goal is to grow the fund to $15 million.
MCDC's success stories include loans to a single mother in Ronan who makes gluten-free products, a Missoula bakery and a Bitterroot dairy.
Cates said the nonprofit is “reactive” and is driven by the people who come through its doors, ranging from day cares to high-tech ventures. MCDC issues loans ranging from $35,000 to $500,000, although the “bread and butter” loans tend to be between $100,000 and $150,000.
“My experience is there are all types of corporate citizens,” Cates said. “A community needs a real mix. They will all boost the vitality and resilience of Missoula.”
To date, MCDC has invested about $10 million in Montana, while leveraging additional tens of millions from banks and private sources, according to the nonprofit's 2007 annual report.
After the luncheon discussion, several people said they found the topic interesting.
“I thought it was great,” said Neva Hassanein, an associate professor in the environmental studies program at the University of Montana. “I think what they are doing is filling a critical gap by supporting businesses that are homegrown.”
Reporter Pamela J. Podger may be reached at 523-5241 or at pamela.podger@missoulian.com.
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