Application process

Once a prospective client has filled out an inquiry form and we have checked that they meet our basic eligibility criteria, the next step is securing the approval of MDLF's Board of Directors.

Board Approval
Once sufficient information is collected, the proposal is presented to the MDLF Board of Directors, which considers whether the application comes from a country in which MDLF is able to work and decides either to accept the media organisation as a loan candidate or to reject it.

The Board's decision is based on an analysis of an applicant's journalistic content, opinions collected from media support organisations and other reliable civil society representatives with local knowledge, site visits by MDLF Board members or staff, interviews with the applicant's owners and editorial leadership, and a careful review to confirm the company's independent ownership. The Board also takes into consideration the total amount of funds available for the particular country or type of project.

Business Plan
Once approved by the Board, the applicant must prepare a detailed business plan. The process is monitored by MDLF financial experts and consists of several reviews, revisions and re-drafting. If it proves necessary or desirable, MDLF provides training for the candidate in business-plan writing. The business plan consists of two parts: a narrative description of the investment project, including its purpose, process of implementation and expected results; and a detailed financial analysis of the company's current condition and foreseeable future trends in its business development.

Investment Committee Decision
Once the documentation is complete and the business plan is fully developed, the applicant defends its project and business plan in front of an MDLF Investment Committee. The Investment Committee assesses the financial viability of the applicant's proposal. The Investment Committee has the right to approve or reject a financing request, or send it back to MDLF staff with a request for additional information or clarification. If the Investment Committee approves the application, it decides on the amount, interest rate and conditions of the loan or other financing.

Terms of Financing
All MDLF loans and leases are denominated in a currency of MDLF's choice, principally U.S. Dollars or Euros.

The interest rate on MDLF loans and leases is below commercial interest rates on loans to small- and medium-sized businesses made on comparable terms generally available in the client's country and will depend on, among other things, the nature of the project and the prevailing interest rates in the client's country.

To partially offset the high risk of MDLF loans and leases, in addition to paying interest clients may be required to provide MDLF with a warrant. The warrant grants to MDLF an option to purchase a minority equity interest in the client's company at a later date.

There is an annual monitoring fee for all types of financing over $50,000 to cover the costs associated with ongoing evaluation of the financial performance of the client.