MACCI Business Development Financial Resources

Marshfield Economic Development Association Resource Guide

Customized Labor Training Fund provides training grants to businesses that are implementing new technology or production processes (product or process). The program can provide up to 50 percent of the cost of customized training to new or current employees that is not available from the Wisconsin Technical College System. It will pay for trainer and their related expenses. It does not pay for on-the-job training, only classroom sessions, either at the business or off-site. (Up to $2,500 per employee; business cap at $500,000). Can apply more than once and open grant enrollment.

Community Development Block Grant (CDBG) - Economic Development Program, funded through the federal Small Cities CDBG Program, provides grants to communities to promote local job creation and retention. Local governments then lend the fund to businesses for start-up, retention, and expansion projects through grant funding. Funding levels depend on the number of jobs to be created and retained. Facilities, parking lots, etc., cause Davis Bacon wages. Loan is tied to job; $10,000 per full time jobs, not FTE. At least 10 jobs must be created in a two-year period. This creates the revolving loan fund of 4 percent monies for communities to revolve. Equipment purchases qualifies for lending, term of note as long as life of equipment (average 7 years). Working capital is considered equity, not receivables, inventory, buildings. Wisconsin receives $21M annually. Of this amount, 70 percent stays with DOC, split between annual public facilities program and economic development. DOA Housing Authority receives 30 percent. Open enrollment period.

Dairy 2020 Initiative awards State grants and loans for business and feasibility planning to dairy producers and processors considering a modernization or expansion project. This is a 50/50 match, grant award up to $15,000. There are two levels of funding; $1,500 grant and $15,000 50/50 loan at 4 percent. Must hire independent consultant.

Employee Ownership Assistance State Loan Program can help a group of employees purchase a business by providing individual awards up to $25,000 for feasibility studies or professional assistance. The business under consideration must have expressed its intent to downsize or close.

Commerce/Division of Vocational Rehabilitation (DVR) Job Creation Program (state) is designed to increase employment opportunities for DVR clients by providing equipment grants, technical assistance grants, and customized assistance to companies that will hire persons with disabilities as part of business expansion. Monies can be used for equipment, ADA compliance, etc.

Major Economic Development Program offers low-interest loans for business development projects that create a significant economic impact. “Major” means at least 100 jobs, or a significant number for that particular community. Loan amount is $10,000 per full time job created. Money lent at 4 percent.

Rural Economic Development Program makes individual awards up to $15,000 for feasibility studies and other professional assistance to rural businesses with fewer than 25 employees. Must hire an independent consultant. Also two levels, $1,500 grant and $15,000 50/50 loan at 4 percent.

Technology Development Fund helps businesses finance Phase I product development research. Firms completing Phase I projects can receive Phase II product-commercialization funding. This complements the Customized Labor Training.

Brownfields Initiative provides grants to persons, businesses, local development organizations, and municipalities for remediation activities for brownfield sites where the owner is unknown, cannot be located or cannot meet the cleanup costs. (608) 266-3494. Enrollment two times per year.

Business Development Initiative (BDI) provides grant dollars and financial assistance to entrepreneurs with disabilities, along with organizations and businesses interested in hiring persons with disabilities. Enrollment one time per year. (414) 220-5367

BDI Micro Loan Program helps entrepreneurs with permanent disabilities and rehabilitation agencies finance business start-ups or expansions, loan at 4 percent. (414) 220-5365

Enterprise Development Zone Program promotes a business start-up or expansion on a particular site in any area of the state that suffers from high unemployment, declining income and property values, and other indicators of economic distress. The program offers tax credits for hiring disadvantaged workers. Tax credits can be taken only on income generated by business activity in the zone. The maximum amount of tax credits per zone is $3 million and must be used in seven years. This is company specific, not a community designation. The credit is $6,000 for W2/dislocated worker or $4,000 for other hires. This program may soon sunset. (608) 267-2045

Industrial Revenue Bonds (IRBs) are a means of financing (all fixed asset financing) the construction and equipping of manufacturing plants and first time farmers. The municipality is not responsible for debt service on IRBs, nor is it liable in the case of default. IRBs are also exempt from federal income tax. The city needs to pass a resolution and hire bond counsel. This is not available for start-ups. The federal government gives the state a cap on issuance. Currently, cap is $10 million per company site or $40 million per company nationally. (608) 266-3074

Minority Business Development Fund offers low-interest loans for start-up, expansion or acquisition projects. To qualify for the fund, a business must be 51 percent controlled, owned, and actively managed by minority-group members (does not mean women), and the project must retain or increase employment. (608) 266-8380. $100,000 per business. (Grant money is also available to conduct feasibility studies, business plans, and marketing plans.)

Petroleum Environment Clean-up Fund, Recycling Demonstration Grant Program, Recycling Early Planning Grant Program, and Recycling Loan Program are available to assist in waste management.

U.S. Small Business Administration (SBA) provides loan guarantees that are used in conjunction with bank financing to improve loan terms. The SBA can provide information on authorized micro-lenders that make loans of $25,000 or less, and certified development corporations that make fixed-rate, long-term loans for the acquisition of business assets. Three levels: $100,000 Low Doc (can use inventory); 7A - 80 percent from bank loan guarantee with fixed asset financing; and 504 for big projects (up to $1 million), 50 percent bank financing, 40 percent WBD, 10 percent company with fixed asset financing. (608) 264-5261

Wisconsin Housing and Economic Development Authority (WHEDA) offers a program that buys down commercial interest rates, enabling Wisconsin lenders to offer short-term, below-market-rate loans to small, minority-or-women-owned businesses. A loan guarantee program is available for firms changing to meet contract demands; for firms in economically distressed areas; and for tourism and agribusiness projects. This targets small businesses, and will do loans that SBA will not do, hinges on number of employees. Cap at $90,000 two-year; WHEDA takes out CDs bank for lower interest rate. This is passed onto business. 1-800-33-HOUSE

Wood Utilization Program provides grants to the forest products industry, universities, laboratories, and industry-research partnerships for conducting research and development and in-plant trials that develop value-added products from manufacturing by-products and other wood residue; develop economical solutions for environmental protection; and improve the use of available timber resources. 608-266-1386

Community-Based Economic Development Program is designed to promote local business development in economically-distressed areas. The program awards grants to community-based organizations for development and business assistance projects and to municipalities for economic development planning. The program helps community-based organizations plan, build and create business and technology-based incubators, and can also capitalize an incubator tenant revolving loan program. 608-266-7942 Also CDBG-Public Facilities(one time per year) and CDBG-Public Facilities for Economic Development (on-going program) that assist local governments upgrade community facilities, infrastructure, and utilities for the benefit of low-to moderate-income residents and infrastructure for particular economic development projects.

Wisconsin Transportation Facilities Economic Assistance and Development Program funds transportation facilities improvements (road, rail, harbor, airport) that are part of an economic development project. 608-266-9910

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