Areas Served: Walworth County
The Hometown Entrepreneur Loan Program is a small revolving loan fund pool managed by the Walworth County Economic Development Alliance, Inc. It was acquired in 2008 from the United States Department of Agriculture – Rural Development for the use of providing small loans to new and emerging businesses in Walworth County.
Under HELP entrepreneurs can secure funds for start-up, business acquisition, and expansion.
Eligibility To be eligible to borrow funds from HELP, business must be: – Located in Walworth County – Have fewer than 50 employees – Have gross sales under $1,000,000 Eligible Use of Funds Funds from Help May be used to: – Real Estate Acquisition – Equipment Purchases – Working Capital – Construction or renovation Ineligible Use of Funds Funds from HELP may not be used to: – Produce agricultural products except for commercial nurseries – Timber Operations – Limited agricultural production related to technical assistance projects – Programs operated by cable television systems – Funds can only be used for planning given projects and cannot be used for area wide type planning Funds may not be used to refinance existing debt Types of Financing Available The following forms of financing are available: – Real Estate – Equipment & Construction – Working Capital Leveraged Funds One dollar of private sector investment should be obtained for each dollar of RLF investment.
Private sector investment is defined as financing from a private lending institution, public sector business loan programs, other than the Community Development Block Grant program, or new equity that is injected into the business as part of the expansion project.
Grants from the Department of Vocational Rehabilitation are not considered eligible matches for loan purposes.
Equity Requirements Borrower must show a minimum of 10% equity in the project being funded.
Personal Guarantees In most cases the Budget & Finance Committee will as the business owner to sign a personal guarantee.
Loan Terms The maximum funding available to loan applicants is $50,000, of which matching funds may be required by the loan applicant.
– Working capital loans up to seven (7) years – Machinery, equipment & construction up to ten (10) years – Real estate up to twelve (12) years, amortized over 20 years The interest rate for each loan is set by WCEDA’s board of directors and will vary depending upon the borrower’s credit and ability to repay funds.
Contact InformationCity of Elkhorn, Wisconsin
Address: 1000 E Centralia St
City: Elkhorn
State: Wisconsin
Website:
http://www.walworthbusiness.com/index.php?option=com_content&view=article&id=82:walworth-county-small-business-revolving-loan-fund&catid=23:business-resources
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