Entrepreneurs often have no choice but to get creative when it comes to financing their new ventures. Recognizing that new ideas are the future of economic growth, the Wisconsin Economic Development Corporation (WEDC) offers lending options targeting the critical stages of new business development. WEDC’s loan funds are tailored to help innovative companies with promising economic futures clear the hurdles associated with bringing new technologies, products and concepts to market.
Companies that provide high-tech or innovative solutions with national or global market potential may be eligible for WEDC Technology Development Loans, which are tailored to the evolving needs businesses face as they move through their development cycle.
Among the criteria WEDC uses to make investment decisions are financial need, private investment leverage, management team experience, the potential to increase production, and the potential for long-term, positive economic impact in Wisconsin.
WEDC financing is generally limited to 20 percent or less of an identified project or funding cycle. WEDC will require the balance of funding to be available prior to funding the loan.
WEDC will evaluate applications based on factors that include growth potential, timeline, funding, technology, market, execution, cash flow, secondary benefits, need and business impact.
In addition, the following terms apply:
|Use:||Working capital or equipment financing|
|Fee:||Origination fee of 2.0 percent of the loan amount|
|Interest rate:||Fixed rate of 6 percent|
|Repayment:||Loan term will typically range from 5-7 years and will not have a term of more than 10 years. The loan will have regularly scheduled payments of principal and interest with the possibility of balloon payments. Deferral periods or interest-only payments may be granted.|
|Collateral:||General lien on all assets and/or specific equipment|
|Guarantor(s):||May be required under certain circumstances|
|Match requirement:||The borrower must provide a minimum of 4:1 match of private investment funds to TDL loan proceeds.|
|Convertible notes:||WEDC may require an ability to convert into an equity position as a condition of the loan.|