In Wisconsin

Technology Development Loans


Technology Development Loans

Flexible Lending Options for New Technology Development In Wisconsin

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.

How It Works

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 product/process development, commercial launch and rapid expansion.

Loans typically range between $100,000 and $750,000 and are required to be part of a larger funding round.

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.

Terms

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; loans may not be used for past costs
Fee : Origination fee of 2.0 percent of the loan amount
Interest Rate : Fixed rate of 6 percent
Repayment : The loan shall have a term of up to 7 years with a deferral of principal and interest payments up to 36 months and an option for an additional 12 months of interest-only payments, followed by equal monthly payments of principal and interest.

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 Business Security Agreement or Specific Security Agreement; in cases where WEDC feels it is necessary, assignment of a life insurance policy may be required
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.

For more information about loan programs and requirements or to obtain an application, email or call a WEDC technology investment manager:

Joey Frayne
608.210.6871
Email Joey.

Chris Schiffner
608.210.6826
Email Chris.

Technology Development Loan - Joey

WEDC’s mission is to help you start and grow your business. Please provide a brief description of your business needs and one of our account managers will respond in a timely manner.
  • This field is for validation purposes and should be left unchanged.

Technology Development Loan - Chris

WEDC’s mission is to help you start and grow your business. Please provide a brief description of your business needs and one of our account managers will respond in a timely manner.
  • This field is for validation purposes and should be left unchanged.

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