City of Eau Claire business loans can be a fantastic way to give your startup or growing business a financial boost, but like any loan, applying takes some preparation. Whether you’re seeking gap funding for a big project or looking to expand your operations, avoiding a few common mistakes can make a big difference in your chances of getting approved and the time it takes from application to approval.
Here are some of the most frequent missteps we see and how you can steer clear of them.
1. Applying Too Early (or Too Late)
Timing really is everything. One common mistake is applying for a City loan either too early in your planning or too late in your project timeline.
If you’re still working out the basics—your business structure, location, project costs, or start date—it’s probably too soon to apply. City loan programs are designed for projects ready to move forward, not necessarily new ideas still in the early stages of development. The Loan Administration Board (LAB), the commission of volunteer members who review loan applications, will want to see that you’ve done your homework, have a clear plan, and are confident about your next steps.
On the other hand, if construction has already started, contracts are signed, or equipment has been purchased, you may have missed the window, especially for loans offered through the Commercial Building Façade Loan Program. City loans usually can’t reimburse expenses already incurred, and projects underway are harder to evaluate for funding.
The sweet spot? Apply once your plan is solid, costs are well-defined, and your bank financing is lined up, but before you spend money or break ground. That way, City staff and LAB members can review your full project and structure the loan to really help you move forward.
If you’re not sure if your timing is right, just ask. We’re happy to talk through where you’re at and help you decide if now’s the time to apply or if waiting makes more sense.
2. Not Talking to City Staff First
We get it. When you’re excited, it’s tempting to just request the application, fill it out, and hit submit, but taking the extra time to speak with staff in the City’s Economic Development Division (That’s us!) before applying can save you a lot of headaches.
We’re here to help you navigate the process. When you connect with us early, we can walk you through what’s required, explain how the loan programs work, and help you determine if your project fits one or more. We can also flag common pitfalls applicants sometimes miss—like eligibility issues, missing documents, or budget concerns—before you spend hours on paperwork that may not get approved.
Think of it as a friendly consultation to make sure you’re on track. It’s your chance to ask questions, clarify expectations, and get advice to strengthen your application. Plus, when we understand your project and goals, we can support you better throughout the process and may even be able to recommend more resources you haven’t explored yet.
Bottom Line: Don’t go it alone. A quick conversation with the Economic Development Division can save you time, reduce stress, and improve your chances. So, before you request an application, shoot us email. We’d love to help!
3. Skipping the Bank
Another mistake we often see is applicants trying to use a City of Eau Claire business loan as their only source of financing. City loans (especially sizable ones) are designed to fill funding gaps, not necessarily replace traditional bank loans or other financing altogether.
What does this mean for you? Before applying, you should have talked with a bank, credit union, or other lender about financing your project first. They need to be on board and willing to provide part of the funding. That way the City loan complements traditional funding by covering costs your bank might not finance fully or by easing cash flow as you grow. If you haven’t connected with a lender yet, your application will likely hit a roadblock. The Loan Administration Board will want to see solid financial backing from multiple sources, and a bank’s involvement shows your project has been vetted through traditional channels.
So, before filling out your application, make sure you’ve explored banking options and have a lender ready to partner with you. That partnership strengthens your application and makes borrowing from the City of Eau Claire smoother overall.
If you’re unsure how to approach local lenders or need help finding one, don’t hesitate to ask us about that too. Our staff has relationships with local bankers and are here to help you connect with the right people so your project has the best shot at success.
4. Leaving Out the Details
When you apply, the City of Eau Claire Loan Administration Board (LAB) reviews your application and decides whether to approve funding. A big mistake beforehand is not providing the LAB enough information to understand your full project.
You’ll want to include a detailed project budget showing all costs, from materials and labor to equipment and permits. Also include financial projections illustrating how your business will perform over the next few years. These help the LAB see you’ve thought through revenue, expenses, and profitability. And if you don’t have a full business plan, no worries, but at least submit a strong executive summary or narrative that clearly explains your business, what you’re aiming to do with the loan, and how it fits into your bigger vision.
Leaving out details or giving vague answers like “costs will be low” or “sales should increase” doesn’t give the LAB confidence to support your loan. These are experienced professionals from various organizations within the community, and they will want to see you’ve done your homework, researched costs thoroughly, and have realistic expectations.
The more transparent and thorough you are, the more trust the LAB will have in your ability to deliver on your plan, and that trust goes a long way toward approval.
5. Underestimating the Review Process
Applying for a City of Eau Claire business loan isn’t just filling out a form and getting an automatic yes or no. Each application goes before the Loan Administration Board—a group of community leaders and experts who carefully review every detail before rendering a decision.
They look beyond your numbers too. They want to understand your project’s overall impact, including how many local jobs you’ll create or keep, what economic benefits your business brings to Eau Claire, and whether your project makes financial sense now and in the long term.
Some think the review is just a formality or a simple checkbox on the way to funding, but really, it’s more like pitching your business to an investor or bank. The LAB wants to hear your story, see your vision, and understand why your project matters—not just to you, but to the community. Be ready to explain your financials clearly, walk through your business plan, and highlight the value your project adds to Eau Claire. The better you communicate your goals and back them with solid data, the stronger your case.
The review process takes time and careful thought, usually 4-8 weeks. That may sound lengthy, but this review is designed to ensure City funds go to projects that will truly benefit the community and have a strong chance of success. Approaching this step with preparation, respect, and patience will put you in the best position.
6. Ignoring Program Guidelines
One of the easiest—and most avoidable—mistakes is not paying close attention to the loan program guidelines. Each program has rules about minimum and maximum loan amounts, eligible expenses, matching fund requirements, and other criteria.
If you apply for the wrong program or your project doesn’t fit the rules, your application could be delayed, sent back by City staff, or denied altogether before ever making it before the LAB. For example, some loans target equipment purchases, while others focus on building renovations or job creation. Using funds for anything outside approved uses isn’t allowed because these are public funds. That’s why it’s crucial to double-check with the City which program fits your project before applying. Know what’s allowed, how much you can borrow, and any matching fund or timeline requirements.
If you’re unsure which program fits you or if your project meets the rules, that’s exactly why the City of Eau Claire Economic Development Division is here. We’ll help you understand your options and guide you to the best fit, so you don’t waste time on applications that won’t work.
Following the guidelines carefully leads to a smoother process and better chances of success.
To Sum It Up
City of Eau Claire loans are a powerful resource for local entrepreneurs, but they do come with expectations. Taking the time to understand the process, gather your materials, and avoid these common pitfalls will make your application stronger and increase your chances of approval.
Have questions or want to talk through your project? We’d love to hear from you. Reach out to the Economic Development Division and let’s get your application on the right track.
Source: Article Cover Illustration by Freepik
About The Author
Kendall Williams
Marketing & Communications Specialist
Kendall implements the City of Eau Claire Economic Development Division’s marketing strategies, coordinates business assistance, and supports data-driven planning and analysis.
