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The City of Eau Claire’s Revolving Loan Program is a public financial initiative designed to support larger commercial and industrial businesses.
The program serves the Economic Development Division mission by supporting the following goals and objectives in the City of Eau Claire:
1) To add new well-paying jobs.
2) To grow the tax base.
3) To facilitate expansions and support local businesses.
4) To recruit outside businesses to locate in the City of Eau Claire.
5) To increase the quality of life and promote a diverse economy.
| Minimum Loan | Maximum Loan | Interest Rate |
|---|---|---|
|
$10,000 |
$100,000 |
4% Fixed Annual Rate |
Unless special approval is given by the Loan Administration Board, lending institution participation is required for capital projects. Direct loans may be made up to 100% of the project for working capital needs.
The Finance Director will review the program’s interest rate annually as compared to market conditions and recommend changes, if any, to the Loan Administration Board, who shall have the authority to adjust the rate accordingly.
Terms
The terms of the loan will vary depending on the collateral and use of funds. Short terms will be encouraged. Typical loan terms are 10 years for real estate purchases or renovations, 3-10 years for capital equipment, or 3-5 years for working capital. If it is determined by the Loan Administration Board that deferral of the principal payment for a period not to exceed 1 year would likely lead to the success of the project, and that upon review of updated financial information filed by the borrower that loan collateral remains a viable and likely source of recovery in case of default, deferral may be allowed as approved by the Board.
Collateral
The City will record a lien against the collateral pledged for the loan. The collateral pledged must be sufficient to cover the value of the loan and be related to the business activities covered by the loan or other real property. Unlimited business and personal guarantees will also be required of all owners with a 20% or greater ownership interest in the business.
The City’s Economic Development staff will review the applicant’s materials to ensure accuracy and completeness. They will then bring the application forward to the City’s Loan Administration Board, who will review the entirety of the application and approve or deny the loan request.
Eligible Borrowers
Any manufacturing or service business, excluding restaurants, located in the City of Eau Claire that has been in business for at least three years and demonstrates an ability to repay the loan. Targeted areas include Downtown Eau Claire, Sky Park Industrial Center, Gateway West and Northwest Business Parks, Chippewa Valley Industrial Park, and other commercial or industrial clusters.
Eligible Uses of Funds
Permanent working capital; inventory purchases and supplies; acquisition of equipment, machinery, furniture and fixtures; leasehold improvements; building renovation and rehabilitation; and real estate acquisition.
Ineligible Uses of Funds
Refinancing existing debt. However, upon Board approval, RLF borrowers may move the loan to a different financial institution if the City’s lien position will not be compromised. Relocation of companies located outside the City of Eau Claire.
Get in touch with a team member for more information on how to apply for the City of Eau Claire Revolving Loan Fund.
Mailing Address
203 S. Farwell Street
PO Box 5148
Eau Claire, WI 54702
Hours
Monday: 8:00am-5:00pm
Tuesday: 8:00am-5:00pm
Wednesday: 8:00am-5:00pm
Thursday: 8:00am-5:00pm
Friday: 8:00am-5:00pm
Saturday: Closed
Sunday: Closed
Phone
(715) 839-4914
Fax
(715) 839-4939