To be eligible for a business loan from the City of Eau Claire, applicants must have a business address located within city limits. If you’re unsure whether your business meets this requirement, use the City’s property search tool available here.
The City of Eau Claire Low Barrier Loan Fund is a public financial initiative designed to help early-stage businesses get off the ground. Aimed at entrepreneurs who may not qualify for traditional financing but still have a strong idea and a plan to move forward, the program has fewer application requirements, making it easier for business owners to secure the capital they need to start or expand their business, while also strengthening our local economy and making sure more people can share in Eau Claire’s success.
Accessible Financing
The program offers a more flexible path to funding, making it easier to get the capital businesses need to grow.
Flexible Loan Amounts
Businesses can request between $5,000 and $25,000, giving them room to find the right level of funding.
Fixed Interest Rate
Loans come with a 4% fixed annual rate, giving businesses stable, predictable payments they can plan around.
Short-Term Repayment Periods
Loan terms range from 3 to 5 years, giving businesses a clear, manageable timeline to pay back their loan.
Diverse Use of Funds
Loan dollars can support a wide range of needs, from working capital to real estate, giving businesses flexibility.
Economic Inclusion
The program lowers financing hurdles, helping create a more welcoming and accessible business environment.
Loan Amounts
The minimum loan available is $5,000, and the maximum loan available is $25,000.
Interest Rate
All loans carry a fixed 4% annual rate. The City of Eau Claire Finance Department reviews this rate each year to make sure it stays in line with market conditions and may recommend adjustments for the Loan Administration Board to consider.
Guarantees
Owners with at least a 20% stake in the business must provide unlimited business and personal guarantees.
Terms
This is a short-term loan program, with repayment periods between 3 and 5 years. In some cases, the Loan Administration Board may approve a principal payment deferral of up to twelve (12) months if it would help the project succeed and the loan remains well-secured based on updated financials.
Collateral
Collateral is not required, but encouraged, to apply for this program.
Participating Lender(s)
Unless the Loan Administration Board requests one, a partnering lending institution is not required.
City of Eau Claire Economic Development Division and Finance Department staff will review each application for eligibility, accuracy, and completeness before presenting it to the Loan Administration Board. The Board will then consider the application and supporting materials and decide whether to approve or deny the request.
Eligible Borrowers
Manufacturing, commercial, service, and creative economy businesses—INCLUDING restaurants—that are located within Eau Claire city limits, have been operating for less than (3) years, and can demonstrate the ability to repay the loan are eligible.
Eligible Uses of Funds
Funds may be used for permanent working capital; inventory and supplies; equipment, machinery, furniture, and fixtures; leasehold improvements; building renovation or rehabilitation; and real estate acquisition.
Ineligible Uses of Funds
Funds may not be used for refinancing existing debt—though borrowers may transfer their loan to another lender with Loan Administration Board approval, provided the City’s lien position is protected—and assisting with the relocation of companies located outside the City of Eau Claire.
Follow these steps to apply for any of the loan programs offered by the City of Eau Claire.
Determine Eligibility
To get started, connect with the City of Eau Claire Economic Development Division by email, phone, or a visit to City Hall. Our team will walk through the program guidelines with you, help determine which loan best fits your business, and offer recommendations based on factors like income, collateral, business type, and how you plan to use the funds. Or if your project isn’t a match for City financing, we’ll point you toward other financial partners who may be a better fit.
Complete an Application
Once you’ve identified the right loan program, our team will share the application and walk you through the next steps. Fill out each section of the form, gather the supporting documents listed on the included checklist, and submit everything either online or in person. Staff will then review your materials and project details to make sure the application is complete.
Present to the Loan Administration Board
Once your application has been reviewed internally, you’ll be invited to present at an upcoming Loan Administration Board. During this meeting, board members will review your materials and ask questions to get a clear sense of your business and how the loan will be used. They’ll then deliberate and either make a decision that day or request additional information for a later meeting.
Sign Loan Documents
If your loan is approved, the Finance Department will prepare a loan agreement that lays out the interest rate, terms, and conditions. Take time to review everything and ask questions if anything needs clarification. Then, once you’re comfortable, sign the documents and return them to the Finance Department.
Receive Funds
After the loan documents are signed, the funds will be disbursed according to the terms of your agreement, typically within a few weeks. Make sure the money is only used for the approved purposes, and then follow the repayment schedule so you keep your loan in good standing and avoid any penalties or fees.
All loan applications are presented to the City of Eau Claire Loan Administration Board, a committee of community members that makes final decisions regarding City loans. This board typically meets from 11:30am-1:00pm on the third Wednesday of the month (except June and September) if there are applications to discuss.
Applications and all supporting materials must be submitted at least three weeks prior to Loan Administration Board meetings to be considered. Please keep in mind, submitting an application by the deadline does not guarantee that your application will be presented at the Loan Administration Board’s next meeting. Depending on the program and accuracy of materials initially submitted, City staff may need more than two weeks to prepare applications for presentation to board members. Updates will be shared throughout the process.
Here are the 2026 Loan Administration Board meeting dates and the deadlines by which completed applications need to be submitted ahead each meeting.
| Meeting Date | Application Deadline |
|---|---|
|
January 21, 2026 |
December 31, 2025 |
|
February 18, 2026 |
January 25, 2026 |
|
March 18, 2026 |
February 25, 2026 |
|
April 15, 2026 |
March 25, 2026 |
|
May 20, 2026 |
April 29, 2026 |
|
No Meeting in June |
No Meeting in June |
|
July 15, 2026 |
June 24, 2026 |
|
August 19, 2026 |
July 29, 2026 |
|
No Meeting in September |
No Meeting in September |
|
October 21, 2026 |
September 30, 2026 |
|
November 18, 2026 |
October 28, 2026 |
|
December 16, 2026 |
November 25, 2026 |