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The City of Eau Claire’s Low Barrier Loan Fund is a public financial initiative designed to support startups and other businesses that may face challenges accessing traditional financing. By offering loans with fewer entry requirements, the program allows businesses to secure essential capital for growth, while helping to boost development, enhance the community’s well-being, and ensure broader participation in the city’s economic prosperity.
| Minimum Loan | Maximum Loan | Interest Rate |
|---|---|---|
|
$5,000 |
$25,000 |
4% Fixed Annual Rate |
The Finance Department 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.
Guarantees
Unlimited business and personal guarantees will be required of all owners with a 20% or greater ownership interest in the business.
Terms
The is a short term loan program. Terms will be between 3 and 5 years. If it is determined by the Loan Administration Board that deferral of the principal payment for a period not to exceed one (1) year would likely lead to the success of the project and that upon review of updated financial information file 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.
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, commercial, or service business, including restaurants, located in the City of Eau Claire that demonstrates an ability to repay the loan.
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 a Low Barrier Loan.
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