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The City of Eau Claire’s Micro Loan Fund is a public financial initiative designed to support startups, newly established businesses, or expanding small businesses that have been in operation for 3 years or less. By offering smaller loans, the program allows businesses that may face challenges accessing traditional financing to build credit, 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 |
$30,000 |
4% Fixed Annual Rate |
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, commercial, or service business, excluding restaurants, located in the City of Eau Claire that has been in business for three (3) years or less and demonstrates an ability to repay the loan. Targeted economic areas for the program include businesses located in Downtown Eau Claire and those supporting the creative economy.
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 Micro Fund 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