If you’re applying for a business loan through the City of Eau Claire, your application isn’t just going to sit on a desk gathering dust. It’ll be reviewed by both City staff and a group called the Loan Administration Board—or LAB for short. This City board, comprised of volunteer community members, evaluates each proposal to decide whether it qualifies for City funding.
But what exactly are they looking for? Let’s break it down.
A Clear Purpose for the Funds
Before anything else, the board wants to understand why you’re asking for the loan. Are you starting a new business? Expanding your space? Hiring staff? Buying equipment? There’s no one-size-fits-all answer, but what they really want is clarity.
Think of your application like telling a story: what you’re doing, how the loan helps, and why the timing matters. If your request is vague—something like “general operating costs” or “business development”—it’s harder for the board to see the value. But if you explain you’re purchasing a new oven to expand your bakery’s offerings and boost production by 40%, now they’ve got a clear picture.
It also helps to include a timeline. When will you spend the money? How will it move your project forward? Will it help you open sooner, hire faster, or increase capacity? The more specific you are, the easier it is for the board to connect the dots between your vision and the dollars you’re requesting.
Bottom Line: LAB isn’t looking for fancy language—just a focused, well-explained plan for how the loan will help your business grow.
Financial Readiness
This one’s a big deal. LAB wants to know your business is financially ready to take on a loan and pay it back without stretching yourself too thin. They’re not out to nitpick your finances, but they do want to be sure the numbers add up.
That starts with a realistic budget. How much funding do you actually need, and where will it go? A simple spreadsheet showing how you’ll allocate the loan and your financial projections—whether it’s for equipment, renovations, inventory, or marketing—goes a long way.
Next up: repayment. How will you cover the monthly payments? What kind of revenue will your business generate once things are up and running? The board wants to see you’ve done the math and planned for both expenses and income.
Even if you’re a new business without much financial history, you can still show you’re fiscally responsible. A solid credit history, clean records, or a successful track record managing money—whether personally or professionally—can all strengthen your application. And if you’ve worked with a local lender, business advisor, or the UW—Eau Claire Small Business Development Center (SBDC), that’s even better. It shows you’ve taken the time to plan thoughtfully and aren’t navigating this alone.
You don’t need to be a financial wizard, but you do need a firm grasp on your budget, revenue plan, and funding strategy.
A Thoughtful Business Plan
No one expects a 50-page business plan with charts and forecasts, but LAB does want to see that you’ve put serious thought into how your business works and why it’s built to succeed.
Here’s what they’re hoping to see:
- Who are your customers? Are you targeting families, students, businesses, tourists? LAB wants to know you’ve identified your audience and understand their needs.
- How will you reach them? Social media? Local advertising? Community events? You don’t need a full marketing strategy, but you should have a plan for getting the word out.
- What makes your business different? Maybe you’re offering something totally new to Eau Claire. Or maybe you’re putting a fresh spin on something familiar. Either way, the board wants to know what sets you apart.
- How will you stay financially stable? What are your revenue streams? How will you manage costs? How will your business stay sustainable over time?
Even if your idea is still in the early stages, thinking through these questions helps the board see you’re building a business with purpose, not just reacting to opportunities as they arise. A thoughtful business plan shows LAB you’re ready for the journey ahead—milestones, curveballs, and all.
Commitment from Other Lenders
City loans aren’t necessarily meant to fund your entire project. Instead, they’re designed to fill a gap as one part of a larger financing puzzle. That’s why LAB looks for buy-in from other lenders like banks, credit unions, or even private investors.
This idea of “shared risk” matters. If another lender is willing to invest, it tells the board your project has been vetted and others believe in its potential. It also spreads out the risk, making the whole package more stable.
That might look like a bank loan covering part of your build-out, a credit union financing your equipment, or a line of credit to support inventory. Any of these strengthen your application. Bonus points if your lender has experience working with City loan programs too; they may even help shape your application in a way that sets you up for success.
And if you haven’t finalized outside funding yet, that’s okay. Showing you’ve started conversations or submitted applications still signals you understand what’s needed and are actively working toward it.
In short: LAB wants to see you’re not doing this alone and that others are confident enough in your business to invest, too.
Local Impact
City loans aren’t just about growing businesses; they’re about growing Eau Claire. That’s why the board pays close attention to how your project benefits the broader community.
There are lots of ways to make a positive local impact:
- Creating jobs. Whether you’re hiring one person or ten, adding local jobs, especially quality, long-term ones, helps strengthen the local economy.
- Filling gaps in the market. Maybe your business brings something new to an underserved part of town or meets a need that isn’t being addressed.
- Improving a neighborhood. Are you renovating a vacant building? Activating an underused space? Contributing to a livelier downtown or commercial area? That all counts.
- Supporting other businesses. Maybe you’re a supplier helping local stores lower costs. Maybe your success increases traffic for your neighbors. If your business lifts others up, that’s a big plus.
The clearer you are about your project’s local benefit (jobs, access, foot traffic, revitalization) the stronger your application will be. LAB isn’t just investing in entrepreneurs. They’re investing in Eau Claire’s future. Show how your business plays a role in that, and you’ll stand out.
Signs of Long-Term Success
At the end of the day, LAB wants to fund businesses that are here to stay. They’re not looking for perfection, but they are looking for staying power.
That could mean:
- Experienced leadership. Maybe you’ve worked in the industry for years. Maybe you’ve started another business before. Or maybe you’ve built a strong team with the skills to execute your vision.
- A clear customer base. If you understand who your customers are, what they want, and how to serve them consistently, you’re already ahead.
- A flexible business model. Things change. Markets shift. LAB likes to see that you’ve built in room to adapt, whether through diverse revenue streams or the ability to pivot if needed.
- Community connections. Businesses that are engaged with their community through partnerships, loyal customers, or local suppliers tend to be more resilient.
You don’t need to have every detail locked in, but showing that you’ve thought about the future and are planning to grow sustainably tells the board you’re in this for the long haul. And that’s exactly the kind of investment the City wants to support.
In a Nutshell...
The City of Eau Claire Loan Administration Board is looking for promise. If your application shows that your business is well-planned, financially sound, and rooted in the community, you’re already off to a strong start. And if you need help pulling everything together, Eau Claire has plenty of local resources to guide you—from the Small Business Development Center to community lenders and business support organizations.
You don’t have to figure it all out on your own. And who knows? Your business could be the next great success story the City helps bring to life.
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.
