When you started your business, you probably already looked into traditional loans, grants, or even pitch competitions. But did you know the City of Eau Claire also offers business loans?
These loans are designed to help local entrepreneurs fill funding gaps—especially for projects that bring something new to the community or create local jobs. They’re not meant to replace a traditional bank loan, but they can be a great complement to one.
Here’s what to know before you apply.
1. The City Won't Be Your First or Only Stop
City loans often serve as what’s called “gap financing.” That means the City’s loan programs can step in to cover part of your project’s cost after you’ve already lined up other funding. Think of it as the final puzzle piece, not the whole picture.
For example, maybe you’re opening a new café. You’ve worked with your bank, and they’re willing to cover most of the renovation and equipment costs before opening. You might even be investing some of your own money, but you’re still short by $20,000 or $30,000. That’s where a City loan could help close the gap and bring your project to life.
The important thing to remember: City loans aren’t meant to replace traditional financing. They’re designed to support projects that already have a strong foundation. So before applying, make sure you’ve talked to your bank or credit union to understand how much they’ll lend and what they won’t, and be ready to show you’ve explored all other options.
If you’ve done that and still need a bit more help to make your project work, that’s exactly what these loans are for.
2. Your Business Has to Make an Impact
City loans aren’t just about supporting individual businesses; they’re about investing in Eau Claire’s bigger picture. To qualify, your project needs to do more than just turn a profit. It should create some positive ripple effect in the community.
That impact can take many forms. Maybe you’re renovating a long-empty storefront and breathing new life into a quiet block. Or maybe you’re opening a business in a neighborhood that’s underserved, like a grocery store in a food desert or a daycare center where demand is high but options are limited.
Job creation matters too. Whether you’re hiring five people or fifty, the City looks at how your project grows the local workforce. Will you offer training? Provide good, stable jobs? Partner with local vendors or suppliers? These things strengthen Eau Claire’s economy and can boost your chances of approval.
Bottom Line: If your project helps make Eau Claire a better place to live, work, or visit, that’s exactly the kind of impact the City wants to support.
3. You’ll Need a Solid Plan
Since City loans involve public funds, the expectations are a bit higher, meaning you’ll need to show you’ve really thought through your business from the big picture down to the details.
Start with a solid business plan. It doesn’t have to be lengthy, but it should clearly explain what your business does, who your customers are, how you’ll make money, and what sets you apart.
You’ll also need a realistic budget. What are your startup costs? Monthly expenses? How much revenue do you expect—and when? These projections help the City understand if your business is financially sustainable and whether the loan will truly help you grow.
If crunching numbers isn’t your favorite thing, the Small Business Development Center at UW–Eau Claire offers free one-on-one advising to help you build your plan, sharpen your strategy, and fine-tune your finances. Western Dairyland Economic Development Council also has great programs for entrepreneurs—especially those from underserved communities—and can guide you through everything from market research to cash flow forecasts.
The better prepared you are when you apply, the smoother the process will be and the more confidence you’ll inspire in those reviewing your project.
4. You’ll Likely Still Need to Invest Yourself
City loans aren’t just about what the City can contribute; they typically also require you to put your own money into the project, known as owner equity.
Why? Because investing your own funds shows you’re serious and fully committed. It also means you’re sharing the risk, which makes lenders and the City more confident in your business’s chances of success. It’s a way of saying, “I believe in this project enough to put my own skin in the game.”
How much you’ll need depends on the loan program and your project’s size, but generally, plan to invest at least 10% of the total cost yourself. Sometimes it might be a bit more or less, but having personal equity is almost always a requirement. This equity can come from your savings, help from family or friends, or reinvested profits if your business is already up and running. Just be sure to document where your funds are coming from clearly and honestly for the application.
Putting your own money in might feel intimidating, but it’s also a confidence booster for you and for those deciding on your loan. It shows you’re all in, ready to make your business succeed.
5. Getting Approved (or Not) Isn’t Just About You
When you apply for a City of Eau Claire business loan, you’re not just pitching to any lender. You’re presenting your project to people who care deeply about our community’s future. These reviewers want to see your project’s positive impact beyond your own bottom line.
That doesn’t mean you have to save the world or become the next big thing overnight. But your business should bring real value to Eau Claire—maybe by attracting more foot traffic downtown, revitalizing a neighborhood, or creating good-paying jobs. Even filling a gap in local services, like a specialty shop or healthcare provider, counts as a strong plus.
The City wants to support businesses that help build a thriving, connected community. So, when you apply, think about how your project fits into that bigger picture. How will it benefit your customers, neighbors, and the local economy? Sharing those ideas in your application will help reviewers see the full value of what you’re planning.
In other words, it’s not just about you; it’s about what your business can contribute to Eau Claire’s story.
6. The Application Process Is Worth the Effort
Yes, applying for a City of Eau Claire business loan takes more time and effort than some traditional financing options. You’ll fill out an application, gather financial documents, and go through a panel review process that might feel a little overwhelming at first. But if your project fits, the payoff can be huge.
A City loan can give your business the boost it needs, whether that’s renovating your space, buying new equipment, or growing your team. It’s not just about the funds; having a City loan also adds credibility, showing other lenders and partners that your project has strong community support.
And you won’t be doing this alone. Many local businesses that have received City loans find it opens doors to valuable relationships with banks, developers, mentors, and community organizations. These connections can help you navigate challenges, find new opportunities, and keep growing well beyond repaying your loan.
So yes, it takes some work upfront. But with the right preparation, a City loan can be a game changer and a solid step toward turning your business dreams into reality.
Let’s Sum It Up
A City of Eau Claire business loan won’t be the right fit for every business, but if you’re bringing something valuable to the community and need a little help making the numbers work, it’s definitely worth a closer look. Just be sure you’ve got your plan, your numbers, and your community impact ready, and don’t hesitate to ask for guidance along the way. Eau Claire is rooting for you.
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.
