State and Federal Financing Incentives/Programs
State and Federal Financing Incentives/Programs (TIF)
Tax Incremental Financing helps attract economic development to underdeveloped commercial and industrial areas within the political subdivisions of cities, villages and in some cases town. The municipality can designate a specific area within its boundaries as a TID Tax Incremental District (TID) and develop a plan to improve its property values. Taxes generated as a result of the increased property values pay for land acquisition and/or needed public works.
Economic Diversification Loan (EDL)
The Economic Diversification Loan program provides a low interest loan to an existing business interested in expanding or relocating operations in the State of Wisconsin. Applicants can receive up to 75% of the eligible project costs by providing the necessary application materials including a comprehensive business plan. Awards will be based upon the viability of the business including the number, type and wages of jobs created or retained and the extent to which the project provides diversity to the economy.
Wisconsin Housing and Economic Development Authority (WHEDA) Small Business Guarantee
A WHEDA grant can be used for land or building acquisition, equipment or inventory purchase associated with the expansion or acquisition of a small business (50 or fewer FTEs). Guarantees are limited to $250,000.00. The program can be used to finance mixed use projects where at least 50% of a building is occupied by the participating business. Other uses for program resources can include starting a Day Care Operation, which could include either cooperative ownership or be a not-for-profit operation.
WHEDA Agri-Business/Small Business Loan Guarantee Program A WHEDA program to assist with acquisition, expansion or modernization of a business or a farm. For more details go to: http://www.wheda.com/sb or http://www.wheda.com/ag.asp. In Washburn County your WHEDA Representative is: Janet Bewley 1-800-334-6873, Ext.613 or email at janet.bewley@wheda.com.
The Wisconsin Transportation Economic Assistance (TEA) Program
TEA Grants, provide assistance for transportation facilities (highway, road, street, airport, harbor) as they relate to a specific economic development project that creates meaningful full-time employment opportunities. For more information, contact Dennis W. Leong, Wisconsin Department of Transportation (608) 266-9910.
Community Development Block Grant–Economic Development (CDBG-ED)
The CDBG-ED Program provides grants to communities to loan to businesses for start-up, retention, and expansion projects. Grant dollars are associated with the number, type, wage, and duration of jobs created or retained as a result of a project. Communities can also create Community Revolving Loan funds (RLF) from the loan repayments of grant dollars.
U.S.D.A./Rural Development Microloan Program
The Rural Economic Development Microloan Program is designed to provide working capital or fixed asset financing for businesses in rural communities.
Small Business Administration (SBA) Loan Program
The U.S. Small Business Administration provides loan guarantees that are used in conjunction with private lender financing to improve the terms of loans. The SBA can provide information on authorized micro-lenders can make loans of $25,000 or less, small business investment companies and certified development corporations that make fixed-rate, long-term loans for acquisition of business assets.
Industrial Revenue Bonds (IRB)
Industrial Revenue Bonds are another means of financing building of, and providing the equipment for manufacturing concerns. Municipalities involved in IR Bonding are not responsible for debt service, nor are they liable for defaults. IRB's are also Federal income tax exempt.