Through a grant from the Wisconsin Department of Commerce’s – Community Development Block Grant Program (CDBG), the Village of East Troy has the ability to make loans of varying sizes to businesses that are considering locating within the cities limits.
Projects must be located within the corporate limits of the Village of East Troy in order to be eligible for loans made through the Revolving Loan Fund.
Applications may be submitted by any business wishing to establish a new operation or expanding an existing operation located within the Village of East Troy.
Program loans are available to applicants for the following activities:
- Acquisition of land, buildings and fixed equipment
- Site preparation and construction or reconstruction of buildings, including leasehold improvements and façade renovation for commercial and industrial buildings; and/or installation of fixed equipment
- Clearance, demolition, or removal of structures or rehabilitation of buildings and other such improvements;
- Working capital
Refinancing or consolidation of existing debt;
- Reimbursement for expenditures made prior to loan approval;
- Specialized equipment that is not essential to the business operation;
- Residential construction or reconstruction unless such reconstruction is intended to convert the building to a business use.
- Routine Maintenance;
- Professional services such as feasibility and marketing studies, accounting, management services, and similar activities.
- Other activities that the Loan Review Board may identify during the administration of the program.
- Speculative investment companies;
- Real estate investment companies;
- Lending institutions;
- Gambling operations;
- Non-public recreation facilities;
- Other businesses not serving the interests of the Village of East Troy;
To be eligible for funding, a project must meet all of the following minimum requirements;
- Private Funds Leveraged – The applicant must leverage a minimum of one dollar of private funds for every one dollar of loan funds requested. Private sector investment is defined as financing from a private lending institution and cash equity that is contributed to the project by the applicant.
- Cost per Job Created – At least one FULL TIME, permanent position must be created for every $20,000 or program funds requested.
- Financial Feasibility and Business Viability – The applicant must demonstrate that the proposed project is viable and the business will have the economic ability to repay the funds
- Low and Moderate Income (LMI) Benefits – The project will provide increased permanent employment or will retain existing jobs which would have been lost locally. Of the jobs created or retained by the project, at least 51 percent must be made available to low or moderate income persons as defined by the U.S. Department of Housing and Urban Development.
- Compliance with Applicable Laws. Applicants will comply with all applicable local, state, and federal laws and codes.
- Project Completion – All projects shall be completed, all funds expended, and all jobs created and/or retained within 24 months from the date of the RLF loan approval. All jobs shall be maintained for a minimum of 12 months.
- Maximum Loan – The recommended maximum amount to be loaned to any one applicant is limited to twenty (20%) percent of the entire project cost.
Terms & Conditions
Loans are available from $5,000 to $100,000. Loans exceeding $100,000 shall be looked at case-by-case.
The interst rate shall be set at the rate currently being offered by the Wisconsin Departmetn of Commerce through its CDBG program. The interest rate shall be fixed for the life of the loan.
Terms of Loans
- Machinery & equipment 2-10 years;
- Buildings and land – 10 to 20 years and;
- Working capital – 1 to 7 years
Contact the ETCDA, for more information. 262-741-8135