Tools for Financing Your Business
FUNDING FOR YOUR BUSINESS PLAN
The Department of Commerce offers two programs to help offset the cost of creating a business plan. Entrepreneurial Training Grant Program
Grants are available to help all levels of entrepreneurs develop the business skills necessary for success. Offered through the Small Business Development Centers, the courses address legal and financial issues, staffing, accounting, record-keeping and marketing. Individual counseling and coaching will be available to help entrepreneurs complete a business plan and prepare them to request financing from banks, investors an dpublic institutions. Grants can cover up to 75% of eligible tuition costs (the tuition charged by the SBDC). Participants will be required to provide a cash match of at least 25% of the eligible tuition costs. For more details, contact the Wisconsin Entrepreneurs' Network (WEN) or call 608-263-0398.
Early Planning Grant
Individuals planning to start a new business or expand an existing business in Wisconsin can receive financial assistance for evaluating the feasibility of those activities. EPG grants can help cover a portion of hiring the cost of a qualified, independent third party to develop a comprehensive business plan. Types of eligible business activities include: - Automation
- Agriculture/Food Products
- Biotechnology
- Information Technology
- Manufacturing
- Medical Devices
- Paper/Forest Products
- Printing
- Tourism
- Out-of-Home Childcare
For more details, contact the Wisconsin Entrepreneurs' Network (WEN) or call 608-263-0398.
Personal Sources of Financing
Personal sources of funds may include checking and savings accounts, personal loans, second mortgages, profit sharing, retirement accounts from former jobs, certificates of deposit, personal assets that can be sold, or credit card borrowing.
Debt Financing
Debt financing means borrowing money to be repaid over a period of time, usually with interest. Banks are the primary providers of formal loans. These institutions will require collateral, be concerned with your character and reputation, want to know about the cash flow of the business, and your willingness as the borrower to risk your own money. Equity Financing
Equity Financing describes an exchange of money for a share of business ownership. Types of early-stage equity investing include angel investors, venture capital firms, and certified capital companies. More information is available in the Commerce publication Venture Financing: Raising Capital in Wisconsin. Credit Counseling
If you have had credit problems in the past, you may want to work with a Credit Counseling Service. These organizations help to get your finances in order, set up a budget, or arrange to pay accounts. They are often available at low cost. Contact the Wisconsin Department of Financial Institutions (DFI) at 608-261-9555 or visit us on the Web. Department of Commerce
For more information on the different grants and financial assistance programs available through the Wisconsin Department of Commerce call the business helpline and request the free publication Financial Resources for Businesses and Communities. 1-800-HELP-BUSiness Agricultural Development Zone (ADZ)
The ADZ program provides tax incentives to new or expanding businesses involved in Wisconsin's agricultural sector. Minority Business Development Fund
The Minority Business Development Fund offers low-interest loans for startup, expansion or acquisition projects. To qualify for the fund, a business must be 51-percent controlled, owned, and actively managed by minority-group members, and the project must retain or increase employment. Rural Economic Development Program
The Rural Economic Development Program is for businesses with less than 50 employees that is either located in a city, town or village with 6,000 people or less or located in a county with a population density of less than 150 persons per square mile. The program is designed to provide working capital or fixed-asset financing for businesses. Technology Zone Program
The Technology Zone Program provides tax incentives to new or expanding businesses involved in Wisconsin's high-technology sectors. More details on these and other Department of Commerce financial programs can be found on the agency's Web site. OTHER FINANCIAL RESOURCES Impact Seven
Impact Seven is a statewide, public, nonprofit community development corporation committed to helping Wisconsin companies start, grow and thrive.
http://www.impactseven.org
608-251-8450 Small Business Administration
The SBA works with other lending institutions to providing financing when funding is otherwise unavailable. For details on SBA loans, contact one of the SBA offices.
http://www.sba.gov
608-441-5263 or 414-297-3941 Wisconsin Department of Veterans Affairs
The WDVA Personal Loan Program offers veterans personal loans at low interest rates of up to $15,000 with 10 years to repay.
http://www.dva.state.wi.us
1-800-WIS-VETS or 1-800-947-8387 Wisconsin Housing and Economic Development Authority - WHEDA
The Wisconsin Housing and Economic Development Authority (WHEDA) serves Wisconsin residents and communities by working with others to provide creative financing resources and information to stimulate and preserve affordable housing, small business, and agribusiness. WHEDA has several small business financing programs.
http://www.wheda.com/sb_ag.asp
1-800-334-6873 Wisconsin Women's Business Initiative Corporation - WWBIC
WWBIC offers small business loans with a maximum loan amount of $35,000 and focuses on pre-loan business assistance.
http://www.wwbic.com
414-263-5450 or 608-257-5450 Wisconsin Business Development Finance Corporation - WBD
WBD provides loan packaging and loan services such as finding appropriate and affordable financing, credit analysis, and preparing loan applications. WBD is the primary lender of the SBA 504 loan program.
http://www.wbd.org.
1-800-536-6799 Wisconsin Community Action Program Association - WISCAP
WISCAP offers Individual Development Accounts which are dedicated savings accounts opened at participating financial institutions by eligible, working, low-income persons. Funds are "matched" and can be used to start a business.
http://www.wiscap.org
608-244-4422 Small Business Innovative Research and Small Business Technical Transfer Programs - (SBIR/STTR)
SBIR is a highly competitive program that encourages small business to commercialize new technology. Through a competitive grant application, SBIR funds the critical startup and development stages and encourages the commercialization of technologies, products, or services. To learn how to qualify for the SBIR/STTR program or to receive announcements on available research and development funds, contact the SBIR Program. http://www.wisconsinsbir.org/
1-800-940-7232 or 608-263-7680.
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