What kind of loans do you offer?
Do you have grants?
Where do I find a list of city properties for sale?
What other financing options are there?
How can I develop my workforce?
What kind of loans do you offer?
MEDC makes loans in partnership with banks to help finance the purchase and renovation of buildings, new construction, and equipment. Interest rates on MEDC loans are below market and MEDC generally subordinates its collateral position to the participating bank.
MEDC does not offer grants for starting a business; however, the Department of City Development (DCD) does provide several matching grants. See Retail Investment Fund (RIF) and the Façade Grant on its website: www.mkedcd.org under the heading "Business Tool Box". Information on matching grants for environmental testing is also on the DCD web site.
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I want to relocate my business. What incentives does MEDC or the City have to offer?
MEDC offers below market interest rate financing to businesses in partnership with conventional lenders. Also, the Department of City Development can assist with state and federal tax credits that are available to businesses. You can get more information on its website: http://www.mkedcd.orgreturn to top
Listings of available properties and buildings for lease or sale in Milwaukee can be found at: http://www.choosemilwaukee.com. In addition, The Department of City Development maintains a list of available city-owned sites and sites for brownfields redevelopment on its website: http://www.mkedcd.org
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I want to start a business. How do I get started?
Here are some steps to get you started:
- Check your credit score (there are free sources on the internet) to make sure your credit score is 600-700.
- Gather your financial information: 3 years of tax returns and make a list of what you own and what you owe because you will have to fill out a personal financial statement.
- You will need equity capital to start a business. For most start ups this will be in the form of cash (i.e., personal savings or investor funds). If you don't have available equity, you wil not be able to fund start up sales growth and banks will not lend money into a project where the owner has little or no personal funds invested.
- It's helpful to have a secondary source of income or resources when you get started so you don't have to make a living from the business at the outset.
- Develop a viable business idea and back it up with solid knowledge of the market you are entering.
- Have experience working in that industry.
- There are a variety of classes you can take that will teach you how to get started. They are offered through the local U.S. Small Business Administration office; the local Small Business Development Center; Wisconsin Women's Business Initiative Corporation; and the Multicultural Entrepreneurial Institute.
- Read! Gain knowledge! Be open to ideas on how to run a business.
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What other financing options are there?
In addition to direct financing, loan guarantees are available from federal, state and local governments. Government loan programs usually require that a bank is involved in the project as part of the application for financing from the government entity.
The most popular business loan guarantee program is from the federal U.S. Small Business Administration (www.sba.gov). The U.S. Small Business Administration (“SBA”) provides loan guarantees of bank loans to small businesses. The SBA also offers the 504 Debenture Program, which provides long-term, fixed-rate loans for owner-occupied business real estate purchase or construction and equipment purchases. The 504 Debenture Program will finance as much as 40% of the project cost. The bank and the borrower provide the remaining 60%. The website for a local provider of 504 Debenture loans is www.wbd.org.
The federal U.S. Treasury Department has established federal tax credit programs that may be used as sources of equity for down payments on projects or as low interest loans. The most widely recognized tax credit program is the New Markets Tax Credit (“NMTC”) Program. MEDC provides a low interest rate loan in census tracts that meet the criteria established by the New Markets Tax Credit Program. Other Wisconsin organizations also provide loans or equity resources.
The State of Wisconsin has business loan programs that, although very specific in terms of use, play a role in some transactions. State loan programs are provided by the Wisconsin Economic Development Corporation (commerce.wi.gov/wedc/) or from a quasi-public/private agency called Wisconsin Housing and Economic Development Authority (www.wheda.com).
With the exception of its Capital Access Program MEDC programs are only available for business projects located in the City of Milwaukee. Other communities may offer loan programs similar to those of MEDC. Check with the local economic development organization in the community to see what is available.
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How can I recruit and upgrade my workforce?
The Milwaukee Area Workforce Investment Board (MAWIB) is a coordinating, monitoring and planning organization that facilitates training resources and employment search resources for employers and jobseekers by connecting the two interests through partner agencies, the HIRE Center, or MATC. One of the more recent developments in employment resources is the launching of QuietAgent – a state-of-the-art employment matching system that allows employers, or jobseekers, to quickly and easily create detailed searches for qualified personnel. It allows the employer to instantly identify the most qualified and mutually interested candidate using next-generation technology with a simple, secure and efficient online solution. For more information, contact MAWIB at http://www.milwaukeepic.com
