By Anthony T. Busch, SCORE Member, Member of the Outagamie County Revolving Loan Fund Loan Committee
In their search for sources of borrowed funds, many business owners don’t consider the Outagamie County Revolving Loan Fund, also known as the Outagamie County Prosperity Fund. Outagamie County Executive, Tom Nelson, enthusiastically supports this fund as a means to provide needed capital to entrepreneurs who are starting or growing their businesses in Outagamie County. In a statement on-line at www.outagamie.org Nelson said, “from day one, a top priority has been doing all we can to foster economic development and job creation in our community (Outagamie County). This fund affords us the opportunity to help local businesses expand a business or start a new one. As our national recovery gathers strength, we’re doing our part in northeast Wisconsin.”
The $300,000 revolving loan fund (RLF) will help local businesses structure financial packages to start up or expand existing operations, where conventional financing is limited. Interest will be pegged to the Prime rate. Repaid principal and interest will be recycled, growing the fund and making more loans available to other businesses. The loans can also make businesses more attractive to the primary lender by reducing their risk exposure.
Applicants can go to the web site shown above to complete an application. As much as 25% of needed capital may originate from this fund, with $10,000 being the minimum and $70,000 being the maximum. A complete business plan is required for all start-up businesses and must include three years of detailed financial projections. The term of these loans is between three and seven years amortization and no prepayment penalties. With few exceptions, funds are available to all for-profit businesses. Funds may be used for working capital, inventory, equipment or real estate.
In order for the Outagamie County Loan Committee to approve a request, the primary lender to the borrower must provide the Committee with a copy of their approved credit evaluation. The Prosperity Fund is known to almost all business lenders in Outagamie County and has worked successfully with several lenders in the last two years to fund their requests. The Loan Committee will meet as needed to evaluate the request submitted by entrepreneurs living in or moving to Outagamie County. Response time is efficient.
Funding of $300,000 was made possible by Outagamie County taking advantage of revenue generated by the closure of Tax Incremental Financing District 3, Village of Little Chute, Outagamie County. By designating these funds to the Prosperity Fund, the Outagamie County Board is demonstrating their support for the local economy by making new business and new business expansion possible and creating and retaining jobs in our community.
SCORE, a nonprofit group of volunteers with business backgrounds, stands ready to assist any business owner as they prepare their business plan for consideration by a business lender and the Outagamie County Loan Fund/Prosperity Fund. You can go to www.foxcities.score.org to complete a request for free confidential mentoring assistance. Be certain to be as articulate as you can when describing the nature of the assistance needed. This detail will aid in assigning a mentor to you that has the appropriate expertise to assist you with your business venture. SCORE, for the life of your business.