WBD & SBA Financing
Although most of Intercity State Bank’s Commercial loans are done with conventional financing, sometimes that conventional financing may be difficult to obtain. In those situations, Intercity State Bank participates with other various loan programs that are available.
We have worked with Marathon County Development Corporation (McDevco) and Central Wisconsin Economic Development Fund (CWED) to help provide additional resources or down payment assistance for companies through their Revolving Loan Fund. They offer a 2% fixed rate over a longer loan term. Their area of focus is in job creation and typically lend up to $10,000 for each job created or retained and will not exceed the amount of the lead bank’s participation.
When a business is purchasing, constructing or expanding a facility or making a large equipment purchase, we have partnered with Wisconsin Business Development Corporation (WBD) and their SBA 504 Loan Program. This program helps your business by having 30-40% of the costs financed on a long term fixed rate note, and helps the bank by allowing us to be in a first lien position at up to 50% of the costs. Depending on what exactly is being financed, they require a 10-20% down payment. However, some of that down payment may be covered through CWED.
SBA is now starting to implement a new program called the 8(a). This program is designed to assist socially and economically disadvantaged individuals. The program can assist your business by offering counseling and also by monitoring your business plan. It also looks for opportunities to assist with obtaining some government contracts for your business.
Intercity State Bank still participates with the SBA 7(a) program. This program gives a guaranty to the bank for 75% of the outstanding balance. We have used this program when loans do not fit standard collateral guidelines.
All of these programs have both advantages and disadvantages depending on what and how much you are financing. Different programs are designed for different business and I can help you decide which one would work the best for you. Always feel free to contact me with any questions.
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