The Wisconsin Community Development Block Grant (CDBG) Program, administered by the Wisconsin Department of Commerce, provides local government with funds to use for economic development, more specifically, for business start-ups and expansion. These funds, received from the U.S. Department of Housing and Urban Development, are used to provide grants to local units of government that use the funds to loan to a business. The business, in return for use of the public funds, provides private investment towards the assisted activity and most importantly creates job opportunities, principally for the benefit of low and moderate persons.
When a business repays the loan to the community (principal and interest payments), these funds are used to capitalize the Village revolving loan fund (RLF). With the RLF, the Village can make additional loans to businesses wishing to expand or locate in the Village. These loans typically are smaller loans ($5,000 - $50,000). When successfully administered, the community's revolving loan fund can expand the amount in its RLF to an amount in excess of the original amount it was able to retain. This happens when the community exercises due diligence by performing a thorough credit analysis to determine business viability and adequately securing and servicing the loan. In administering a RLF, the Village becomes a "bank" and accepts all of the responsibilities of a commercial lender when it makes a CDBG or RLF loan to a business.
For further assistance and guidance, please feel free to call the Village Administrator at (920) 423-3850.