The WHEDA Small Business Guarantee is an inexpensive financing option
designed with your business in mind. It's fast, easy to use, and
gives you the comfort of working with your hometown lender.
- Does my business qualify for a WHEDA
Small Business Guarantee?
It probably does if you answer
"yes" to four simple questions:
- Is your business unable to
obtain conventional financing at reasonable terms?
- Are you actively engaged in
your business?
- Does your business employ 50
full time employees or fewer?
- Will your project create or
retain jobs?
- What is a "guarantee" and how
much is available to my business?
A guarantee is a pledge of
support on a bank loan. WHEDA will guarantee a portion of a
loan made to you by your local lender. Your maximum WHEDA
Small Business Guarantee is the lesser of 80% or $80,000 on loans up
to $250,000 for revolving working capital.
- How can I use a WHEDA Small Business
Guarantee?
Use a WHEDA Small business
Guarantee to expand or acquire a new business. The guarantee
can also be used for financing needs such as fixed asset purchases,
working capital, and refinancing business notes.
- Are start-up businesses eligible?
A WHEDA Small Business
Guarantee can be used to start a day care business or a start-up
business involving a vacant storefront located in the downtown area
of a rural community. If a downtown storefront has housing,
the guarantee can finance your entire project as long as your
business occupies at least one floor of a building that is no more
than four stories.
- What kinds of fees are charged?
- $200 application fee
- Closing fee:
*
1% of the guaranteed amount on loans of $150,000 or less
*
Or, 2% of the guaranteed
amount on loans greater than $150,000
- Annual servicing fee of .25%
based on the outstanding guarantee balance
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