Fitchburg Biz Boost Loans Available to Fitchburg Businesses

Source: City of Fitchburg CEDA

The City of Fitchburg Community and Economic Development Authority’s (CEDA) Forward Fitchburg Biz Boost Loan Program is available for local small businesses to utilize as they reopen from the COVID-19 crisis. Funds for this loan program are being provided from the City’s existing Revolving Loan Program for this purpose. The focus of this loan program is to help local businesses reopen after the COVID-19 “Safer at Home” order in conjunction with the WEDC Reopening Guidelines, Dane County Public Health and Forward Dane Reopening Plan. The loan program prioritizes the small, local, non-essential categorized businesses who are able to reopen per Dane County Public Health.

For this Forward Fitchburg Biz Boost Loan Program, CEDA has made $150,000 of funds available to support small businesses located within the City of Fitchburg with their operations and costs associated with reopening their businesses. The loan amounts will range from $1,000 to $10,000
and will depend on the number of applicants and funding requests.

Application Eligibility:
Program funds are limited. Eligible applications are due 4:30 pm on the 15th of each month through December 15, 2020 or until funding is no longer available, whichever comes first. Signed and completed applications can be dropped off at City Hall in the drop-box or can be emailed to
Michael.Zimmerman@Fitchburgwi.gov and will be reviewed on an as-needed basis. The number and amount of loans will be dependent on applications received, eligible applicants, the amounts requested, use of funds, and supporting documentation. This loan program is available to small
businesses located in the City of Fitchburg that meet all of the following criteria:

 Experienced substantial financial impact due to COVID-19.
 Existing for-profit commercial business in the City of Fitchburg with a bricks and mortar presence (such as a retail storefront or office).
 A locally owned franchise, not a corporate owned franchise, which has an Employer Identification Number separate and distinct from any other business, is also eligible.
 Employ 25 or fewer full-time equivalent (FTE) positions. (2,080 hours in one year = 1.0 FTE) Preference will be given to those businesses employing 15 or fewer full-time equivalent (FTE) positions
 In business during 2019 with preference given to established businesses and those that were located in Fitchburg as of January 1, 2019. Businesses opened for part of 2019 will be considered, contingent upon meeting other program guidelines and based on satisfactory financial statements.
 Managed a financially healthy business operation in 2019. (Cash flow revenue exceeds cash expenses without owner support)
 The business is not delinquent as it relates to property taxes, personal property taxes, municipal utility bills, fees, special assessments, sales tax, unemployment compensation taxes etc.
 Less than $1 million in revenue in 2019. May provide satisfactory financial statements for a single location to determine eligibility. EIN entity is responsible for loan repayment. Each EIN is limited to one loan application.

Ineligible Business:
 Taverns and bars without food service
 Commission-based businesses
 Non-profits/Tax exempt
 Home-based businesses

Eligible Expenses:
The following items are eligible for the loan program funds if the expense occurred May 15, 2020 or later and is consistent with the WEDC Reopening Guidance and Guidelines and Forward Dane Reopening Plan:
 Wages/Salaries excluding payroll taxes
 Utilities
 Lease/Mortgage payments
 Uniforms
 Marketing or advertising
 Inventory or supplies
 Personal Protection Equipment
 Cleaning Supplies
 Space or business modifications necessary based upon the WEDC Reopening Guidance and Guidelines

Ineligible Expenses:
The following items are not eligible for the loan program funds:
 Fuel
 Past due leases, loan or utility payments, payroll, payroll taxes and employee benefits
 Vehicles and Vehicle maintenance
 Payment of Investors
 ATM Fees
 Personal or Business Distributions
 Loan payments (except for mortgage payments)
 Sales Tax Payments

Terms of Financing:
 Loan amount minimum of $1,000, maximum of $10,000
 Interest rate of one (1) percent per year beginning January 1st 2021 calculated monthly. No interest is accrued from the date the loan is finalized through the end of 2020.
 Payment period: Loan payments will be deferred for the remainder of 2020. First payment is due on or before the last day of each month beginning January 31st of 2021 and continue through December 31st of 2022. Businesses awarded a loan are responsible for making monthly payments to the City of Fitchburg Finance Department on time. No invoices will be sent.
 From approval date of the loan until December 31, 2020, payments will be accrued.
 Length of the loan: Two (2) years or twenty four (24) payments.
 Payments will be in equal amounts for each month and a payment schedule will be provided by the City when the loan is issued.
 Loan agreement will include specific provisions upon a missed payment, including interest rate increasing to 6% on the remaining balance of the loan and immediate repayment of full balance of the loan.
 Any default of the loan payment may result in the applicant (business or person) to be ineligible for any future financial assistance from the City of Fitchburg
 There will be no penalty for early repayment of the loan
 In the event that the borrower intends to sell or transfer the ownership of the business described above, the note is due in full, with interest if accrued, prior to the sale or ownership transfer. This loan is non-transferable.
 Final terms shall be set by the loan review committee

Submission Instructions
1. Deadline for application, financial materials and affidavit must be submitted to Michael Zimmerman on or before the 15th of each month by 4:30 pm. through December 15, 2020 or until funding is no longer available, whichever comes first.
2. Application and financial materials can be delivered to the Fitchburg City Hall, 5520 Lacy Road and placed in the drop box in the vestibule or emailed to Michael.Zimmerman@Fitchburgwi.gov

Notification to Recipients
 Applicants will be formally notified by email as to the loan approval or denial
 Award notifications are expected to be completed monthly or on an as needed basis
Disclaimer
 The loan review committee has the right to request additional information based upon its
review of the businesses application
 All documentation submitted is subject to open records

Learn more and apply at: https://growthzonesitesprod.azureedge.net/wp-content/uploads/sites/957/2020/07/FF-Biz-Boost-Loan-Packet.pdf