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

Source: City of Madison

As the COVID-19 crisis stretches on, there is no question that many small businesses are suffering. During this time of reduced hours, closures and decreased consumer spending, it is critical that the City of Madison act to support its small businesses owners.

Today the City of Madison is committing $100,000 to match Kiva small business loans.

Kiva is an international, non-profit, crowdfunding platform for small businesses. Community members lend money to local businesses at 0% interest with no fees. Businesses use the funding as working capital, and then pay back their lenders each month. Community lenders can loan as much as they would like starting at $25.

For qualified owners, loans from $1,000-$15,000 will be available through Kiva with the City of Madison matching the amount raised at no cost to the business owner.

Businesses endorsed by the following organizations can receive the match:
• Madison Black Chamber of Commerce
• Hmong Chamber of Commerce of WI
• Latino Chamber of Commerce of Dane County
• Madison Cooperative Development Coalition
• Wisconsin Women’s Business Initiative Corporation (WWBIC)
• Dane Buy Local
• Madison Central Business Improvement District (BID)

Kiva micro loans can be a game changer for entrepreneurs who face barriers to accessing traditional means of capital. The nonprofit started in 2005 with the purpose of helping communities thrive through crowdfunding loans, community members and lenders from around the globe can provide a small amount of money to help the business reach their funding goal. Kiva’s mission is to support and fill the gap for entrepreneurs whose businesses need assistance and who do not have the funds to do so.

“Madison’s small businesses and entrepreneurs are a critical part of our economy. They drive job creation and provide opportunities for wealth building in communities of color. During these unprecedented times, it is up to us all to find ways to support them,” says Madison Mayor Satya Rhodes-Conway. “The beautiful thing about investing in Kiva is we are creating community action. Collectively the City of Madison is saying to these entrepreneurs – we believe in you and are here to support you.”

Madison became a Kiva city on January 1, 2019 through a partnership with Madison Gas and Electric and WWBIC. Partners made a three-year commitment to support the administration of the program through WWBIC.

Kiva Greater Madison is also looking for the City of Madison community to invest in their city. Residents and businesses are encouraged to participate in Kiva’s crowdfunding, which will make a direct impact and creates a culture of inclusive economic development. By making an investment, they contribute to the organic growth of the place they call home.

Borrowers: If you are interested in a Kiva, no interest/no fee loan, please visit: kivaushub.org
Small Business Supporters: Become a Kiva lender! Lend as little as $25 to a local business. Visit: kivaushub.org
Funder or Corporate Partners: Corporations or grant funders can help us increase the match dollars available by lending to the match fund. Contact Ruth Rohlich, City of Madison Dept. of Economic Development: rrohlich@cityofmadison.com.

Contacts
Ruth Rohlich-City of Madison, 608-698-7884, rrohlich@cityofmadison.com
Wendy K. Baumann -WWBIC, 414-395-4530, wendy.baumann@wwbic.com
Michelle Sherbinow-Kiva Madison , 608-257-5450 , michelle.sherbinow@wwbic.com

Source: Wisconsin Small Business Development Center Network

An initiative to build profitable farm businesses in Wisconsin is launching with events this summer and fall. Financial management boot camps and customized consulting for farm-based entrepreneurs will be provided by the Food Finance Institute (FFI) and the Wisconsin Small Business
Development (SBDC) Network. Both programs are part of the University of Wisconsin System’s Institute for Business & Entrepreneurship.

To broaden the impact, the initiative will start by creating a pool of specially trained farm-focused consultants who have the skills and expertise to address complex farm financial situations and diverse business models. These consultants will be trained in July and August to provide one-on-one consulting to farm-based businesses across the state.

Additionally, on Aug. 25, FFI Executive Director Tera Johnson will conduct the “Farm-Based Business Sector Opportunity and Trends” webinar that will showcase the scope and impact represented by farmer entrepreneurs. The target audience is consultants and economic development professionals, but registration is open to all.

“Diversified farm and farm-related enterprises are emerging out of a changing farm economy,” Johnson said. “Often with a next generation of family members involved, these farms are adapting their farming practices and business models to include things like grazing, agritourism or direct sales to consumers. These new enterprises have unique and often complex financial needs.”

As a result, farm entrepreneurs need targeted financial technical assistance to reposition for profitability and prepare to successfully raise money from banks, investors and grants. “This initiative will help us work with these farm entrepreneurs and build out the technical assistance infrastructure we need to support this important driver of rural economic development in our state,” Johnson added.

The farm industry, historically vital with over 40 percent of the state’s land, has been transforming for decades. Agriculture contributes over $104 billion to the Wisconsin economy and employs 435,700 (or 11.8 percent) of the workforce – 154,000 of those jobs are related to on-farm production, according to the 2017 Census of Agriculture by the U.S. Department of Agriculture.

Where the opportunity lies: Of the 64,000 farms, 60,000 make less than $499,999 and 48,913 have sales less than $99,000, indicating strong growth potential for the majority of small farms and farm-based businesses. Farmers are making tough decisions to transition or close down farms when they would prefer to stay in business or pass a profitable enterprise on to the next generation.

The first farm financial management boot camp will be Nov. 17 to 20, combining industryspecific training, peer networking and one-on-one consulting. The curriculum and approach were developed by Johnson, with support of this grant, using her decades of experience working
with farm businesses and organizations across the country. Sessions include instruction and one-on-one consulting to help participants optimize their business model, fix their financial infrastructure, and develop a financial and financing plan.

The Wisconsin SBDC Network offers no-cost, confidential consulting and business education to new and existing businesses. In 2019, the SBDC served 4,658 clients, resulting in $91.3 million in capital investment, 300 new businesses and 19,717 jobs supported. This farm initiative is funded through the U.S. Small Business Administration. The network also offers other niche initiatives: Go Global, Food Businesses and Restaurants.

To learn more, go to www.wisconsinsbdc.org/farms or contact Shelbie Blank at 608-890-0780 or
shelbie.blank@wisconsin.business.edu.

Madison, WI – The Madison Region Economic Partnership (MadREP) continues its partnership with the Wisconsin Economic Development Corporation (WEDC), Wisconsin’s eight other regional economic development organizations (EDOs) and UW-Oshkosh to create and distribute a data collection tool to businesses in the Region who are experiencing economic hardship due to the COVID-19 pandemic.

The fourth observation period of a statewide survey, measuring the economic impact of the COVID-19 pandemic on Wisconsin businesses, is underway. The survey is open – for both past participants and new participants – until July 20. 

Those businesses who took part in the initial observation period should go to http://uwo.sh/covid-19-econ-july to share their current situation. Interested businesses who previously did not participate are encouraged to do so at http://uwosh.edu/ccrs/covid-19-survey.

According to MadREP President Paul Jadin, this next survey will also focus on how comfortable Wisconsin businesses are with reintroducing pre-pandemic practices to inform state and federal stakeholders on where support is still needed. “As Wisconsin continues to reopen, we need to understand how comfortable businesses feel with engaging in ‘normal’ activities, such as in-person meetings and travel. If businesses are not yet comfortable, we need to understand what factors need to be in place before they will take those next steps.”

Survey results from businesses responding to the third sampling period (June 1-13, 2020) showed continued resilience with 41 percent of respondents introducing or expanding online services over the last three months. Similarly, businesses continue to seek financial assistance, with 60 percent of respondents requesting assistance and 52.4 percent receiving aid. Estimates of business survivability also increased, with only 10 percent of respondents estimating survivability of less than three months.  The results are available at https://uwosh.edu/ccrs/covid-19-survey/.

 

Source: IB Madison

A recently released report from the Dane County Regional Airport stated 7,154 passengers boarded airplanes in May of this year compared to 102,892 passengers from May 2019. The decrease is due to COVID-19-related travel restrictions.

Year-to-date numbers show passenger departure traffic down nearly 47% and passenger arrival traffic was down nearly 45% compared to year-to-date figures for the same period of 2019.