Forming a Western Wisconsin Regional Revolving Loan Fund: To increase lending, reduce the administrative burden on local RLFs and maintain the region’s competitiveness with other regions of the state (At least four other regional RLFs have already formed in Wisconsin since 2006 and more are in the process of forming) the Wisconsin Economic Development Corporation (WEDC) sponsored the first regional RLF meeting in Western Wisconsin on January 31st 2012. Since then thru May 23, 2013, ten meetings and two teleconferences were held with participating counties, communities and economic development organizations. During these meetings opinions on the creation of a regional RLF were varied but two key concerns were expressed. They were: (1) For a Regional RLF to be accepted in Western Wisconsin local decision making on loans needed to be incorporated into the Regional RLF structure and (2) Safeguards needed to be established to prevent an unusually high concentration of funds being loaned to any one county or community. To accommodate these concerns the proposed administrative structure for a Western Wisconsin regional RLF as described in this Manual involves a regional board that would make loan decisions on loans of $200,000 or more, since this would be a significant amount of the total funds available for lending. The Regional Board would be comprised of one board member appointed from each county revolving loan fund committee. The County or Community RLF Loan Committees would make loan decisions on loans less than $200,000. Lending thresholds have also been established based on a county’s population or the amount of funds contributed to safeguard a high concentration of lending going to any one county. The Regional RLF will also contract with a program Administrator to market and administer the fund in a uniform manner throughout the region. The following persons are acknowledged for taking the time to attend one or more of the meetings and providing valuable input into this regional RLF administrative manual. Regional Revolving Loan Fund Meeting Participants Terry Mesch, Pepin County Economic Development Rachel Hansen, Vernon County Treasurer Adam Sontag, Hillsboro City Administrator Sara Westbrook, La Crosse Area Development Corporation Herbert Cornell, Vernon County Chair Ken Witt, Sparta City Administrator Jo Ann Miller, Pierce County Administrator Roger Niefieldt, Vernon County RLF Committee Lynn Hanson, Kendall Village Clerk Chris Hanson, Tomah Chamber of Commerce Jaekel, Vernon County RLF Committee Amy Rindahl, City of Treasurer Brian Fukuda, Community Development Specialist, La Crosse County Bill Warner, Pierce County Economic Development Corporation Jeff Goelke, Vernon Economic Development Association
Innovation Fund - Must be technology or high knowledge business possessing and/or developing a proprietary product, service or intellectual property with strong market outlook, and likelihood to attract follow-up funding. Patient debt and/or equity financing for emerging innovation companies for working capital. Funding could be a loan, equity position or combination of the two. $25,000 - $250,000 Prime rate plus 2 to 8 percentage points. Warrants or conversion rights on a percentage of loan may be taken. Working capital with payback expected within 5 years. PG CG Mortgage Lien GBSA Stock Ownership Not to exceed 50%, the 50% should come from other equity investors