Small Cap TIF Business Loan Program

Small Cap TIF Business Loan Program is sponsored by Madison Development Corporation (City of Madison, WI). This program provides forgivable loan funds for growing businesses within the City of Madison's Tax Incremental Districts (TID).

Small Cap TIF Business Loan Program | Economic Development | City of Madison, WI Small Cap TIF Business Loan Program Madison Development Corporation has forgivable loan funds available for growing businesses in the City of Madison's TID Districts.

MDC will make recommendations to the City of Madison to lend up to $250,000 to qualifying businesses for the purpose of purchasing real estate, financing real estate improvements, or for purchasing capital machinery and equipment. Eligible Borrowers (Qualifying Businesses) Businesses located within one of these City of Madison Tax Increment Districts (TID) : 44, 46, 51, 52, 54, or within the Half Mile Boundary Area.

Contact MMiller2@cityofmadison. com or lending@mdcorp. org to confirm your business is within the mapped boundaries.

Small businesses defined as companies employing between 5 and 100 employees Businesses who intend to stay within the TID Districts for at least 5 years Business must be a for-profit entity Ineligible Borrowers (Nonqualifying Businesses) Lending and investment institutions Golf courses, racetracks or gambling facilities Businesses engaged in any illegal activity per local, state, or federal regulations with federal regulations taking precedence over local or state regulations.

There are two tiers of Small Cap TIF Loan Loans up to $250,000 for real estate purchase, improvement, remodeling or expansion Loans up to $150,000 for machinery and equipment purchases 0% interest for 5-year Term of the Loan Loan Balance to be decreased by 20% each year the Borrower is located and operates within the TID District, and will be fully forgiven at the end of the 5 years from the date that the City's adopted the Loan Authorization Resolution There are no closing fees on the Loan paid by the Borrower.

City will take the most mortgage security interest practicable in real estate and/or a practicable senior lien on machinery and equipment to secure the Loan A personal guarantee is required of all principals with 20% or more interest in business Equity requirement for existing businesses (10% of the total borrowing need) and 20% for start-up businesses The presentation of loan requests will include at minimum the following documentation: A statement of the purpose of the loan and the use of funds A brief history of the cooperative Brief bios of Board members and key staff people.

Financial Statements for the last three years consisting of: Interim Financial Statements A schedule of existing debt and a valuation of available collateral An aging of accounts receivable and accounts payable Projections of income/expense and cash flow of the proposed project A statement of the job retention and creation In addition to the above documentation, the presentation will include a summary of the analysis of the proposal detailing key ratios such as debt to net worth, current ratio, debt coverage, and any irregularities in the business's performance and profitability over time and in comparison to industry standards.

Final loan approval to be provided by the City of Madison's Common Council, who will be presented a synopsis of the credit analysis and recommendation. Loans must comply with goals and TIF Law; no working capital nor loans for operating costs will be provided under this program. Contact Madison Development Corporation, 550 W Washington Avenue, Madison WI 53703, lending@mdcorp.

org , 608-455-0320. Would you like us to keep your email confidential? Wisconsin Public Records Laws may require us to provide your email address to third parties.

If you choose "Yes", you are requesting that we treat your email as confidential, and we will not release it to public records requests. Yes , keep my email confidential. No , do not keep my email confidential.