TIF is an economic development project-financing tool, created to help Wisconsin cities and villages attract industrial and commercial growth in underdeveloped and blighted areas. A city or village can designate a specific area within its boundaries as a TIF district and develop a plan to improve its property values. Taxes generated by the increased property values pay for land acquisition or needed public works.

RLFs are established when state Community Development Block Grant-Economic Development funds are loaned to a local unit of government, which then loans the money to a local business as part of a financial package. As the business repays the funds to the local unit of government, the money can be loaned out from the RLF to other existing businesses within the community or county to finance additional economic development projects.

The amount of funding available in each RLF and interest rate varies in each community or county. The program features long-term, below market, fixed-rate funding.

CDBG-ED is federally funded, state-administered program designed to provide job opportunities to low and moderate-income individuals and expand the local tax base. Grants are awarded to local units of government which loan to businesses for land, buildings, equipment, inventory, assets, stock buyouts and working capital. Maximum amount available is $750,000. Financing requires demonstration of project feasibility and need for financial assistance. The program features long-term, below market, fixed-rate funding.

The EDZ promotes a tax credit program for major business startups or expansions on a particular site in any area of the state that suffers from high unemployment, declining incomes and property values, and other indicators of economic distress. Tax credits can be taken only on income generated by business activity in the zone. The maximum amount of tax credits per zone is $3 million.

An IRB is a municipal bond used by a business to finance facility and/or equipment expansions. The municipality is not responsible for the debt service of an IRB, which carries a below prime interest rate. The bonds are exempt from federal income tax, so they bear lower interest rates than do other forms of borrowing. The program has three application deadlines.

The goal of the RED Early Planning Grant Program is to stimulate the start up and expansion of small businesses in communities throughout Wisconsin. Grant awards of $3,000 or less with a private match of 25 percent, or $1,000. Level II grants awards up to $15,000 if the applicant did not receive a Level I grant. If the applicant received a RED grant before, the grant awards are up to $12,000. Proceeds of the grant may be used only for professional services that include activities such as preparation of a feasibility study, market study or business plan.

WDF helps businesses or business academic consortia finance Phase I product development research. Firms completing Phase I projects can receive Phase II product commercialization funding.

The Wisconsin Trade Project Program can help small export-ready firms participate in international trade shows. The business covers its own travel and lodging expenses. The Department of Commerce can then provide up to $5,000 in reimbursements to a business to cover costs associated with attending a trade show, such as booth fees or cost of transporting display materials to and from the show.

MED is designed to provide financial assistance for Wisconsin business startups or expansions. The goals are to create or retain a significant number of jobs and to leverage a significant level of private capital investment in the state. Eligible applicants include businesses that have either made a firm commitment to locate in Wisconsin or businesses that are expanding within Wisconsin.

Each year under the SBIR, 11 federal agencies ask for proposals to solve more than 2000 research problems in more than 120 technology areas. Research funding is available to businesses, with 500 or fewer employees, to develop an innovative solution that addresses these problems or is of interest to the federal government. Up to $40,000 in funding is available to SBIR Phase I product development winners to maintain research operations while awaiting Phase II product commercialization federal funding decisions.

The 504 Loan Program provides long-term, fixed-rate financing through certified development companies to small businesses to acquire real estate, machinery and equipment for expansion of business or modernizing facilities. Loan proceeds are provided: 50 percent by an unguarantied bank loan, 40 percent by an SBA-guaranteed debenture, and 10 percent by the small business customer. The maximum SBA debenture is $1 million.

Section 7(a) of the Small Business Act authorizes the SBA to guarantee loans to small businesses that cannot obtain financing on reasonable terms through normal lending channels. The SBA basic guaranty program is designed to promote small business formation and growth by guaranteeing long-term loans to qualified firms. Loans are available for real estate, expansion, equipment, working capital or inventory. The SBA can guarantee as much as 80 percent on loans of up to $100,000 and 75 percent on loans of more than $100,000. In most cases, the maximum guarantee is $750,000. The interest rate does not exceed 2.75 over the prime lending rate for loans with maturities of seven years or longer. Maturities are up to 10 years for working capital and up to 25 years for fixed assets.

The purpose of LowDoc is to reduce the paperwork involved in loan requests of $100,000 or less. Under LowDoc the SBA uses a one-page application, offers rapid turnaround on approvals for loans of up to $100,000, and relies on the strength of the individual applicant's character and credit history. The SBA will guarantee up to 80 percent of the loan amount. The program is available to business startups and to businesses with average annual sales for the past three years not exceeding $5 million and with 100 or fewer employees, including affiliates.

SBAExpress loans help small businesses start, build or grow. The SBA's general policy requires guaranteed loans to be fully secured: with SBAExpress, lenders may approve unsecured lines of credit up to $25,000. Maturities are up to 10 years for working capital and up to 25 years for fixed-assets. The interest rate does not exceed 2.75 over the prime lending rate for loans with maturities of seven years or longer. The maximum loan amount is $150,000.

To qualify for SBAExpress, a business must meet the SBA's size standards, which are based on the average number of employees over the preceding 12 months or the average sales over the previous three years. The agency publishes size standards for specific standard industrial classification (SIC)codes.

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