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United States : Governor Walker Announces $10 Million Available to Help Contractors Access Capital
Publish Date : 17-Aug-2018
Governor Scott Walker announced $10 million is available to contractors through the Wisconsin Housing and Economic Development Authoritys (WHEDA) Contractors Loan Guarantee (CLG) program. WHEDA will partner with local lenders to guarantee 50 percent or up to $750,000 on new loans, helping contractors pay expenses for working on qualified contracts.
We want every business, large and small, to have the opportunity to grow in Wisconsins booming economy, said Governor Walker. Through the modified CLG program, small and disadvantaged businesses will have greater access to capital for tools, equipment, and payroll for construction projects across the state, including those in Wisconn Valley. This has the potential to help more businesses benefit from Foxconns $10 billion investment in Wisconsin. When matched by financial institutions, the impact of the CLG could result in $20 million of capital available to contractors for bidding on construction projects in Wisconsin.
The CLG is designed to help address one of the biggest barriers for contractors bidding on construction projects limited access to capital. WHEDA, along with its lending partners, will make access to capital quicker and more affordably through this program. The CLG helps reduce financial risk for the lender while ensuring that Wisconsin contractors have access to funding.
Program enhancements include:
Streamlined application The loan approval process has been streamlined and simplified. WHEDA will be utilizing an eligibility checklist that will take approximately one week to approve. Expanded eligibility The CLG will now be open to general contractors and subcontractors who meet the eligibility criteria.
Reduced fees The only fee will be 3% on the guaranteed amount of the loan at closing. There will no longer be an annual servicing fee.
WHEDA is prepared to assist contractors and subcontractors looking to benefit from Foxconns economic ripple effect with this financial tool which can ease the pathway to securing necessary loans for their businesses, said Governor Walker.
WHEDA and the Wisconsin Department of Workforce Development are hosting free Wisconn Valley Capacity Building Sessions to educate small and disadvantaged businesses, including those owned by women, minorities, and veterans looking to use the CLG and other state resources to compete for work with Foxconn and other statewide contract opportunities.
