The Wisconsin Housing and Economic Development Authority (WHEDA) announced it is designating a new program – the Transform Milwaukee Loan Guarantee Program (TMG) – to provide incentives to lenders to make small business loans in the Transform Milwaukee area, which focuses on the 30th Street Industrial Corridor, Menomonee Valley, Port of Milwaukee and the Aerotropolis.
An additional $3.25 million has been targeted to the Transform Milwaukee initiative. $2.5 million of which is for small business loan guarantees approved in the 2013-15 state budget signed into law by Governor Walker and $750,000 is for loan guarantees provided by the state Department of Justice.
Under the TMG, the maximum guarantee percentage for small business loans made in the Transform Milwaukee area that use the $3.25 million will be increased to 80 percent. This new funding will allow for $18.3 million in total lending in Transform Milwaukee.
“WHEDA is thrilled to offer opportunities that will motivate local small businesses to grow in Milwaukee neighborhoods, infusing new economic life,” said WHEDA Executive Director Wyman Winston.
Another provision of TMG gives WHEDA the ability to examine refinancing transactions with loan proceeds used to refinance debt if the borrower also expands an existing business.