Tuesday night, the Common Council unanimously approved a small loan program for Mequon small businesses. Many years ago, the City received federal funds for a business loan program. The loan pool is replenished as loans are repaid. The program previously had the normal red tape that you would expect from a federal program. However, due to some loosening of federal restrictions, and in connection with this economic disaster, the City has the opportunity to make it now available simply, more quickly and in small increments.
There are a lot of businesses that are suffering. The loans the City can offer clearly are not a full solution, but they might provide the bridge that allows a business to survive or revive.
Here is a basic summary of the terms:
ELIGIBILITY: Any business with operations open to the public in the City of Mequon. Had to be open prior to January 1, 2019. Must have been in a good financial condition before the emergency order. Maximum 25 FTE employees as of the beginning of the emergency order.
EXCLUDED BUSINESSES: Speculative investment companies. Real estate investment companies. Lending institutions. Businesses owned by members of the Common Council, the Economic Development Board or officials and staff involved in the program.
APPLICATION: Simple city application with financial statements (both for the business and guarantors – 2019 and 2020 to date)
LOAN AMOUNT: Not to exceed $15,000 (there are also three loans available for $5,000 each).
INTEREST: Interest free through June 30, 2021. 1% per year thereafter.
TERM: 5 years. May be prepaid at any time without penalty.
GUARANTY: From each principal owning 20% or more of the equity interests in the business.
Applications will be reviewed and approved or denied within five business days of receipt. The City will be prepared to close promptly after approval. Loans must be closed within five business days of approval. The City hopes to make this process even faster.
The Common Council approved $150,000 for this program. Depending on its success, there is an opportunity for additional loans when and if that amount is fully used.
The City will begin processing applications on TUESDAY, MAY 5. However, applicants can receive applications and other information before then by contacting:
Director of Development
City of Mequon
Please pass this on to business owners you know who could use this bit of assistance.
“Many of life’s failures are people who did not realize how close they were to success when they gave up.”
“Every strike brings me closer to the next home run.”
– Babe Ruth