Entrepreneurs have another tool to start or expand a small business with the Brown County MicroLoan Program rolled out Monday by the economic development division of the Green Bay Area Chamber of Commerce.
The $585,000 program from Advance has the backing of 10 area banks and is the culmination of more than two years of work. The program provides loans from $5,000 to $100,000 to start-up and small businesses.
"We hope this will (fill) an existing gap in the area … that helps (applicants) create new businesses, improve their businesses or expand their businesses that may not be eligible for commercial financing due to their small size or lack of a track record," Fred Monique, vice president of economic development with Advance, said during a news conference at the Business Assistance Center in Green Bay.
Program administrators said money can be used for purchases like machinery or equipment — including computers — or for payroll and working capital as an operation looks to establish itself or expand.
"Our focus is really for start-up companies and emerging businesses — businesses that need just a little bit more money to grow or to get started," said Marianne Dickson, the loan program director. "I had been in banking over 20 years, but banks can only do so much, and it's very difficult to lend small dollar amounts and very difficult to lend to entrepreneurs and start-ups.
"That's where we come in and want to help," she said.
Applicants must provide a business plan and at least 10 percent of project costs and must have a minimum of two months of working capital in reserve.
A nonrefundable application fee will be based on the size of the loan. There is a seven-year maximum on payback on larger loans, but length of each loan will vary.
Review and approval of the loan is expected to take 30 to 60 days.
Applications for the loan will be reviewed and selected by a loan committee from Advance. Part of the committee's selection process includes meeting with the applicant to discuss the proposal, Dickson said. "We have to make sure your business is viable, but we'll place a lot of emphasis on you as an individual," she said.
Ben Michiels, president of Original Experiences, said he plans to apply for the loan to expand his 2-year-old catering operation to include a mobile, semi-gourmet, vending service called Eggs N Bacon Wagon.
"When people are just looking at the bottom line, you lose that personal flavor," he said. Jill Feiler, president of Denmark State Bank — one of the 10 participating banks — said this program is important to the community with the current regulatory environment within banking.
"What banks have typically done with the small-business owner is gone to the personal side and done home equity loans and that sort of thing," she said after the press conference. "The regulatory environment has made that more difficult for the small business owner and made it more difficult for us to be able to lend — which makes this so important."
Feiler said it was not a difficult decision to join the program. The Brown County MicroLoan Program is a revolving loan. Monique said Advance is seeking Small Business Administration certification to secure additional future funding for the program. Banks in the program include Associated Bank, The Business Bank, BankFirst National, Baylake Bank, Denmark State Bank, Heartland Business Bank, Johnson Bank, M&I Bank, Nicolet National bank and Wells Fargo.
The $585,000 program from Advance has the backing of 10 area banks and is the culmination of more than two years of work. The program provides loans from $5,000 to $100,000 to start-up and small businesses.
"We hope this will (fill) an existing gap in the area … that helps (applicants) create new businesses, improve their businesses or expand their businesses that may not be eligible for commercial financing due to their small size or lack of a track record," Fred Monique, vice president of economic development with Advance, said during a news conference at the Business Assistance Center in Green Bay.
Program administrators said money can be used for purchases like machinery or equipment — including computers — or for payroll and working capital as an operation looks to establish itself or expand.
"Our focus is really for start-up companies and emerging businesses — businesses that need just a little bit more money to grow or to get started," said Marianne Dickson, the loan program director. "I had been in banking over 20 years, but banks can only do so much, and it's very difficult to lend small dollar amounts and very difficult to lend to entrepreneurs and start-ups.
"That's where we come in and want to help," she said.
Applicants must provide a business plan and at least 10 percent of project costs and must have a minimum of two months of working capital in reserve.
A nonrefundable application fee will be based on the size of the loan. There is a seven-year maximum on payback on larger loans, but length of each loan will vary.
Review and approval of the loan is expected to take 30 to 60 days.
Applications for the loan will be reviewed and selected by a loan committee from Advance. Part of the committee's selection process includes meeting with the applicant to discuss the proposal, Dickson said. "We have to make sure your business is viable, but we'll place a lot of emphasis on you as an individual," she said.
Ben Michiels, president of Original Experiences, said he plans to apply for the loan to expand his 2-year-old catering operation to include a mobile, semi-gourmet, vending service called Eggs N Bacon Wagon.
"When people are just looking at the bottom line, you lose that personal flavor," he said. Jill Feiler, president of Denmark State Bank — one of the 10 participating banks — said this program is important to the community with the current regulatory environment within banking.
"What banks have typically done with the small-business owner is gone to the personal side and done home equity loans and that sort of thing," she said after the press conference. "The regulatory environment has made that more difficult for the small business owner and made it more difficult for us to be able to lend — which makes this so important."
Feiler said it was not a difficult decision to join the program. The Brown County MicroLoan Program is a revolving loan. Monique said Advance is seeking Small Business Administration certification to secure additional future funding for the program. Banks in the program include Associated Bank, The Business Bank, BankFirst National, Baylake Bank, Denmark State Bank, Heartland Business Bank, Johnson Bank, M&I Bank, Nicolet National bank and Wells Fargo.
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