GREEN BAY, WI (WTAQ-WLUK) – As some municipalities already have done, Green Bay is rolling out a loan program to help struggling businesses.
Green Bay alderman Brian Johnson tells FOX 11 they want to help small businesses falling through the cracks of existing government relief programs.
“A lot of the sole proprietorships in particular aren’t as effectively served at some of the state and federal programs.”
The city is taking $100,000 of U.S. Housing and Urban Development money to offer $5,000 loans to small businesses with 20 or fewer employees and $10,000 loans for companies with 20 to 100 employees. The loans are interest free for a year and 4 percent after that. They’d have to be paid back in 3 or 4 years and businesses would need to meet federal requirements.
“These are people that are often times living paycheck to paycheck and so when the government kind of steps in and cuts off that opportunity for them to generate revenue, that is really the type of industry that is hit the hardest,” said Johnson.
At the beginning of the month, about 80 percent of businesses across the state who responded to a UW-Oshkosh survey said grants and no or low interest loans would provide the most help to them right now.
About 30 percent said they fear they’ll have to shutdown permanently if current conditions continue for one to three more months.
In a virtual Redevelopment Authority meeting on Tuesday, a vote was approved to have City of Green Bay staff look into using Wisconsin Trust Fund money to help businesses get on track quicker after the economy starts to reopen. The city would be able to make its own requirements with the loans.
The Wisconsin Trust Fund is essentially a money source for municipalities to borrow from. Right now, Green Bay uses it to buy and fix up homes. Using it to help businesses would be new.
“I think this could get us into situations that are very risky in repayment of funds and we’re going to have to think about that as we create this funding,” said Matt Schueller, a member of the Redevelopment Authority.
“I think what we’re doing right now, the loans are quite small that we’re hedging our bets and we’re not putting a lot of money into any one business,” said Kevin Vonck, the city’s Economic Development Director.
Before money can be borrowed from the state trust fund, the city council must sign off on it in consecutive meetings.
The city is in the process of publishing an application process on its website for businesses interested in the $5,000 and $10,000 loans.
