Milwaukee Common Council Approves $1M Revolving Loan Fund for Minority Business Development

The Milwaukee Common Council in Wisconsin has approved a $1 million revolving loan fund to increase small business capacity and minority business capacity.

The Community  Development Block Grant  (CDBG) fund, approved by the Council on June 20, is meant to foster minority contractors,  commercial development and business development, according to  Alderman Russell W.  Stamper, II,  chair of the Community and Economic Development Committee. 

Alderman Stamper encourages minority contractors to apply , citing major  development in Milwaukee that is or will be occurring such as the Foxconn building, the Couture  high -rise and the new Bucks arena. 

“ With construction booming across the city, this is the perfect time to take your  business to the next level! I encourage small minority -owned businesses who want to someday  be a prime cont ractor to explore this  resource ,”  Alderman Stamper said.

Qualified recipients may apply the money toward their business operations including  payroll reimbursement, bonding and equipment purchasing.  

Other elements of the loan fund are as follows:

• Loan fund must be used only within the City of Milwaukee for small business capital  needs • An emphasis on the needs of subcontractors

• Loan is secured by “pre -approved” forecasted developer fees that will  be paid out  throughout the project.

• Line of Credit (LOC) term is not to exceed 12 months (reviewed annually)

• Interest rate of 4% to 6 %

• Loan amount ranges from $40,000 to $200,000 

The loan is administered through Legacy Redevelopment Corporation whose staff will  help provide technical assistance to entities to ensure all financial information is completed. 

 Interested parties can contact the Community Development Grants Administration  at City  Hall at 414 -286 -3647.