Media Contact:
Brian Doudna, Executive Director Eau Claire Area Economic Development Corporation
brian.doudna@eauclaire-wi.com Office: 715.834.0070
January 9, 2012 (Eau Claire, WI) – Today the Eau Claire Area Economic Development Corporation (EDC) in partnership with area financial institutions, Xcel Energy and the Chippewa Valley Innovation Center announced a $1.2 million Near Equity Fund available to finance local companies seeking an alternative to pure equity financing.
The purpose of this fund is to assist companies that are scaling from a start-up to an established organization. During this emerging growth stage, revenues are often not sufficient to support cash flow needs. This fund is designed to provide companies with liquidity needed to transition through this difficult stage and become strong, local businesses, with the goal of creating economic prosperity for Chippewa Valley residents.
Eight local organizations have each made $150,000 available to this fund:
* Eau Claire Area EDC Loan Fund
* Royal Credit Union
* Charter Bank
* Xcel Energy
* Chippewa Valley Innovation Center Loan Fund
* Northwestern Bank
* United Bank
* Citizens Community Federal
The fund is modeled after the Madison Development Corporation’s Venture Debt Fund, which has a proven track record in Dane County, providing over $5 million for emerging growth companies.
“We are pleased to collaborate with a broad group of partners to provide a much- needed tool to support new company formations in the community,” said James Hanke, Economic Development Manager at Xcel Energy. “Emerging companies should be considered an important part of growing and diversifying our local economy and the fund is specifically tailored to assist those entrepreneurial companies.”
“As one of the group of financial institutions that chose to participate in this program to grow the regional economy, we are excited about the opportunity this fund provides to support new and growing, innovative companies,” stated Trevor Bohland, Chair of the Near Equity Loan Committee and Senior Vice President of United Bank in Eau Claire. “The Near Equity Fund allows us to participate in providing financing to these companies, which may not have access to traditional small business loans in today’s current banking environment.”
To be eligible to apply for a loan from this fund, businesses must operate within the City of Eau Claire or Eau Claire County. Loans from this fund can range from $100,000 to $250,000 with an interest rate ranging from prime +2% to prime +4% based on the situation and needs of the borrowing company.
For more information about the Near Equity Fund or to apply for a loan, please contact Brian Doudna, Executive Director of the Eau Claire Area EDC at 715-834-0070.
ABOUT THE EAU CLAIRE AREA EDC:
The Eau Claire Area EDC, a nonprofit organization, is a public/private sector partnership that works to advance economic prosperity through business and job growth. The EDC does this by working with individuals, businesses, and communities seeking to create, retain, and expand business in the Eau Claire area. For more information contact the EDC at 715-834-0070 or visit http://www.eauclaire-wi.com.
