LOAN PROGRAM
Gap Financing
Bridge funding that works alongside your bank to complete your project financing
Loan Range: $75,000 - $1 Million+
OVERVIEW
Gap Financing Program Overview
Gap Financing fills the funding gaps when your bank can provide most—but not all—of what you need. CWED participates alongside your primary lender, covering up to 40% of total project costs.
This program is ideal for businesses with strong banking relationships who need additional capital to make their expansion, equipment purchase, or real estate acquisition possible.
Why It Works
CWED provides accessible financing to help businesses start, expand, and innovate. By filling lending gaps, we empower entrepreneurs to create jobs and strengthen the local economy.
Key Differentiators
Must be in partnership with a primary bank
CWED can fund up to 40% of project costs
Available for projects $75,000 - $1M+ (over $1M at board discretion)
DETAILS
Gap Financing Loan Details
Loan Criteria
Requirements
Details
Loan Amount
$75,000 - $1 Million+
Loans over $1 million considered at board discretion
Interest Rate
3-5%
Competitive, below-market rates
Bank Participation
Required
Must be in partnership with primary lender
CWED's Share
Up to 40%
Your investment in the project
Collateral
Required
Including personal assets, with personal guarantees
Loan Terms
- •Working Capital & Inventory
- •Machinery, Equipment, Furniture, Fixtures
- •Real Estate
- •Up to 5 years
- •5-7 years (not to exceed life of asset)
- •Up to 10 years (may be amortized up to 20 years)
PROGRAM USES
Eligible Uses for Gap Financing
Gap Financing can support a wide range of business investments that contribute to economic growth in Central Wisconsin.
ELIGIBLE ACTIVITIES:
Land, Buildings & Fixed Equipment
Acquire real estate or fixed assets (must occupy at least 51% of space)
Site Preparation & Construction
Board-approved preparation, construction, or reconstruction for non-speculative projects
Equipment Installation
Install fixed equipment (installation costs must be less than 10% of equipment cost)
Building Improvements
Clearance, demolition, removal, rehabilitation, or construction with board approval
Utility Assessments
Sewer, water, street, and other public utilities that support business expansion
Working Capital
Short-term operating expenses, including training and some relocation costs
Capital Investments
Reimbursement for certain expenditures made prior to loan approval (with board approval)
Disaster Recovery
Financial assistance for governor-declared natural disaster expenses
Pre-Approval Expenses
Major investments in business infrastructure and capacity
Special Projects
Other business investments reviewed on a case-by-case basis
ELIGIBILITY
Who Can Apply
Gap Financing is available to for-profit businesses in Central Wisconsin that meet the following criteria:
Requirements:
Operating or planning to operate in one of CWED's 10 service counties
Working with a primary bank or lending institution
Can provide 10% owner's equity
Project supports one or more CWED fund objectives (job creation, economic growth, etc.)
Able to provide collateral, including personal assets
Willing to provide personal guarantees
INELIGIBLE ACTIVITIES & BUSINESSES
What We Don't Fund
Ineligible Activities:
Refinancing or debt consolidation
Routine maintenance
Non-essential specialized equipment
Relocation within the region without extenuating circumstances
Residential construction (unless converting to business use)
Compensation for business weakness or poor credit history
Non-business expenses
Ineligible Businesses:
Gambling operations
Rent-to-own businesses
Adult entertainment or bookstores
Businesses not serving Central Wisconsin
Nightclubs and bars without food service
Real estate investment speculation
Lending institutions
HOW TO APPLY
Application Process
1. Contact CWED to discuss your project
2. Submit application and required documents
3. Application review and board consideration
4. Approval and loan closing
Let's discuss your project
Get started NowREQUIRED DOCUMENTS
What You’ll Need
Typical Documents
Business plan
Financial statements
Tax returns
Project budget
Bank commitment letter
Personal financial statement
SUCCESS STORY
From Startup to Expansion: Building a Craft Distillery in Stevens Point
"We've worked with CWED on two loans - one to start up our business and one to construct our new location. Without their help, neither project would have happened. CWED is an important partner for financing our business startup and expansion. Sharing the risk with our lead lender was essential to closing the deals"
Brian Cummins
Founder & Distiller, Great Northern Distilling
Let’s Build Stronger Communities Together
Connect with CWED to explore funding opportunities that support growth, jobs, and lasting impact across Central Wisconsin.