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City staff to propose disadvantaged‑business program using leftover COVID funds, with TIF loans as likely tool
Summary
Greater Oshkosh EDC reported on COVID‑19 loan activity; staff outlined a draft plan to use unspent COVID and TIF funds to support disadvantaged entrepreneurs through loans or forgivable loans and will return to the board this summer for review.
City staff and the Greater Oshkosh Economic Development Corporation updated the board on COVID‑19 business loan activity and said they are developing a proposed disadvantaged business enterprise (DBE) program that could use unspent COVID resources and a portion of TIF funds.
Greater Oshkosh EDC told the board it has deployed a few hundred thousand dollars in COVID‑era loans to Oshkosh businesses and does not expect to reach the maximum transfer amounts the council previously authorized. Staff said they are exploring a DBE program aimed at startups and disadvantaged entrepreneurs and plan to present details to the Joint Review Board and other city boards later this summer.
Staff described two potential funding approaches: city TIF funds would likely be used as loans (so funds return to the city when repaid), while some state sources — for example, WEDC Capital Catalyst funds — and CDBG CARES Act dollars might be structured as forgivable loans or grants to act like a grant in practice. Staff emphasized they want to pair financial assistance with technical resources — for example, the Small Business Development Center, technical colleges and other local programs — rather than only distributing cash.
City staff noted an elevated risk profile for early‑stage startups: the city’s regular revolving loan fund (RLF) normally requires businesses to have two years of operation, a requirement relaxed to one year for COVID‑era loans. Staff said truly early startups (under one year) remain a challenge and the proposed DBE program will require careful targeting and underwriting to limit defaults while meeting equity objectives.
Staff said they expect to have a clearer picture of available loan balances within a few months and will return to the board to request support before taking any formal resolution to council or the economic development board.
The board then moved on and later adjourned.
