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Committee approves McDevCo–City microloan guidelines to expand small‑business gap financing
Summary
The Wausau committee approved microloan program guidelines with McDevCo to make smaller gap loans—up to $25,000—available at favorable terms to local small businesses and entrepreneurs throughout Marathon County.
The Economic Development Committee approved guidelines for a microloan program administered with McDevCo that aims to expand small‑business gap financing across Marathon County.
Staff described the program as a complement to existing revolving loan funds. McDevCo director Kim Webber told the committee the microloan product targets borrowers who cannot access bank financing for relatively small, business‑critical expenses—inventory, equipment or health‑department capital needs—and that loans are capped at $25,000 under program guidelines approved by the committee.
Webber said program features include a 3% interest rate, no prepayment penalty and flexible underwriting designed to bridge small shortfalls that can determine whether a business remains open. Staff said the microloan template had been piloted in the city with at least six microloans and the model has since been adapted for use across Marathon County. The program will use a mix of city funds and block grant funds, with rules varying by funding source.
A motion by Alder Killian, seconded by Alder Tierney, approved the guidelines by voice vote. Staff said McDevCo will continue to manage underwriting and loan servicing and that staff will refer appropriate applicants, including bank‑referred clients, to the microloan product.
Committee members thanked McDevCo staff and urged outreach to entrepreneurs who may need small amounts of capital to maintain or expand operations.
