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Wausau committee approves McDevco microloan guidelines to expand small business lending
Summary
The Economic Development Committee unanimously approved microloan program guidelines with McDevco to provide gap financing—loans up to $25,000 at 3% interest and no prepayment penalty—to support small businesses, particularly those unable to secure bank credit.
The Economic Development Committee voted unanimously May 6 to approve microloan program guidelines developed with McDevco (MCDEVCO) to provide gap financing to small businesses in Wausau and Marathon County.
City staff said the microloan program, initially funded with block‑grant and city revolving funds, addresses financing gaps for small purchases—inventory, equipment or minor building work—that can mean the difference between staying open and closing. Kim Webber, director of McDevco, told the committee the program targets borrowers who may be turned away by banks and offers small loans at 3% interest with no prepayment penalties.
"These usually are folks that maybe a bank is referring to us... that needs a smaller pot of funds at 3% interest, no prepayment penalties, removing the barriers so that they can do what they need to do to fund their business in a practical way," Webber said. Staff said the program had already supported at least six microloans under the city umbrella and that the template will now be available countywide.
Tammy Strats told the committee the program complements other gap financing the city has done for decades and that city funds and block grant rules differ in what they permit. The committee approved the program guidelines on a motion by Alder Killian, seconded by Alder Tierney.
The guidelines set a typical microloan maximum at $25,000 and are designed for small repairs, equipment or working capital that local banks may not finance. Staff said underwriting will be handled by McDevco and partnering revolving loan fund administrators, and the city will monitor program performance.
