Governor Scott Walker announced $10 million is available to contractors through the Wisconsin Housing and Economic Development Authority’s (WHEDA) Contractors Loan Guarantee (CLG) program. WHEDA will partner with local lenders to guarantee 50 percent or up to $750,000 on new loans, helping contractors pay expenses for working on qualified contracts.
The CLG is designed to help address one of the biggest barriers for contractors bidding on construction projects – limited access to capital. WHEDA, along with its lending partners, will make access to capital quicker and more affordably through this program. The CLG helps reduce financial risk for the lender while ensuring that Wisconsin contractors have access to funding.
Program enhancements include:
- Streamlined application – The loan approval process has been streamlined and simplified. WHEDA will be utilizing an eligibility checklist that will take approximately one week to approve.
- Expanded eligibility – The CLG will now be open to general contractors and subcontractors who meet the eligibility criteria.
- Reduced fees – The only fee will be 3% on the guaranteed amount of the loan at closing. There will no longer be an annual servicing fee.