Interested in investing in upstart businesses in Green County?
With all of the hype about crowdfunding for businesses, have you ever thought about how you or your business might invest in local businesses? How would that equation look if your investment was matched dollar for dollar?
GCDC applied for and will receive $375,000 in matching funds from the Wisconsin Economic Development Corporation to establish a new Green County Growth Opportunity Fund. As GCDC raises money for Green County Growth Opportunity Fund, the state will match those funds dollar for dollar. This is an opportunity to double your investment in the future of Green County businesses.
What is a Green County Growth Opportunity Fund?
The Green County Growth Opportunity Fund is a revolving loan tool used for development and expansion of small businesses. It is a self-replenishing pool of money, utilizing interest and principal payments on old loans to issue new ones. The Green County Growth Opportunity Fund is gap financing tool used as a bridge between the amount the borrower can obtain in the private market and the amount needed to start or sustain a business. For example, a borrower may obtain 60 to 80 percent of project financing from other sources. The balance can be provided by the Green County Growth Opportunity Fund.
As businesses pay back their loans with interest, the fund will rebuild and constantly turn over to provide additional loans to other businesses.
GCDC had been responsible for administrating the previous Green County Revolving Loan Fund since it was established in 2004. Thirty four loans were made in that time, averaging $110,000 per loan. Due to changes at the state level, Green County (and all counties and communities with federally-funded Revolving Loan Funds) was required to end the Revolving Loan Fund program and return outstanding loan balances back to the state. Without this new Green County Growth Opportunity Fund, our county has no financial tools to assist business startups or expansions.
What Green County businesses are eligible?
The focus of the program is on high-growth startups and emerging growth companies. The full amount ($750,000) of funding in the Green County Growth Opportunity Fund must be loaned out within 18 months and may be used for businesses that have been in business five years or less. The loan amount cap per business loan is $100,000 (which can be exceeded with cause). There is no job creation requirement. The Green County Growth Opportunity Fund may not be used for multi-family housing. Funding will be used for businesses such as: advanced manufacturing, agriculture or food processing, information systems or software, medical devices, biosciences and energy.
Growing the Green County Economy
Major employers, communities and lenders in Green County have recognized the importance of investing in startups and emerging growth companies. Because of this support, GCDC anticipates support for this program to increase the availability of capital to startups and emerging growth companies to support development and attract additional private investment.
What is the impact?
In the next 18 months, $750,000 will be invested in startups and emerging growth companies in Green County. Impact will be felt immediately as our new businesses start and grow here in Green County. That impact will continue as businesses pay back their loans and more businesses can be funded.
How can we contribute?
Send your check to GCDC. Payment plans may be spread over five years, but only contributions in 2019 and 2020 will be doubled by state funding. All donations are tax deductible. All returns on investment and loan repayments will be put back into the Green County Growth Opportunity Fund. No annual stipend will be provided to GCDC or any other person or entity.
For more information, contact the GCDC office at 608-328-9452 or email gcdc@tds.net.
— Cara Carper is executive director at Green County Development Corporation. She can be reached at cara.gcdc@tds.net.
