Entrepreneurs and startups throughout Dane County will gain access to much-needed capital to grow their businesses thanks to a partnership between the Wisconsin Economic Development Corporation (WEDC) and the Urban League of Greater Madison (ULGM).
At the Urban League’s 11th annual Unity Picnic on July 26, WEDC secretary and CEO Missy Hughes and ULGM Pesident and CEO Dr. Ruben L. Anthony, Jr. announced that WEDC is providing the Urban League with a $250,000 Small Business Development Grant to support three initiatives to assist innovative new businesses in traditionally underserved communities.
“The Urban League is excited that WEDC is making this investment in our community,” Anthony said. “This builds on prior investments, including a $400,000 WEDC grant that helped us leverage over $700,000 in additional private funding and provide over $1.1 million in loans and grants to 29 small businesses, and more recently, a $100,000 technical assistance grant last fall that has already allowed us to provide training more than 30 small businesses.
“This new grant will help us support businesses in a wide variety of ways, ranging from $1,000 mini-grants that might help a business obtain a vending license or buy some cooking supplies to larger loan guarantees that can help a business leverage private funding while also building new banking relationships and credit.”
The ULGM will use three strategies to help small businesses throughout Dane County, according to a press release from the non-profit, that may face barriers to accessing traditional sources of capital:
- Microgrants of $1,500 to $2,500 for startup costs such as filing or legal fees, business classes, supplies, marketing materials, totaling $75,000, with half coming from the SBDG and half from ULGM.
- Kiva Loan Matching Funds totaling $75,000, with half coming from the SBDG and half from ULGM, for small businesses that have successfully launched a Kiva crowdfunding campaign.
- Loan Guarantees that are jointly underwritten through a list of strategic lending partners, including Summit Credit Union, Park Bank, Associated Bank, and WWBIC.
“Entrepreneurs and startups help drive our state’s economy forward, keep our communities thriving, and create jobs and opportunities,” Secretary Hughes said in a statement.. “Access to capital is what fuels their growth and enables them to scale up and build momentum.”
