GAP Financing
GAP Financing Available throughout Marathon County
GAP financing is lending up to 20% of a total project. MCDEVCO collaborates with area financial institutions, municipalities, and other agencies to complete loan projects.
Why is GAP Financing Important?
Small businesses are the backbone of the U.S. economy. These companies account for more than 99% of all U.S. firms and employ over half of all workers.* Small businesses are the main sources of new job creation for Americans. Since 1995, small businesses have created two out of every three net new jobs for the U.S. economy.**
For every one dollar in lending to small businesses, sales of small business borrowers increased between $1.05 and $2.84 (with an average of $2.31). That one dollar in lending created between $2.01 and $5.59 (with an average of $3.79) in gross output in the local communities of the small business borrowers.** However, access to capital to start new businesses, purchase inventory, cover operational costs, or capital to expand is one of the top challenges for small businesses. GAP financing fills that need between what a small business owner can borrow, their down payment, and the total project cost.
GAP financing builds strong communities for Marathon County. Economic development through GAP financing attracts new businesses and allows small businesses to grow.
* U.S. Bureau of Labor Statistics 2017.
** White House National Economic Council – May 2012.
*** The Economic Benefits of Online Lending to Small Businesses and The U.S. Economy report May 2018.
MCDEVCO is the loan administrator for:
City of Wausau – Community Development Block Grant (CDBG) Fund
Marathon County Revolving Loan Fund
Micro Loan Fund
Minority Loan Fund
Private Donor Loan Funds
Private Onsite Wastewater Treatment Systems (POWTS) Administration of Loans for Marathon County
Banks Line of Credit Participation and Administrative Services Agreement
Abby Bank
IncredibleBank
Intercity State Bank
Peoples State Bank
MCDEVCO Revolving Loan Funds
Eligibility & Guidelines:
Loan funds can be used to finance acquisition of existing businesses, land, building, and equipment; working capital; or construction/expansion projects
The business shall be obligated to maintain operations within Marathon County for the term of the loan.
A minimum of 50% of the project cost must be funded by a private lender and at least 10% by personal equity.
Job creation is typically one full-time position for every $35,000.00 loaned out by MCDEVCO.
Interest rates vary and terms range between 5 and 10 years.
Personal Guaranties are required.
Not eligible for refinancing.
The Revolving Loan Funds provide GAP Financing for:
New small businesses
Existing small businesses that are expanding
Investment financing of larger projects that will support significant community/economic development
Projects that create and retain jobs (to include low-to-moderate income individuals)
Improvement of underserved and/or distressed areas
Development of Community Services
What is the application process?
Note: Eligibility and guidelines can change without notice. Please contact MCDEVCO, Inc.
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Step 1
Obtain a letter of commitment from a local financial institution for business financing.
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Step 2 - GAP Loan
Contact and meet with MCDEVCO to obtain an application or download here.
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Step 2 - Micro Loan
Contact and meet with MCDEVCO to obtain an application or download here.
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Step 3
Complete required documents from application. Contact MCDEVCO for a Personal Financial Statement (PFS) or download here.
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Step 4
After you have completed the application, contact MCDEVCO to arrange a meeting to discuss your loan application packet.