Disaster Recovery Microloan program

The Disaster Recovery Microloan (DRM) program provides short-term assistance to businesses affected by disaster events, either natural or man-made, in the Bay-Lake Region. The Wisconsin Economic Development Corporation (WEDC) provides DRM funding to Bay-Lake RPC to distribute and administer microloans to eligible businesses.

Within 30 days following a natural or man-made disaster event, which may or may not include a corresponding State of Emergency or Disaster Declaration, Bay-Lake RPC will request an allocation of funding from WEDC to create and administer microloans in the region or area impacted by the disaster. When a disaster occurs, it is important that Bay-Lake RPC is aware of the disaster and all those businesses impacted.

Eligible Microloan Recipients

Disaster Recovery Microloan funds are available to businesses that meet all of the following criteria:

• Must be located in or directly adjacent to the Bay-Lake region (Counties of Brown, Door, Florence, Kewaunee, Manitowoc, Marinette, Oconto, Sheboygan, and the Oneida Nation).
  Note: in a community that is split across two regions, the side with the most damage would determine the lead region for the disaster recovery microloan. Communities split across multiple regions include: the City of Kiel (Calumet/Manitowoc Counties), Village of Pulaski (Brown/Oconto/Shawano Counties), and Village of Wrightstown (Brown/Outagamie Counties)
• Must have suffered measurable physical or economic losses because of the disaster event.
• Must attest to intent to resume business operations in the community as quickly as possible.
• Business and borrower(s) must be in compliance with, and current under, the terms and conditions of any loan, loan guarantee, lease, or other financing arrangement with any other creditor.
• Must be registered with the Department of Financial Institutions, unless operating as Sole Proprietorship.
• Must be current on all taxes (personal and business).
• Must not be listed by the WI Department of Workforce Development as a debarred contractor.
• Must not be listed on the WI Department of Corrections sex offender registry. If listed, the business owner shall be in compliance with reintegration requirements.

The following businesses are ineligible for DRM funding:

• Payday loan and title companies
• Telemarketing other than inbound call centers
• Pawn shops
• Liquor stores
• Adult entertainment venues
• Home-based businesses
• Farms

Eligible Activities

DRM funds may be used for the following activities:

• Procurement of cleanup and restoration services
• Operating expenses such as payroll (taxes, fines and fees are not eligible)
• Rent/mortgage for temporary space
• Repair and reconstruction (eligible use could include architecture and engineering costs, equipment/furniture/fixtures)

Loan Terms and Conditions

Bay-Lake RPC will provide microloans to affected businesses under the following terms and conditions:

• Loan Amount: $1,500 – $20,000
• Interest Rate: 0.00% fixed interest rate
• Loan Terms: 24 months (2 years) but may be extended to a maximum of 60 months (5 years) based on business cash flow analysis; with no early repayment penalty. Additionally, businesses located within member counties or communities may be eligible for partial loan forgiveness.
• Payment Deferral: Six months; loan payments to be made over the remaining 18 months following the deferral period
• Collateral: Collateral is required and will take the form of a security interest in a business asset(s)
• Guarantees: Unlimited, unconditional personal guarantees are required from any person with 20% or greater ownership interest in the business

To apply for DRM program funding, please contact:
Sydney Swan, Economic Development Planner
Phone: (920) 448-2820, Ext. 108
Email: sswan@baylakerpc.org