LRC provides creative financing solutions to small businesses and nonprofits in Milwaukee’s underserved markets. Our loans may be made in partnership with bank, credit unions and other financial institutions. Because of our flexibility and mission, LRC often assumes more risk, either by making a loan that could not be made by a conventional lender or by taking a subordinate position to conventional financing.

LRC provides financing that:

  • Fosters community development in Milwaukee
  • Enhances the ability of the borrower to eventually attract “market” rate financing
  • Is based on a clear understanding of the inherent risks of the product and market

Nonprofit Loans

Nonprofit Loans

Eligible Borrowers: Any City of Milwaukee nonprofit 501(c)(3) organization, faith-based organization, cooperative, tribal entity, housing authority or community development organization that provides services to low- to moderate-income populations.

Borrower must:

  • Have a primary mission of promoting community development or facilitating positive social impact among low-income people or communities
  • Show that the use of the loan is consistent with LRC’s mission
  • Demonstrate the ability to use LRC’s capital productively and repay LRC
  • Have inadequate access to capital through traditional sources

Borrower’s target population served:

  • Low-to moderate-income individuals
  • Minorities or female-headed entities
  • People with disabilities or the homeless
  • Senior citizens

Please note that LRC does not make grants. All loans must be repaid with interest.

Download a nonprofit loan application.

Download a personal financial statement.

Your loan application also requires these documents:

  • Debt schedule
  • IRS determination letter stating 501(c)(3) status

For-Profit Loans

For-Profit Loans

Eligible Borrowers: Any City of Milwaukee for-profit business or individual.

Borrower must:

  • Have a primary mission of promoting community development or facilitating positive social impact among low-income people or communities
  • Show that the use of the loan is consistent with LRC’s mission
  • Demonstrate the ability to use LRC’s capital productively and repay LRC
  • Have inadequate access to capital through traditional sources

Borrower’s target population served:

  • Low-to moderate-income individuals
  • Minorities or female-headed entities
  • People with disabilities or the homeless
  • Senior citizen

Please note that LRC does not make grants. All loans must be repaid, with interest.

Download a for-profit loan application.

Download a personal financial statement.

Your loan application also requires these documents:

  • Debt schedule
  • Article of incorporation and bylaws for corporate entities
  • Articles of organization and operating agreement
  • Borrowing resolution

Types of Financing

LRC offers a variety of financing products to help qualifying small businesses and non-profits succeed.

  • Real Estate Loans
  • Small Business Loans
  • Predevelopment Loans
  • Emerging Business Loans

Real Estate Loans

Real estate financing helps support the development of commercial residential and mixed-use projects. LRC evaluates loans to experienced developers of residential real estate and neighborhood retail centers.

Transaction Range: $5,000 to $250,000

Intended Use:

  • Affordable housing
  • Housing redevelopment
  • Nonprofit facilities
  • GAP financing
  • Construction of apartments, lofts/condos and single family home developments
  • Financing for commercial residential rental properties and retail centers
  • Purchase of real property intended for immediate development
  • Commercial mortgage real estate loans (LTV up to 90%)

Financing Types:

  • Construction loans
  • Term loans

Terms:

  • 1-5 years
  • Amortization up to 25 years

Collateral: Required

Fees: 1.5% origination along with other standard closing cost such as filing cost, title insurance, and legal fees

General Loan Criteria:

  • The borrower (developer) must provide financial projections for the project, which demonstrate its viability, along with detailed budgets and demonstrated repayment capacity.
  • The developer(s) must provide three years of financial statements and sufficient information to evaluate cash flow and debt service capacity.
  • Real estate loans require an equity contribution by the borrower/developer.

Small Business Loans

Financing for business and equipment loans help grow commercial and industrial businesses in the City of Milwaukee.

Transaction Range: $5,000 to $250,000

Intended Use:

  • Business expansion
  • Capital improvements
  • Leasehold improvements
  • Purchase of equipment
  • Purchase of real property
  • Working capital line of credit
  • Restructuring of existing debt if it can be proven that the refinance will result in relevant savings to the applicant/project

Financing Types:

  • Term loans
  • Construction loans
  • Commercial mortgage real estate loans (LTV up to 90%)

Terms:

  • 1-5 year terms
  • Amortization up to 25 years on Real Estate
  • Amortization up to 5-7 years on equipment

Collateral: Required

Fees: 1.5% origination along with other standard closing cost such as filing cost, title insurance, and legal fees

General Loan Criteria

  • A business plan, which demonstrates that the future financial results of the company will service all debt (senior, junior, capital).

The business must have experienced, skilled management with three years of successful operating experience

Predevelopment Loans

Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s ability to find traditional financing.

Predevelopment loans help commercial, residential and mixed-use development projects in targeted areas of Milwaukee.

Transaction Range: $5,000 to $250,000

Projects Considered:

  • Housing development projects including multi-family and mixed-use developments
  • Commercial projects that have potential for significant positive impact on the community

Intended Use:

  • Land acquisition
  • Environmental reports
  • Legal work
  • Tax credit consultants and fees
  • Site planning and design
  • Appraisals
  • Survey work
  • Construction required to preserve the structural integrity of a building

Terms: 1 year

Collateral: Required

Fees: 1.5% origination along with other standard closing cost legal fees

General Loan Criteria:

  • Description of the project, including location, whether it is new construction or rehabilitation, year built, total square footage, number and square footage of housing units created, project ownership, and key project members

Detailed project budget that outlines all sources and uses and loan amount requested, including amount and source of owners’ equity investment, detailed itemization of professional fees and other expenses, total construction hard costs, total construction soft costs, etc.

Emerging Business Loans

LRC considers loans to emerging and start-up service, product, and device/technology businesses that are led by management teams that have relevant experience and have successfully completed a training program through a qualified regional business incubator.

Transaction Range: $5,000 to $50,000

Intended Purpose: Loans are considered to assist entrepreneurs in the start-up or scale-up of their businesses for the purpose of:

  • Equipment
  • Inventory
  • Limited tenant improvements

Financing Type: Loans are meant to position the company for growth and to meet the criteria necessary to qualify for the next level of financing.

  • Senior term Loans
  • Subordinated term loans (balloon)
  • Working capital lines of credit

Terms:

  • 1-5 years
  • Maximum 7 year amortization
  • SBA Community Advantage Guaranty

Collateral: Required

Fees: 1.5% origination along with other standard closing cost and legal fees.

General Loan Criteria

  • Borrower(s) must provide a written business plan.
  • Requested information includes financial projections for the business being financed which demonstrates the viability of the business with detailed budgets and demonstrated repayment capacity. Plans must also include detailed marketing, financial and operations plans.
  • Borrower(s) must have a personal investment in the project (adequacy to be determined by the Loan Committee).

Completion of predevelopment/start-up work and project timeline (milestones).

Kiva

LRC is pleased to serve as a trustee for Kiva, a program recently expanded to Milwaukee, that helps small business owners get the financing they need to start or expand businesses and stimulate job growth. Kiva allows underserved, financially excluded entrepreneurs to crowd fund, 0% interest loans from Kiva’s global lending community. In this unprecedented model, borrowers’ creditworthiness is measured by their social capital and trust network, not their credit history, cash flow or collateral.

As a trustee for Kiva Milwaukee, LRC works with you to evaluate your business idea(s), offer guidance and provide technical assistance as needed. If appropriate, we will endorse you on the Kiva Milwaukee website to connect you with interested lenders.

Click to learn more about Kiva Milwaukee. To learn more about LRC’s role as a Kiva trustee, email us now or call 414-343-0163.

Cafe Corazon, in Milwaukee’s Riverwest neighborhood, was able to grow into a thriving destination thanks to an LRC loan.

To learn more about LRC lending solutions to finance your business, please call 414.343.0163.