Financing

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.

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 (unpaid principle due at maturity)

• Working capital loans or 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:

• *3 years projections for the business – If you don’t have projection or an accountant who can create them, the following link to the Live Plan website will allow you to produce them yourself: https://www.liveplan.com (this can be done within your business plan)

• ESTABLISHED BUSINESS ONLY - 3 years completed of your most recent business tax returns w/ all schedules (do not omit any documents from tax returns otherwise the application will be considered incomplete)

• 3 years completed of your most recent personal tax returns for the business owner w/ all schedules (do not omit any documents from tax returns otherwise the application will be considered incomplete) (anyone w/ an https://www.liveplan.com/ ownership interest of 20% or more)

• Profit & Loss Statement/Balance Sheet per the request of the lender

• YTD Profit & Loss Statement/Balance Sheet per the request of the lender, if applicable.

• Business plan– we encourage you to have a business plan that would outline a “visual” on how this business will function

• Articles of incorporation, Articles of organization, operating agreement – applicable documentation for your business structure.

• Copy of business EIN# and Unique Entity Identification (UEI#) - If you don’t have a UEI# we advise you to apply for one now and it will be collected prior to closing

• Copy of a current WI Drivers License or State ID for all guarantors

• $150 Loan Application Fee (remit payment with your completed application package) – (Payment is accept through PayPal or Zelle (tcaro@lrcmke.com)

• Borrower(s) must have a personal investment in the project (adequacy to be determined by the Loan Committee).

*An Established Business – is defined as a business with three (3) or more years of completed, filed tax returns and/or audits.

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

LRC extends credit to qualifying micro-enterprises (5 or fewer employees + owner) and small businesses that do not have access to loans from traditional lending sources. We offer loans ranging from $5,000 to $50,000 for established businesses and start-up businesses.

Intended Purpose: Loans are considered to assist businesses for the purpose of:

• Equipment

• Inventory

• Working capital loans or lines of credit

Terms:

• 1-3 years

• Maximum 7-year amortization

Collateral: Required

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

General Loan Criteria:

• *3 years projections for the business – If you don’t have projection or an accountant who can create them, the following link to the Live Plan website will allow you to produce them yourself: https://www.liveplan.com (this can be done within your business plan)

• ESTABLISHED BUSINESS ONLY - 3 years completed of your most recent business tax returns w/ all schedules (do not omit any documents from tax returns otherwise the application will be considered incomplete)

• 3 years completed of your most recent personal tax returns for the business owner w/ all schedules (do not omit any documents from tax returns otherwise the application will be considered incomplete) (anyone w/ an https://www.liveplan.com/ ownership interest of 20% or more)

• Profit & Loss Statement/Balance Sheet per the request of the lender

• YTD Profit & Loss Statement/Balance Sheet per the request of the lender, if applicable.

• Business plan– we encourage you to have a business plan that would outline a “visual” on how this business will function

• Articles of incorporation, Articles of organization, operating agreement – applicable documentation for your business structure.

• Copy of business EIN# and Unique Entity Identification (UEI#) - If you don’t have a UEI# we advise you to apply for one now and it will be collected prior to closing

• Complete Church Historical Records Report, if applicable. Report will be provided by the lender.

• Copy of a current WI Drivers License or State ID for all guarantors

• $150 Loan Application Fee (remit payment with your completed application package) – (Payment is accept through PayPal or Zelle (tcaro@lrcmke.com)

• Borrower(s) must have a personal investment in the project (adequacy to be determined by the Loan Committee).

*An Established Business – is defined as a business with three (3) or more years of completed, filed tax returns and/or audits.

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 or Racine.

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:

• Environmental reports

• Legal work

• Tax credit consultants and fees

• Site planning and design

• Appraisals

• Survey work

Terms: 1 year; If pre-development surpasses the one-year term, the rate of interest will be increased.

Collateral: Required

Fees: 1.5% origination along with other standard closing cost and 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. Pre-development request must provide lender with confirmed financing sources for the project to completion.

• Projects w/ NMTC’s are reviewed and considered based on the strength of project (owners & developers), funding sources and NMTC loan program.

• *3 years projections for the business – If you don’t have projection or an accountant who can create them, the following link to the Live Plan website will allow you to produce them yourself: https://www.liveplan.com (this can be done within your business plan)

• ESTABLISHED BUSINESS ONLY - 3 years completed of your most recent business tax returns w/ all schedules (do not omit any documents from tax returns otherwise the application will be considered incomplete)

• 3 years completed of your most recent personal tax returns for the business owner w/ all schedules (do not omit any documents from tax returns otherwise the application will be considered incomplete) (anyone w/ an https://www.liveplan.com/ ownership interest of 20% or more)

• Profit & Loss Statement/Balance Sheet per the request of the lender

• YTD Profit & Loss Statement/Balance Sheet per the request of the lender, if applicable.

• Business plan– we encourage you to have a business plan that would outline a “visual” on how this business will function

• Articles of incorporation, Articles of organization, operating agreement – applicable documentation for your business structure.

• Copy of business EIN# and Unique Entity Identification (UEI#) - If you don’t have a UEI# we advise you to apply for one now and it will be collected prior to closing

• Scope of work for real estate development project with supporting details and numbers, if applicable. NOTE: Work must be completed by a State of Wisconsin licensed contractor

• Complete Church Historical Records Report, if applicable. Report will be provided by the lender.

• Copy of a current WI Drivers License or State ID for all guarantors

• $150 Loan Application Fee (remit payment with your completed application package) – (Payment is accept through PayPal or Zelle (tcaro@lrcmke.com)

• Real estate loans require an equity contribution by the borrower/developer.

*An Established Business – is defined as a business with three (3) or more years of completed, filed tax returns and/or audits.

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.

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 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.

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

Small Business Administration (SBA) Loans: Through the SBA’s Community Advantage initiative, LRC can provide qualifying local small businesses with loans up to $350,000. Contact us to learn more.

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.

LRC offers qualifying subcontractors a revolving line of credit to be used for working capital on approved development projects. Each loan is secured by pre-approved forecasted developer fees that will be paid out throughout the project.

This line of credit requires interest-only payments with principal reductions as established in the contract. With a term not to exceed 12 months, the line of credit must pay down to a zero balance and rest for a minimum of 30 days prior to its maturity.

LRC offers lines of credit up to $75,000 to $200,000 based on:

• Ability of the business to repay the debt

• Guarantor(s) strength

• Collateral pledged