Frequently Asked Questions for Lenders: Underwriting
Other Lender Questions
Eligible Businesses
Eligible Uses of Loan Proceeds
Servicing Responsibilities
Is there a maximum total project
cost? 
No, however, the maximum guarantee is the lesser of 80% of the loan or $200,000 for loans other than revolving working capital. For revolving working capital loans, the maximum guarantee is the lesser of 80% of the loan or $80,000.
What are WHEDA's underwriting
guidelines?
WHEDA reviews nine criteria when we underwrite an application. These
criteria make the underwriting process more objective and predictable
for both WHEDA and lenders.
Your borrower does not need to meet each criteria's minimum guideline
to be approved for a guarantee. If your borrower doesn't meet established
guidelines for some of the criteria, but those weaknesses can be offset
or mitigated to reduce the loan's risk, the request may still be approved.
Each situation is unique. Refer to WHEDA's Quick Reference to Underwriting
Guidelines when preparing a WHEDA Small Business Guarantee application.
Does WHEDA require personal
guarantees?
In most cases we require guarantees of anyone having an ownership interest
of 20% or greater in the business.
What financing options can we
use in combination with the WHEDA Small Business Guarantee?
We encourage you to combine as many resources as possible when completing
a financing package for your customer. Other sources that have been combined
with the WHEDA Small Business Guarantee include the U. S. Small Business
Administration (SBA), Wisconsin Department of Commerce and county or local
revolving loan fund financing. Combining sources helps reduce the risk
of each party involved.
How long does it take to get
a decision from WHEDA?
You will receive a decision within 3 - 6 business days from our receipt
of a complete application package.
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