The Borrower must first apply to the Lender. Once the Lender agrees to extend a loan to the Borrower, the Lender and Borrower jointly complete the application.
Refer to the Guarantee Procedures chapter to determine which application(s) to complete.
Following are the instructions to be used when completing the LiDL application package. The instructions are in the order of the LiDL Application Checklist.
Use the checklist to assist in compiling a complete application.
Review the checklist prior to submitting an application to ensure completeness. If a particular item is not applicable, please indicate "N/A" next to that item. Failure to submit a complete application package will result in a delay in its review.
Enclose a $100 non-refundable application fee.
The Wisconsin Business Loan Application combines the common borrower and business information needed by WHEDA and the Department of Commerce.
Provide basic information about the business and the key contact person at the business. The contact person will be working with the Lender and may be contacted by WHEDA. This person should be available during working hours.
Type of Business: State whether the business is a retailer, manufacturer, wholesaler, etc. Also state the type of product or service offered. Descriptions might include manufacturer of recycled paper products, retailer of women's clothes, hotel/motel operator, etc.
List all owners in the business. The total ownership must equal 100%. Attach a separate sheet of paper, if necessary.
List key management personnel who are vital to the day-to-day operations, and their primary responsibilities in the business.
State when the business started operations or was purchased, historical sales for the last two years, and whether any intercompany transactions exist.
A significant financial interest exists when a person or entity directly or indirectly, through one or more intermediaries, has 80% voting control of another person or entity, or is in 80% common voting control with another person or entity.
State what employment gains are expected within the next two years as a result of the LiDL subsidy.
Assures the Borrower understands their responsibility to provide accurate and complete information.
Declarations: If any of questions 2-6 are answered "Yes", a detailed explanation must be submitted with the application package.
This information must be completed by the participating Lender.
Identify total project costs and the portion subsidized by LiDL.
Identify all funding sources and dollar amounts (i.e., bank conventional loan, LiDL Subsidy, owner's equity, etc.).
The following formulas are to be used when completing the LiDL application. WHEDA will use the following guidelines in determining if the Borrower(s) demonstrate a financial need for the LiDL subsidy. The Borrower does not need to meet each guideline.
The difference between a company's total assets and total liabilities. If the business is a start-up, please provide the projected net worth of the business.
Guideline: |
Demonstrates a financial need for the subsidy if less than $150,000 |
The difference between an individual's total assets and total liabilities. Provide the combined net worth if more than one principal is involved in the ownership of the business.
Guideline: |
Demonstrates a financial need for the subsidy if less than $500,000 |
The ratio of the total liabilities of the business to its net worth assuming the proposed project financing is complete. If the business is a start-up, use the projected debt and net worth of the business to calculate the ratio.
Guideline: |
Demonstrates a financial need for the subsidy if more than the RMA average, or 2.5 if the RMA is not available. |
Proposed Annual Net Operating Cash Flow¹ |
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¹Proposed Annual Net operating cash flow = Sales - Cost Of Goods Sold - Operating Expenses (exclusive of depreciation and interest expenses) | |||
²Annual principal and interest obligations = Proposed loan + existing debt obligations | |||
Guideline: |
Demonstrates a financial need for the subsidy if less than 1.5 | ||
Business and Personal Debt (including proposed debt) |
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³Include all personal income sources and projected business net income | |||
Guideline: |
Demonstrates a financial need for the subsidy if more than 30% | ||
Liquidation Value of assets securing proposed loan |
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Guideline: |
Demonstrates a financial need for the subsidy if less than 1.2 | ||
Submit the terms of the loan commitment, including the conventional interest rate without the LiDL subsidy.
Submit the following if applicable:
 | Offer to Purchase |
| Purchase Agreement |
| Bids or estimates |
Submit resumes for key management personnel and individuals with ownership interest (20% or greater) in the business. Resumes must include educational experience and previous work experience including specific dates and duties.
