The LiDL Subsidy assists women- and/or minority-owned and controlled businesses in the start-up or expansion of their business. The subsidy is in the form of a Certificate of Deposit (CD) which WHEDA purchases from the Lender at a below market interest rate. This enables the Lender to reduce the rate on the loan to the Borrower.
LiDL can also be used in conjunction with other WHEDA financing programs, the Small Business Administration, Department of Commerce, and other city or county programs.
To be eligible for the LiDL, the business must meet these five criteria:
1. The business must have gross annual sales of $500,000 or less
An existing business, together with affiliates, subsidiaries and parent companies, must have gross annual sales of $500,000 or less.
2. The business must employ less than 25 Full Time Equivalent (FTE) positions
3. The business must create and/or retain jobs during the two-year timeframe of the LiDL subsidy
Job retention applies when existing positions are in jeopardy of being lost if the project is not undertaken.
4. The business must demonstrate a financial need for the subsidy
To determine financial need, WHEDA will review:
 | Availability of other sources of financing including the business and its principals; |
| Conventional rates and terms; |
| Historical operating results, except for new businesses; and |
| Covenants and collateral required with a conventional loan. |
5. The business must be at least 50% owned and more than 50% controlled by a woman or minority group member
A woman- or minority-owned business must be one of the following:
| A sole proprietorship legally owned by an individual who is a woman or minority group member; or |
| A corporation, partnership or joint venture where at least 50% of the ownership interests are legally held by women or minority group members, and where more than 50% of the voting interests are legally held by women or minority group members. |
A woman or minority "controlled" business is a business in which a woman or minority group member has and exercises the authority to independently control the business.
Evidence of control can be displayed by an individual's authority to do the following:
| Sign bids and contracts; |
| Make decisions in price negotiations; |
| Incur liabilities for the firm; |
| Make final staffing decisions; |
| Train employees; |
| Order inventory or supplies; |
| Demonstrate experience needed to operate the business; |
| Set policy and procedures; and |
| Make general company management decisions. |
Examples of non-control of the business:
| Bookkeeping responsibility without management responsibility |
| Working at the business and functioning in a non-management capacity |
If a non-minority male is a partner in the business, he must have no voice or role in the day-to-day management and operation of the business. This partner must have full-time employment outside of the partnership for the project to be considered. The only exception to this rule is if the business is certified as a woman- or minority-owned business by a recognized agency.
