The Neighborhood Business Revitalization Guarantee can be used to assist existing business owners or experienced developers stimulate economic development in redeveloping urban neighborhoods by:
1. Bringing or expanding existing businesses into the area, or
2. Developing or rehabilitating commercial real estate, including mixed-use properties, where a business occupies a portion of the building.
For a loan where the business (non-developer) is the borrower, the guidelines are outlined in Part I, items a through f. When applying, use the Loan Guarantee Application (Form 4).
For a loan where a developer is the borrower, the guidelines are outlined in Part II, items a through f. When applying, use the Neighborhood Business Revitalization Guarantee Application (Form 5).
Item g, Financing Terms and Conditions, applies to all borrowers.
The business must fulfill the following:
 | An existing business must have annual revenues of under $5 million; |
| The business must be located in Wisconsin; |
| The business owner(s) must be actively engaged in the daily on-site management of the business; and |
| The business must create or retain jobs. |
Job creation and retention will be considered when deciding if a guarantee request is approved. WHEDA does not have a formula that requires a specific number of jobs be created for dollars borrowed; however, projects that result in a high ratio of jobs created to dollars borrowed will be looked upon more favorably than projects with a low ratio.
Once the requirements listed above are met, the following types of projects are eligible:
| Bringing into, or expanding existing businesses in, urban neighborhoods; the business must be in existence at least 12 months |
| Mixed-use properties where the business occupies at least 25% of the total square footage of the building |
| Expanding into a new line of business that is complementary to the existing business |
A complementary business exists when one business directly enhances the revenue of another (Example: hotel adding a restaurant)
Ineligible businesses include:
| Startup businesses |
| Community based residential facilities |
| Adult entertainment businesses |
| Businesses where more than 1/3 of gross receipts are from gambling |
| Businesses where more than 3/4 of gross receipts are from alcohol sales |
| Businesses where the principals owe past due child support |
| Businesses involved in real estate investment or speculation |
| Businesses involved in the direct production of agricultural commodities (i.e., farming) |
Loan proceeds may be used for:
| Land |
| Buildings |
| Equipment |
| Inventory |
| Working Capital, permanent or revolving |
| WHEDA closing fee |
| Soft costs not to exceed 5% of the eligible project costs (i.e., architectural fees, appraisals) |
| Refinancing existing debt that does not exceed 75% of the WHEDA guaranteed loan |
| Intangible assets |
| Loan origination fees (except WHEDA closing fee) |
| Any project costs incurred before a complete application or Intent Form (Form 2) is received and acknowledged by WHEDA |
| Transactions where a Lender: |
1. Has taken title to a business, or the fixed assets of a business, as a result of bankruptcy or foreclosure proceeding; or
2. Is at risk of taking title to a business, or the fixed assets of a business, as a result of bankruptcy or foreclosure proceeding
It is the Lender's responsibility to make the following assurances when evaluating an application for participation in the Neighborhood Business Revitalization Guarantee.
| The Borrower is unable to obtain conventional financing at terms similar to those provided through the Neighborhood Business Revitalization Guarantee. |
| The Lender believes that, if the Borrower received a Neighborhood Business Revitalization Guarantee, the Borrower's assets, projected cash flow and managerial ability are sufficient to preclude voluntary or involuntary liquidation before the end of the loan term. |
