The WHEDA Small Business Guarantee is intended to assist in the acquisition and expansion of existing businesses and the development of eligible startup businesses.
The business must fulfill the following:
 | The business must employ 50 or fewer full time equivalent (FTE) positions at the time of application (an FTE is considered 2080 hours/year) |
| The business must be located in Wisconsin |
| The owner(s) must be actively engaged in the daily on-site management of the business |
| 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:
| Acquiring or expanding a business that has been in operation for at least 12 months |
| Acquiring or expanding a business that ceased operations within the last 6 months, but was operating for at least 12 months before closing |
| Mixed-use properties where the business occupies at least 25% of the total square footage of a building |
| Refinancing existing debt, including credit card debt, that is accompanied by a business expansion |
| 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 (Examples: landscaping business expanding into retail floral; hotel adding a restaurant)
| Starting a day care facility (child or adult care) |
| Starting a small business in a vacant storefront in the downtown area of a rural community |
A rural community is defined as (1) " a city, town, or village in this state with a population of 12,000 or less" or (2) " a city, town, or village in this state that is located in a county with a population density of less than 150 persons per square mile."
For startup businesses other than day care facilities, the Lender must submit the Downtown Startup Business Eligibility Form (Form 3A) and supporting documentation. Upon receipt, WHEDA will determine eligibility and may conduct a site visit if necessary.
