WHEDA Small Business Financing Manual - Agribusiness Guarantee Chapter

Eligible Uses of Proceeds

These expenses must be instrumental to the processing or enhancements being made.

Land, Building, Equipment and Inventory

Permanent Working Capital

Permanent working capital applies to intermediate or long-term debt used to support the anticipated growth of the business. An example of permanent working capital would include a loan used as permanent investment in inventory and receivables.

Initial Marketing Expenses

Marketing expenses include costs associated with making the product available to consumers. The proposed marketing-related expenses will be reviewed to determine their eligibility for the Agribusiness Guarantee.

Refinancing Existing Debt At Maturity

Refinancing existing debt, including credit card debt, is eligible under the following conditions:

1. The refinance must be accompanied by additional business expansion. The expansion must equal at least 1/3 of the balance of the existing debt that is being refinanced.
2. The debt being refinanced with the guaranteed loan must result in better terms to the Borrower (i.e., lower interest rate, lower monthly payments, or more favorable collateral terms, etc.).
3. The debt being refinanced with a guarantee must be current and never have been more than 30 days past due.