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Linked Deposit Loan (LiDL) Subsidy

LiDL provides an interest rate subsidy on lender financing to women or minorities who start-up or expand a business.

Features & Benefits

  • Lower Interest Rate—improves profitability
  • Use for Start-up, Acquisition or Expansion Costs—meets financing needs
  • Use in conjunction with WSBG, SBA or conventional financing—allows you to take advantage of other financing products

Terms

  • Minimum and maximum loan amounts eligible for the subsidy are $10,000 and $99,000, respectively.
    • For a business more than three (3) years old, the maximum subsidy is $10,000 per Full Time Equivalent (FTE) job created or retained.
    • For a start-up, or acquisition or expansion of a business less than three (3) years old, the average income and unemployment rate in the county where the business is located are compared against State averages. This sets the subsidy amount at $10,000, $15,000 or $20,000 per job created or retained.
  • Maximum term of the subsidy is two (2) years.
  • Amortization and term of the loan may exceed the term of the subsidy.
  • Interest rate on the subsidized portion of the loan is Prime - 1% during the first two years of the loan.
  • WHEDA purchases a Certificate of Deposit at a rate of 2% or Prime minus 4%, whichever is higher, from the lending institution providing the financing.

Fee

  • $100 nonrefundable application fee that may be financed and included in the loan request.

How to Use LiDL

Gives you a summary of the process.

Eligibility

Business Eligibility
What types of businesses are eligible?
Use of Loan Proceeds
What are the eligible uses for the proceeds of a WHEDA subsidized loan?

Frequently Asked Questions

For Businesses

General
Eligible Businesses
Eligible Use of Loan Proceeds
Procedures

For Lenders

General
Eligible Businesses
Eligible Use of Loan Proceeds
Procedures