A LiDL Pedal to the Metal for Synergy Metalworks
As former WHEDA Executive Director Antonio Riley once said, “Wisconsin communities have been built on the strong foundations created by our small businesses.” Small businesses are the backbone of every city, big or small, and are what make a town a community. They bring people together while also doing work that is meaningful and impactful. WHEDA understands this, which is why small businesses have always been at the core of our mission and work toward advancing economic development. To support small businesses, the Linked Deposit Loan (LiDL) Subsidy Program was created in 1985. Although it is no longer an active program, WHEDA deployed over $5 million to 700+ small businesses during its time.
Today, WHEDA offers multiple programs that help business owners access low-cost financing including the WHEDA Small Business Guarantee (WSBG), Neighborhood Business Revitalization Guarantee (NBRG), and Contractors Loan Guarantee (CLG). The programs are used to reduce the financial risk for small business lenders.
LiDL was created for the purpose of aiding minority- and/or women-owned small businesses in starting or expanding their operations. The program provides a two-year interest rate subsidy on bank loans of up to $99,000 with the condition that the project creates or retains jobs. At a board meeting in March 1985, $2 million in Authority reserves were approved to fund the program.
Synergy Metalworks of Baraboo is a great example of how the LiDL Program positively impacted small businesses throughout Wisconsin. Owners Melanie and Karl Burgi, along with their business partners Paul Martin and Landis Brozak, received a loan to form Synergy Metalworks, which in turn, generated nine jobs. The LiDL program offered an interest rate subsidy on the commercial loan provided by Community Business Bank in Sauk City, which allowed for the purchase of necessary manufacturing equipment. Synergy Metalworks serves as a manufacturer for companies with metal fabrication or portable welding/repair needs in the Greater Sauk County area.
|This financing product will help improve profitability during our first few years in business, which is ideal for any start‐up company.|
|-Melanie Burgi, Co‐owner of Synergy Metalworks|
Through the LiDL Program, Synergy Metalworks secured the funding they needed to start their business, and in turn, grew from a small start-up in 2008 to a booming business that has since built an even bigger and better facility in Baraboo. They are strong partners of the agriculture industry and seek to improve the health of dairy cows. Next time you go shopping, consider supporting small, local businesses.
Photo credit to Synergy Metalworks.