BUSINESS FINANCING · WI

Business Financing Guide for Dane County, Wisconsin

Dane County, Wisconsin has a strong network of local lenders, nonprofit lending organizations, and community programs designed to help small business owners and solo contractors access the capital they need — including people who are new to credit or who use an ITIN instead of a Social Security Number. This guide walks you through who qualifies, what documents to gather, and which local organizations actually serve this community. Federal programs like SBA loans are a helpful backstop, but your first call should be to a local intermediary who knows the Dane County market. Take your time, compare your options, and never let anyone pressure you into a loan you don't fully understand.

§ 01 — What it is

What Is Business Financing — and How Does It Work Here?

Business financing is any arrangement that gives your business access to money it needs to start, grow, or stabilize — in exchange for repayment over time, a share of ownership, or both. In Dane County, the most common forms are: **Term loans:** You borrow a fixed amount and repay it in monthly installments over one to seven years. Good for equipment, buildout costs, or working capital. **Lines of credit:** A revolving account you draw from and repay as needed. Useful for contractors who have gaps between jobs or slow seasons. **Microloans:** Smaller loans, typically $500–$50,000, offered by nonprofit lenders (CDFIs) with more flexible underwriting than banks. Often the right starting point if you're newer to credit. **SBA-backed loans:** Loans made by private lenders and partially guaranteed by the U.S. Small Business Administration. This reduces the lender's risk so they can say yes to more borrowers. They are not handed out by the federal government directly. **Real estate investment loans:** If you buy, renovate, or hold rental property as a business, there are specific loan products for that — covered in more detail below. Dane County's economy is anchored by the University of Wisconsin–Madison, a large state government sector, and a growing technology and healthcare industry. This means local lenders understand a wide range of business types — from food trucks near the Capitol Square to construction subcontractors in the outer townships.

§ 02 — Who qualifies

Who Qualifies — and What the Local Economy Means for You

Qualifying for business financing in Dane County depends on several factors, but local lenders here tend to look at the full picture — not just a credit score. **You may qualify if you:** - Have been operating a business (even informally) for six months or more - Can show income through bank statements, tax returns, or invoices - Have an ITIN (Individual Taxpayer Identification Number) — many local CDFIs and credit unions in Dane County accept ITINs in place of a Social Security Number - Are a sole proprietor, LLC, or small corporation - Have less-than-perfect credit but a clear repayment plan **Dane County context:** Madison is one of the fastest-growing metros in the Midwest. The construction trades, landscaping, food service, and property maintenance sectors have strong demand — particularly from the university, hospital systems, and the large residential rental market (Madison has one of the highest renter populations in the state). Solo contractors and small real estate investors are well-positioned to access capital here because local lenders see consistent demand in these sectors. **Spanish-speaking entrepreneurs:** Dane County's Latino business community has grown steadily, especially on the south and east sides of Madison. Organizations like WWBIC and the Wisconsin Latino Chamber of Commerce have staff and partners who can assist in Spanish. You do not need to be a U.S. citizen to apply for most local small business loans.

§ 03 — What you need

Documents You'll Typically Need

Getting your paperwork together before you walk into a lender's office will save you significant time. Requirements vary by lender, but here is what most will ask for: **Identity and legal status:** - Government-issued photo ID (passport, consular ID, or driver's license) - ITIN letter or SSN - Business license or DBA registration from the City of Madison or Dane County Clerk's office (if applicable) **Business financials:** - Last 2 years of business tax returns (or personal returns if you're a sole proprietor) - Last 3–6 months of business bank statements - A simple profit-and-loss statement (your lender or a CDFI counselor can help you build one) - List of outstanding debts or existing loans **Business plan or use-of-funds statement:** - Many microlenders and CDFIs will want to understand what the money is for — a one-page explanation is usually enough to start **For real estate investors:** - Property address and purchase contract (if applicable) - Rent rolls or lease agreements - Estimated repair costs (if it's a renovation project) **Don't let missing documents stop you from making a first call.** Many local organizations in Dane County — including WWBIC and SCORE Madison — offer free pre-application counseling to help you get organized before you apply.

§ 04 — Where to start in Dane County

Local Lenders, CDFIs, and Organizations That Serve Dane County

These are real organizations with a physical or active presence serving Dane County small businesses and investors. Always verify current programs directly with each organization. --- **Wisconsin Women's Business Initiative Corporation (WWBIC)** 📍 Madison office serves Dane County | wwbic.com WWBIC is a leading CDFI in Wisconsin. They offer microloans and small business loans, and they specifically work with people who have non-traditional credit histories — including ITIN holders. They provide one-on-one coaching and are a trusted entry point for many first-time borrowers. Bilingual staff available. --- **Wisconsin Small Business Development Center (SBDC) — UW–Madison** 📍 975 University Ave, Madison, WI | wisconsinsbdc.org Free, confidential business advising. They help you build your loan application, review financials, and connect you with lenders. Not a lender themselves, but an excellent first stop. --- **SBA Wisconsin District Office** 📍 740 Regent St, Suite 100, Madison, WI | sba.gov/offices/district/wi The SBA's Wisconsin District Office covers Dane County. They can connect you with SBA-approved lenders (banks and credit unions that offer SBA 7(a) and SBA 504 loans). They also run the Small Business Development Center network in the state. --- **University of Wisconsin Credit Union (UW Credit Union)** 📍 Multiple branches in Madison | uwcu.org One of the largest credit unions in Wisconsin. Serves business members with checking accounts, lines of credit, and business loans. Member-owned, which means lower fees and more flexible conversations than big banks. Available to anyone who lives or works in Dane County. --- **Summit Credit Union** 📍 Headquartered in Madison | summitcreditunion.com Another strong local credit union serving Dane County with small business loans and commercial real estate products. Known for working with borrowers who have thinner credit files. --- **Tri City National Bank (formerly known as local community banking options in the Madison area)** Note: For community banking, also consider **Midwest Bank**, **Westbury Bank**, and **Peoples Independent Bancorp** branches in the Madison metro — community banks often have more flexibility than national lenders. --- **Accion Opportunity Fund** 🌐 accionopportunityfund.org | Serves Wisconsin statewide (online applications available) A national CDFI that serves Wisconsin small business owners, including ITIN holders. Offers loans from $5,000 to $250,000 with flexible credit requirements. Spanish-language support available. --- **SCORE Madison Chapter** 📍 Madison, WI | score.org/madison Volunteer mentors — many retired business owners and bankers — who can review your business plan for free and connect you with lenders. Great for contractors who want a second opinion before applying. --- **City of Madison Small Business Resources** 📍 cityofmadison.com/business The City of Madison's Office of Business Resources occasionally administers local grants, facade improvement funds, and revolving loan funds, particularly for businesses in designated neighborhoods. Worth checking for current programs.

§ 05 — What to avoid

Wisconsin State-Specific Regulatory Notes

Wisconsin has several state-level rules and programs that affect how business financing works in Dane County: **Wisconsin Economic Development Corporation (WEDC)** WEDC is the state's main economic development agency and offers loan guarantees, tax credits, and grant programs for small businesses. Their **Entrepreneur's Guide** is a useful free resource. Programs change annually, so check wedc.org for current offerings. Contractors and small manufacturers may be eligible for workforce training grants as well. **Wisconsin Community Development Block Grant (CDBG) — Business Finance** Federal CDBG dollars flow through the state and county to support business lending in lower-income areas. Dane County administers some of these funds for businesses that create jobs or serve underserved communities. Contact Dane County's Planning & Development office for current programs. **Wisconsin DFI (Department of Financial Institutions)** If you're ever unsure whether a lender is licensed to operate in Wisconsin, you can verify their registration at wdfi.org. This is a quick way to protect yourself from unlicensed lenders. **Wisconsin Usury Laws** Wisconsin does not have a strict general usury cap on commercial loans, which means some business lenders can charge high rates legally. This makes it especially important to compare Annual Percentage Rate (APR) across lenders — not just the stated interest rate. **LLC and Sole Proprietor Registration** In Wisconsin, you can register a business with the Department of Financial Institutions online for a modest fee. Having a registered business entity can strengthen your loan application and protect your personal assets. **Dane County Zoning for Real Estate Investors** If you're financing a rental property in Madison or the surrounding townships, be aware that local short-term rental ordinances and zoning rules affect property income projections. Lenders may ask about this when evaluating a rental property loan.

§ 06 — Ask a question

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