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Reporter Contacts
(608) 267-4417

Central Building Location:
201 W. Washington Ave.
Madison, WI 53703
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Mailing Address:
P.O. Box 7970
Madison, WI 53707-7970

Office of Governor
Scott Walker
Link to Governor Walkers's web site
 
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IMPORTANT: As of July 1st, 2011, functions once performed by the Wisconsin Department of Commerce have been moved to other state agencies and the Wisconsin Economic Development Corporation. The former Commerce web site will continue to exist for the next several months as resources are moved to new web site locations. We will make every attempt possible to direct our users to the new locations as web resources are moved.

Technology Venture Fund Loans

The Wisconsin Department of Commerce's Technology Venture Fund Loan program provides low-interest loans to assist small Wisconsin high-technology businesses in searching for angel or other seed capital investment.

Underwriting Criteria

Commerce anticipates that demand for these funds will exceed the availability.  Therefore, a competitive application process using the following underwriting criteria will determine the actual level of Commerce's participation, if any.  Commerce will consider all of the following items, in addition to any other information the Department considers relevant:

  1. The amount of economic impact the applicant, if successful, will have in Wisconsin.

  2. The quality of any busineses assisting the applicant.

  3. The level of need demonstrated by the applicant.

  4. The applicant's past record of obtaining early stage financing, including federal funds.

  5. The viability of the applicant's business.

  6. The likelihood that the applicant will successfully commercialize technology.

  7. The applicant's management plan and management team.

  8. If the application relates to a product, that the product will be manufactured substantially in Wisconsin.

  9. If the application relates to a service, that the principal place of business from which the service will be sold will be located in Wisconsin.

(Note:  An outside, peer review panel may also be used to evaluate the scientific and technical merit of the project.)

Application Materials

The Department of Commerce is developing online application materials for the Technology Venture Fund Loan program.  These forms should be available on this website in the near future.  In the meantime, applications may be obtained by contacting Aaron Hagar, 608/267-0769.

What are the criteria and conditions for these loans?

  • Eligible applicants must have fewer than 100 full-time equivalent employees. 

  • Eligible businesses may receive funding up to 50% (maximum of $250,000) of the eligible project costs.  Applicants must provide a cash match of at least 50% of eligible project costs.

  • Interest Rate = 4% fixed for the life of the loan

  • Terms:  Working capital - 5 to 7 years;  Equipment - 5 to 10 years

  • Collateral:  Commerce will seek the best collateral position possible.  Personal guarantees are required.

  • Repayment:  Monthly payments of the principal and interest.

  • Commerce shares in both the risks and benefits associated with the project.  Applicants must repay loans when the project is successful.  If the project is not viable, the loan may be forgiven.

  • Eligible project costs are all reasonable costs related to enhancing the applicant's ability to obtain early-stage financing from third parties.

  • Expenses associated with preparation of the Commerce application and expenses incurred prior to the date the application is submitted to Commerce are not considered eligible project costs . Commerce funds cannot be used for overhead, administration and indirect costs.  These costs may be eligible to be funded from the applicant's 50% match requirement.

For more information about Technology Venture Fund Loans, contact:

Aaron Hagar
 Technology Development Manager
608/267-0769
Aaron.Hagar@Wisconsin.gov