Business Development

BUREAU OF BUSINESS FINANCE

STANDARD UNDERWRITING CRITERIA

The following criteria are used in underwriting all programs administered by the Bureau of Business Finance.

VIABILITY - The level of risk as determined by the five C's of credit:

• Character - Management capability
• Capacity - Ability to repay from cash flow
• Capital - Ability to absorb unexpected costs, e.g., personal net worth
• Collateral - assets securing Commerce funds
• Conditions - general and specific market/economic conditions

FULL-TIME JOB CREATION/RETENTION

PART-TIME JOB CREATION/RETENTION

EMPLOYEE WAGES

EMPLOYEE BENEFITS

TOTAL COMPANY INVESTMENT IN WISCONSIN

TARGETED BUSINESS (Company Demographics) - minority owned, women owned, small business, rural business, agribusiness

TARGETED HIRES (Employee Demographics) - Low and Moderate Income, minority, women, persons with disabilities, W-2 recipients, unemployed, etc.

TARGETED LOCATION (Area Demographics) - high unemployment, high % of W-2 recipients, declining population, declining property values, low median household income, significant layoffs, development zone, enterprise development zone, etc.

COMMUNITY BENEFIT - spin off jobs/businesses, positive impact upon local businesses

COMPETITION - are Commerce funds going to have a negative impact upon a competing local business.