Technology Development Loan (TDL) Program

The Technology Development Loan (TDL) program was established to assist Wisconsin businesses that have developed technological innovations that have the potential to provide significant economic benefit to the state. This program is designed to help the business commercialize the new technology.

Eligible Applicants

Any Wisconsin business or consortium can apply for TDL funds. A consortium is an association between a Wisconsin business and a Wisconsin higher educational institution.

Eligible Activities

• Acquisition of land, buildings, and equipment
• Working capital
• New construction

Note: Refinancing is not eligible

Funding Availability

TDL provides gap financing.  That is, the program may fund a portion, but not all, of eligible project costs. Other funding sources must also participate in the project budget.  The actual amount of Commerce participation dependent upon factors such as:

• Commercial potential
• Economic impact
• Business viability
• Fund availability
• Collateral position available
• Amount of private funds leveraged

Finance Terms and Conditions

Interest Rate

The Department of Commerce will provide a below-market, fixed rate for the life of the loan.

Collateral

The Department of Commerce will seek the best collateral position possible to ensure that TDL loans are adequately secured.

Repayment

• Monthly payments of the principal and interest are required.
• Personal guarantees are required of individuals who are 20% or more company owners.

The Application Process

The TDL application process involves four steps:

1. Interested applicants must first talk with the local Area Development Manager. The ADM will discuss the project with the applicant to gather preliminary project information. In addition, the ADM may identify other programs that could potentially assist the applicant.
2. The applicant will submit a Prospect Data Sheet that details project information to the Department for review by a Finance Specialist.
3. The Finance Specialist will underwrite the project and make a funding recommendation to the Secretary's Office. The Secretary's Office will:

1. Deny the proposal, in which case the applicant will receive a letter outlining the reasons for denial,

2. OR

3. Make a positive funding recommendation, in which case the applicant will receive a preliminary commitment letter detailing the terms and conditions of the Department's proposed participation.

1. If a positive recommendation is made, the final step is for the business to submit a TDL application which will be presented to the Wisconsin Development Finance (WDF) Board.

Business Information

Interested applicants should have the following information available when they meet with the local ADM:

• Background information on the company.
• A description of the project.
• Information on employment levels, wages and benefits. Both existing and projected (3 yrs.).
• A project timeline.
• Balance sheet, profit and loss, and cash flow statements for the last three fiscal years, and the most recent interim statement.
• Three years of financial projections with notes covering all significant assumptions.

1. For the first year, provide monthly balance sheets, profit and loss, and cash flow statements.
   
   
2. For the second and third years, provide fiscal year-end balance sheets, profit and loss, and cash flow statements.

Personal Financial Statements for principals with ownership of 20% or greater. Statements should be signed and include Social Security numbers, phone numbers and home addresses.

For more information, contact the Area Development Manager in your region.