Village revamps rules for use of revolving loan fund

The Saukville Village Board voted recently to “de-federalize” its revolving loan fund program, which helps local businesses get started or expand.

The program provides low-interest loans to businesses in the village for working capital, equipment purchases and property acquisitions.

It originally was funded with money from the federal Dept. of Housing and Urban Development through the state Community Development Block Grant program.

A HUD audit last year found inconsistencies in the state RLF program and the state decided to close all such programs. 

Programs that received their funding before 1992, like Saukville, will be allowed to “de-federalize” their loan program and use the funds for other projects. 

The Saukville loan program currently has $90,000 in available funds and has two active loans — one to Oldenburg Properties and another to Oldenburg Metal Tech. Both loans are current, said Ozaukee Economic Development Executive Director Kathleen Cady Schilling, who administers the program for Saukville and other communities. 

Changes in the program approved by the Village Board included:

• Loans over $25,000 must be repaid within 10 years. Loans less than $25,000 must be repaid within five years. The program currently allows a range of terms depending on the type of loan. 

• Loans over $25,000 have a fee of $1,500; lesser loans have a $250 fee.

• The program will continue to require that jobs be created or retained as a result of the loan, but they will no longer require that low and moderate-income people be hired, as was required under federal rules.