The Sun Prairie Small Business Emergency Loan Fund is designed to provide critical financial assistance to qualified small businesses that have been negatively impacted by the COVID-19 pandemic. Funds from the City of Sun Prairie, the Sun Prairie Chamber of Commerce, the Sun Prairie Business Improvement District and the Bank of Sun Prairie have been pooled to create this fund. It is specifically meant to be leveraged with other federal and local programs.
Eligible applicants include private, for-profit small businesses of 25 or less employees (FTE’s) that have applied for and not received enough funds to cover COVID-19 related expenses, or were not awarded any funds. (e.g. the Paycheck Protection Program (PPP) through the SBA, the Dane County Small Business Fund, etc.) Businesses must demonstrate that 1) the business was financially viable before Coronavirus, 2) that Coronavirus has directly impacted the business, and 3) that this assistance is likely to keep the business solvent.
Businesses over 25 employees, non-profit organizations, religious organizations, and public education organizations are not eligible for this program.
Eligible Uses of Funds
Rent costs not covered by PPP
Utilities costs not covered by PPP
Other Business Related Loan Payments or Leases not covered by PPP
Personal Protective Equipment
Other operating costs directly related to the business may be considered by the oversight committee at their sole discretion depending upon the number of applications received, the purpose of requested funds, and the availability of funds.
Ineligible Uses of Funds
Salaries, Wage & Benefits
Vehicles or Vehicle Maintenance
Payment of Investors
Personal or Business Distributions
Terms of Financing
Maximum Loan Amount: Up to $5,000
Interest Rate: Fixed rate at prime at time of approval
Payment Period: Begins 90 to 180 days after loan approval, monthly payments for one to two years after the initial grace period. Monthly payments will be made directly to Bank of Sun Prairie and deposited to a designated City account.
Loan agreements will include specific “claw back” provisions that can be enforced on applicants upon a missed payment.
Any default on any loan payment may cause the applicant (business or person) to be ineligible for any future financial assistance from the City.
There will be no penalty for early repayment of the loan.
Final terms shall be set by the oversight committee.
For security purposes, application materials may only be submitted by any of the following means:
Mail a hard copy to: Sun Prairie Small Business Emergency Loan Fund, c/o Bank of Sun Prairie , 228 East Main St., Sun Prairie, WI 53590.