Washington Co., WI – Economic Development Washington County is cheering the success of its small business loan program.
The goal of the “Washington County Microloan is to empower business owners and their employees with flexible and low-cost funds and offer easy-access financing to county businesses.”
EDWC recently worked with Todd Thelen as he pursued his dream of owning the 24-acre property at Slinger Speedway. The land encompasses the speedway, stands, parking, concessions, and offices.
Complicated negotiations and multiple hurdles had to be overcome to get this deal across the finish line. Thelen worked with a local bank in Washington County and EDWC provided the additional capital needed to propel the growth of the Speedway. The financing was low-cost at a fixed rate, with no pre-payment penalties.
EDWC took a subordinate position behind the lead lender, allowing funds to be treated as additional equity and not debt. This allowed Thelen to preserve internal capital and use equity from EDWC to increase his rate of return.
EDWC also provided data to support his business case through an economic/fiscal impact study.
THE SUCCESS
All parties were able to rebalance the capital stack to minimize impact on the bottom line, reduce the total cost of capital and improve cash flow.
Funding from EDWC allowed Thelen to deploy the funds where they were needed most.
- $305,451 in net benefits to Washington County, Village of Slinger and Slinger School District
- 44,500 visitors/year with $2,225,000 in visitor spend for the community.
- 90% of the attendance comes from within 30 miles, with 10% coming outside the state.
- 4,400 hotel nights with $87/night average for Hartford and Slinger community nights.
Click HERE to learn more about EDWC and its small business loan program