There are signs of an economic recovery. However, state Representative Andy Jorgensen (D-Fort Atkinson) says credit markets remain tight and small businesses are having trouble getting the financing they need to expand and add jobs.
To improve access to loans for small businesses, Jorgensen is co-sponsoring a bill that creates a reserve fund to help insure loans that don’t meet current underwriting standards. Jorgensen says the program is not a handout, but a system to give lenders more security when making riskier loans.
The Wisconsin Capital Access Program would be funded with a one-time appropriation of $350,000 from the state, along with an insurance premium from the lender and borrower.
The proposal is based on a similar program in Milwaukee, which has issued over $50 million in loans over the past 17 years. It’s currently being considered by an Assembly committee.
AUDIO: Andrew Beckett reports (1:11)