The Community Foundation of Central Wisconsin (CFCW) recently renewed its investment of $200,000 in CAP Services’ business loan fund for an additional three years. The fund is administered by Community Assets for People LLC (CAfP), a division of CAP Services.
“CAP Services’ loan fund is an excellent socially responsible investment for us,” said Terry Rothmann, CFCW Executive Director. “Their approach to economic development dovetails nicely into our mission of making Portage and Waushara counties better places to grow, work, play and retire.”
CAfP uses investments for lending targeted at low-income entrepreneurs, businesses creating jobs that commit to hiring low-income people, and existing businesses positioned for rapid growth that need quick access to capital.
Businesses in this last group are ready to make a leap in growth but lack the financing for more space, working capital and equipment. Loans in this group – which the CFCW’s initial 2010 investment was used for – do not have job creation requirements in the short term but focus on the overall impact of the company’s expansion on the local economy. Not requiring job creation helps companies focus on their expansion and incorporating the most advanced technology available so they can compete in the world market.
“These are businesses that produce a product or service that brings wealth into the community,” said Mary Patoka, CAP President and CEO. “While job creation is not a requirement of all lending, we know that as companies grow they often do create new jobs.”
Borrowers in this category have included American Governor in Amherst and Pointe Precision in Plover. Other loan fund investors Delta Dental of Wisconsin and the Incourage Community Foundation. The value of their investment is doubled as it can be leveraged for other governmental loan investments from organizations like the U.S. Small Business Administration and U.S. Department of Agriculture.
People interested in learning more about CAfP’s business loan funds should contact Laura West at 715-343-7141 or firstname.lastname@example.org.