08/09/2009 Lt. Governor Lawton Boasts Early Success in Easing Credit Crunch for Wisconsin Small Businesses

Lt. Governor Lawton and the Small Business Administration (SBA) announced the availability of new SBA tools to ease the credit crunch in Waukesha, Fort Atkinson and Watertown Wednesday.

Left) Lt. Governor Lawton talks to Waukesha small businesses about new SBA loan offerings.

Lt. Governor Lawton’s trip to Watertown marked her eighteenth stop in a statewide tour that has positioned Wisconsin in the top tier for receiving federal stimulus money through the SBA.  Wisconsin has done better in bringing that federal stimulus relief in SBA loans than New York, New Jersey, Texas and California combined.

During her visits, Lt. Governor Lawton talked with small businesses organized by the Chambers of Commerce in each city. She said the collapse of financial markets has impeded the growth and expansion of small businesses, and that the expanded SBA loans are designed to help small business owners overcome these challenges.  

“These expanded SBA programs reinvest in small business prosperity by helping them access capital immediately and at cheaper rates. One hundred fifty-four small businesses have already received ARC loans, more than New York, California, Texas and New Jersey combined. I am here today to urge struggling local businesses to talk to their lending institutions about these new options.”

Left) Lt. Governor Barbara Lawton, State Rep. Andy Jorgenson and Eric Ness of the SBA

The appropriations, authorized by the American Recovery and Reinvestment Act, enhance existing SBA loan offerings. Changes include temporarily eliminating up-front fees on short-term working capital loans (increasing the guaranty to 90%) and on fixed asset, long-term larger loans; expanding funding for the SBA microloan program through September 30th, 2010; and increasing the surety bond guarantee program for large construction projects from a maximum of $2 million to $5 million.

Lt. Governor Lawton also announced that America’s Recovery Capital (ARC) Business Stabilization Loans are now available for financially vulnerable businesses in need of temporary relief.

Left) Randy Roeseler, Watertown Chamber of Commerce, State Rep. Andy Jorgenson, Lt. Governor Lawton, and Eric Ness of the SBA.

This temporary SBA program will provide deferred-payment, interest-free loans of up to $35,000 to viable small businesses that need help making payments on an existing loan for up to six months. The ARC loans, which will be distributed directly by commercial lenders, are 100 percent guaranteed by the SBA and have no SBA fees associated with them. ARC program funding is available on a first-come, first-served basis; interested businesses should contact their lending institutions immediately.

To learn more about these programs, please visit www.sba.gov or www.ltgov.wisconsin.gov.

Touring the NASCO Catalog Company

Following the Ft. Atkinson SBA event Lt. Governor Lawton stopped by the Nasco, Inc. to visit with Nasco Executive Vice President, Steve Richter and State Rep. Andy Jorgenson. 

Nasco was started in 1941 by a vocational agriculture teacher. He developed several teaching aids to use in his vocational agriculture classes - teaching aids that were not readily available from any other source. This simple act of filling a classroom need with an appropriate product was to become a way of life for Nasco in years to come.  The company – which was once a single employee – has grown to employ over 570 workers in the Ft. Atkinson area.

Nasco executives spoke with Lt. Governor Lawton and Rep. Jorgensen about the state’s current business climate.

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