Wisconsin Lt. Governor Barbara Lawton's Travels

06/01/2009 New opportunities for Wisconsin small businesses
6/5/2009

June 1, 2009 - Lawton discusses Liberal Education and America's Promise (LEAP) program

Lt. Governor Barbara Lawton joined presidents and chancellors of Wisconsin’s public and private colleges and universities Monday to discuss Wisconsin’s role as a pilot state for the Liberal Education and America’s Promise (LEAP) program.

LEAP is a ten-year public education initiative of the Association of American Colleges and Universities (AAC&U) to better align higher education outcomes with what students need to succeed today and to rebuild collective understanding of higher education as a public good, essential for democracy and civic engagement, and vital to the economic well-being of the state and its citizens. Lt. Governor Lawton serves on the National Leadership Council for the AAC&U.

June 2 and June 5, 2009 - New Tools to Expand Loan Access for Wisconsin Small Businesses

Lt. Governor Lawton and the Small Business Administration (SBA) announced in Racine, Kenosha, and Wausau availability of new tools to ease the credit crunch by helping Wisconsin small businesses access capital.

“The collapse of financial markets makes it increasingly difficult for small businesses to receive payroll loans, expand inventories, or grow in ways that create new jobs,” said Lt. Governor Lawton. “These expanded SBA programs reinvest in small business prosperity by helping them access capital immediately and at cheaper rates. I am here today to urge struggling local businesses to talk to their lending institutions about these new options.”

Pictured Above) Lt. Governor Lawton at Clemens Auto Repair in Racine, Racine Mayor John Dickert and State Senator John Lehman.

“We see three strategies playing out with this increased funding to SBA loan programs: pay the fees to get businesses to come in the door and connect to the capital they need; put banks in the mood to lend; and shore up the secondary market for the loans,” Lawton said. “Small Racine Mayor John Dickert, Lt. Governor Lawton and Dwight Geisler of Clemens Auto Repair. businesses anchor their communities, circulating money locally and providing high-quality jobs for residents. We want them positioned to drive economic recovery and create new jobs.”

In Racine, Clemens Auto Repair received an SBA loan with its fee waived, which enabled owner Dwight Geisler to stay in business and then increase his workforce.

“We would have closed our doors for good without the SBA loan,” said Clemens Auto Repair owner Dwight Geisler. “Now we have been able to add to my workforce of two with a new employee that started on May 18.”

Pictured above) Racine Mayor John Dickert, Lt. Governor Lawton and Dwight Geisler of Clemens Auto Repair.

In Kenosha business owners Stephanie and Phil Phillips of Kenosha also received an SBA loan with the fee waived. Their business, Wisconsin Bounce, has remained in operation with the help of the SBA loan.

Left) Phil Phillips of Wisconsin Bounce, T. Lindsay Jones of Wisconsin Bounce, Eric Ness of the SBA, Stephanie Phillips of Wisconsin Bounce, Lt. Governor Lawton and State Rep. John Steinbrink.

“With the credit market tightening up, my bank informed me they would no longer be able to offer me a line of credit and pointed me toward the SBA,” Wisconsin Bounce owner Phil Phillips said. “I am very happy with the low percentage interest rate and the money it is saving my business.”

Wausau’s Deborah and Richard Mohelnitzky received an SBA loan in 2007 to expand her Alphabet Soup Childcare business, and in 2009 received another SBA loan for $25,000 with its fees waived. This loan enabled Deborah and her husband Richard to expand and upgrade their goat farming Richard and Deborah Mohelnitzky, Lt. Governor Lawton and Eric Ness of the SBA. business, Sandy Hills Acres.

Left) Richard and Deborah Mohelnitzky, Lt. Governor Lawton and Eric Ness of the SBA.

“We received an SBA loan in 2007 to expand Alphabet Soup Childcare from six employees to 19 and move to a new facility,” said small business owner Deborah Mohelnitzky. “When my husband and I decided to expand our goat farming business we knew the credit crunch was blocking access to capital for many other businesses in the area. That’s why we went right back to the SBA. The SBA stepped in to make our farming expansion dream a reality. I encourage other businesses in the area to carefully examine these new options.”

Small businesses interested in learning more about these programs should visit www.sba.gov or www.ltgov.wisconsin.gov.