City Business Loans vs. Traditional Business Loans: What’s the Difference?
Entrepreneurs can view the differences between traditional business loans and City of Eau Claire business loans.
The City of Eau Claire offers multiple loan programs created to help entrepreneurs start, grow, and invest in their businesses—especially when traditional financing doesn’t cover the full project. These programs support everything from renovations and equipment purchases to job creation and new construction. Explore each option below, and contact the City of Eau Claire Economic Development Division if you’d like help determining which program is the best fit.
Since 1983, the City of Eau Claire has awarded nearly $15 million in small business loans, supporting dozens of businesses and driving an estimated three times more in private investment within city limits.
in Loans Distributed
Businesses Supported
in Investment Driven
Loans in Repayment
To be eligible for a business loan from the City of Eau Claire, applicants must have a business address located within city limits. If you’re unsure whether your business meets this requirement, use the City’s property search tool available here.
Provides accessible financing with fewer application requirements to startups and underserved businesses to help them access capital
Eligibility: Manufacturing, commercial, service, and creative economy businesses, including restaurants, that are located within Eau Claire city limits and have been established for less than 3 years
Loan Amounts: $5K-$25K
Interest Rate: 4%
Collateral: Not Required
Provides small loans to early-stage or expanding businesses to improve credit access, support growth, and promote inclusive economic development
Eligibility: Manufacturing, commercial, service, and creative economy businesses, excluding restaurants, that are located within Eau Claire city limits and have been established for less than 3 years
Loan Amounts: $5K-$30K
Interest Rate: 4%
Collateral: Required
Provides gap financing to established commercial and industrial businesses to support expansion, job creation, and a diverse, thriving local economy
Eligibility: Manufacturing, commercial, service, and creative economy businesses, excluding restaurants, that are located within Eau Claire city limits and have been established for 3 or more years
Loan Amounts: $10K-$100K
Interest Rate: 4%
Collateral: Required
Provides gap financing to commercial and industrial businesses to create higher-wage jobs that strengthen the city’s economic base and attract new residents
Eligibility: Manufacturing, commercial, service, and creative economy businesses, including restaurants, that are located within Eau Claire city limits
Loan Amounts: $10K-$150K
Interest Rate: 4% (or May Vary)
Collateral: Required
Provides low-interest loans to property owners, managers, and tenants to improve the appearance and vitality of downtown and nearby business districts
Eligibility: Property owners, businesses, and tenants that are located within Eau Claire city limits and have plans to renovate or rehabilitate a commercial building
Loan Amounts: $5K-$30K
Interest Rate: 0%
Collateral: Required
Follow these steps to apply for any of the loan programs offered by the City of Eau Claire.
Determine Eligibility
To get started, connect with the City of Eau Claire Economic Development Division by email, phone, or a visit to City Hall. Our team will walk through the program guidelines with you, help determine which loan best fits your business, and offer recommendations based on factors like income, collateral, business type, and how you plan to use the funds. Or if your project isn’t a match for City financing, we’ll point you toward other financial partners who may be a better fit.
Complete an Application
Once you’ve identified the right loan program, our team will share the application and walk you through the next steps. Fill out each section of the form, gather the supporting documents listed on the included checklist, and submit everything either online or in person. Staff will then review your materials and project details to make sure the application is complete.
Present to the Loan Administration Board
Once your application has been reviewed internally, you’ll be invited to present at an upcoming Loan Administration Board. During this meeting, board members will review your materials and ask questions to get a clear sense of your business and how the loan will be used. They’ll then deliberate and either make a decision that day or request additional information for a later meeting.
Sign Loan Documents
If your loan is approved, the Finance Department will prepare a loan agreement that lays out the interest rate, terms, and conditions. Take time to review everything and ask questions if anything needs clarification. Then, once you’re comfortable, sign the documents and return them to the Finance Department.
Receive Funds
After the loan documents are signed, the funds will be disbursed according to the terms of your agreement, typically within a few weeks. Make sure the money is only used for the approved purposes, and then follow the repayment schedule so you keep your loan in good standing and avoid any penalties or fees.
All loan applications are presented to the City of Eau Claire Loan Administration Board, a committee of community members that makes final decisions regarding City loans. This board typically meets from 11:30am-1:00pm on the third Wednesday of the month (except June and September) if there are applications to discuss.
Applications and all supporting materials must be submitted at least three weeks prior to Loan Administration Board meetings to be considered. Please keep in mind, submitting an application by the deadline does not guarantee that your application will be presented at the Loan Administration Board’s next meeting. Depending on the program and accuracy of materials initially submitted, City staff may need more than two weeks to prepare applications for presentation to board members. Updates will be shared throughout the process.
Here are the 2026 Loan Administration Board meeting dates and the deadlines by which completed applications need to be submitted ahead each meeting.
| Meeting Date | Application Deadline |
|---|---|
|
January 21, 2026 |
December 31, 2025 |
|
February 18, 2026 |
January 25, 2026 |
|
March 18, 2026 |
February 25, 2026 |
|
April 15, 2026 |
March 25, 2026 |
|
May 20, 2026 |
April 29, 2026 |
|
No Meeting in June |
No Meeting in June |
|
July 15, 2026 |
June 24, 2026 |
|
August 19, 2026 |
July 29, 2026 |
|
No Meeting in September |
No Meeting in September |
|
October 21, 2026 |
September 30, 2026 |
|
November 18, 2026 |
October 28, 2026 |
|
December 16, 2026 |
November 25, 2026 |
These helpful guides and success stories sharing the experiences of past applicants will help you navigate the City of Eau Claire loan application process with confidence.
Entrepreneurs can view the differences between traditional business loans and City of Eau Claire business loans.
Entrepreneurs should know these points before applying for City of Eau Claire business loans.
This guide outlines the application process for City of Eau Claire business loan programs.
Entrepreneurs can use these tips to increase the odds of being approved for the City of Eau Claire business loan programs.
Entrepreneurs can get a head start on their applications for City business loans by finding out what board members look out for.
Estilo Salon in Eau Claire’s Water Street Historic District extends a can-do spirit to the City’s Commercial Building Façade Loan Program.
Entrepreneurs can avoid delaying the City loan application process by reading through mistakes commonly made.
Entrepreneurs can get tips for combining City business loans with other funding during the application process.
Entrepreneurs can find out what happens after their application for a City business loan is approved.
Get answers to common questions before starting the loan application process.
Eligibility depends on the program, but City loans are generally available to for-profit businesses located in, or planning to locate in, Eau Claire city limits. Owners don’t have to live in Eau Claire, but their projects must happen here.
These loans have supported everything from restaurants and retail shops to manufacturers and service providers. Whether you’re starting a business or expanding one, what matters most is that your project brings value to the Eau Claire community—like creating jobs, filling a gap in the market, or revitalizing a commercial space.
Possibly, but it’s best to apply before you start construction or make major purchases. City funding is typically used for future expenses, not for reimbursing costs that have already happened. If your project is already underway, talk to the City of Eau Claire Economic Development Division as soon as possible to see what might still be eligible.
Yes. Many businesses combine loan programs to meet their full financing needs. You can also use a City loan alongside other funding sources like bank loans, grants, or equity investment. We encourage layering financing to make your project stronger.
It depends on the program, but typically, yes. In fact, City loan programs are often used to fill the gap when traditional financing isn’t available or doesn’t cover the full project. We may ask for a letter from your bank documenting the denial or limited approval.
It depends on the program and your project needs. Loans start as low as $5,000, while others can go much higher. Most programs are designed to fill a gap in your financing; they’re not necessarily meant to fully fund a project on their own.
City loans can be used for business expenses like equipment, building renovations, leasehold improvements, working capital, and even inventory. Each loan program has slightly different rules, so it’s best to check the program guidelines or ask the City of Eau Claire Economic Development Division if you’re unsure.
Interest rates are typically below market and fixed for the life of the loan. Repayment terms vary based on the type of loan and how the funds are used, but the Loan Administration Board will typically work with you to create terms that make sense for your business.
It depends on the program. It’s generally a good idea to bring other financing to the table to strengthen you application—either through owner equity, bank loans, or other sources. This helps demonstrate that your project is financially sound and that you’re invested in its success.
Matching funds can include bank loans, owner equity, grants, or other private financing sources. You’ll just need to show documentation to confirm those funds are committed.
Check the loan application checklist for full details, but you’ll typically need to at least provide the following:
From the time you submit an accurate and completed application and all supporting materials, the process usually takes about 4-8 weeks. Timing can vary based on the complexity of your project and when the Loan Administration Board meets. We’ll keep you updated along the way.
Applications are reviewed by the City of Eau Claire Economic Development Division and Finance Department before they’re presented to the City’s Loan Administration Board—a group of local professionals who evaluate your project’s financial strength, community impact, and alignment with program goals.
If your application isn’t approved, the Loan Administration Board will explain why and suggest ways to strengthen it for a future round. You’re welcome to revise and reapply, and we’re happy to help you prepare for the next submission.
It depends on the loan agreement, but loan funds are typically disbursed in a lump sum via check. The City of Eau Claire Finance Department will walk you through exactly how it works before closing.
Sometimes, yes, the City may ask for periodic updates, especially if your project includes job creation or redevelopment goals. Don’t worry, staff will let you know upfront what’s expected and keep the reporting simple and straightforward.
Yes. There’s no penalty for early repayment, so if you’re in a position to pay off the loan ahead of schedule, go for it!
Accessibility Statement
The City of Eau Claire is committed to ensuring that all entrepreneurs have equal access to our loan programs. We strive to make our application materials and services accessible to everyone, including people with disabilities and those who may face other barriers. If you have difficulty accessing any part of our loan application process or materials, please let us know so we can provide accommodations, alternative formats, or assistance to help you participate fully.