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 to job creation and new construction. Explore each option below, and contact our team 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
The City of Eau Claire Low Barrier Loan Fund offers accessible financing with fewer requirements to help startups and underserved businesses access financing with fewer entry requirements.
Eligibility: Any manufacturing or service business, including restaurants, located within city limits that has been in business for 3 years or less
Loan Amounts: $5K-$25K
Interest Rate: 4%
Collateral: Not Required
The City of Eau Claire Micro Loan Fund provides small loans to early-stage or expanding businesses to improve credit access, support growth, and promote inclusive economic development.
Eligibility: Any manufacturing or service business, excluding restaurants, located within city limits that has been in business for 3 years or less
Loan Amounts: $5K-$30K
Interest Rate: 4%
Collateral: Required
The City of Eau Claire Revolving Loan Program provides financing to support commercial and industrial business growth, job creation, and a diverse, thriving local economy.
Eligibility: Any manufacturing or service business, excluding restaurants, located within city limits that has been in business for at least 3 years
Loan Amounts: $10K-$100K
Interest Rate: 4%
Collateral: Required
The City of Eau Claire EDA Revolving Loan Program provides larger loans to commercial and industrial businesses to create high-wage jobs, support startups, and strengthen the city’s economic base.
Eligibility: Any manufacturing or service business, including restaurants, located within city limits
Loan Amounts: $10K-$150K
Interest Rate: 4% (or May Vary)
Collateral: Required
The City of Eau Claire Commercial Building Façade Loan Program offers low-interest loans to help property owners improve the appearance and vitality of downtown and nearby business districts.
Eligibility: Any property owners, businesses, and tenants located within city limits and in commercial zones or the central business district
Loan Amounts: $5K-$30K
Interest Rate: 0%
Collateral: Required
Follow these steps to apply for the financing options offered by the City of Eau Claire.
Determine Eligibility
To begin the application process, reach out to the City of Eau Claire Economic Development Division via email, phone call, or in person at City Hall. Our team will help you review the guidelines for each loan program to find the right fit for your business and will make recommendations depending on factors such as your income, collateral, business type, and intended use of the loan funds. Or if your project is ineligible for City funding, we’ll refer you to other financial partners who may be able to help.
Complete an Application
When a loan program has been selected, our team will provide the application and next steps. Carefully fill out all sections of the form, gather all necessary documentation listed on the checklist included in the application, and submit all of your materials via email or in person. Staff will then review all of the materials and project details you provided to ensure they’re complete.
Present to the Loan Board
Once your application is ready, we will invite you to present before the Loan Administration Board. At this meeting, board members will review your application and ask questions so they understand your business and the intended use of the loan funds. They will then deliberate and deliver a decision by the end of the meeting or request more time or supporting materials for a later meeting date.
Sign Loan Documents
If your loan is approved, the Finance Department will extend a final offer outlining the interest rate, terms, and conditions of the agreement. Read these documents carefully and ask any questions you have before signing. Then sign and return them to the Finance Department.
Receive Funds
Once the loan documents have been signed, you will receive the loan funds as outlined in the agreement, usually within 1-2 months. Be sure to only use the funds for their intended purpose and adhere to the repayment schedule so you can maintain a positive credit history and avoid any potential penalties or fees.
The Loan Administration 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. Review the deadlines for submitting an application ahead of each meeting below.
Please note that 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.
| Meeting Date | Application Deadline |
|---|---|
|
January 15, 2025 |
December 25, 2024 |
|
February 19, 2025 |
January 29, 2025 |
|
March 19, 2025 |
February 26, 2025 |
|
April 16, 2025 |
March 26, 2025 |
|
May 21, 2025 |
April 30, 2025 |
|
July 16, 2025 |
June 25, 2025 |
|
August 20, 2025 |
July 30, 2025 |
|
October 15, 2025 |
September 24, 2025 |
|
November 19, 2025 |
October 29, 2025 |
|
December 17, 2025 |
November 26, 2025 |
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.
Get answers to these common questions before starting the application process.
City loans are available to for-profit businesses located in, or planning to locate in, the City of Eau Claire. You don’t have to live in Eau Claire, but your project 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 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 us 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.
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. Some 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 things 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 our team 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 we’ll work with you to create terms that make sense for your business.
It depends on the City loan program. It’s generally a good idea to bring other financing to the table to strengthen you application—either through personal 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 application checklist for full details, but you’ll typically need to at least provide the following:
A completed and signed application
Background check authorization
A business plan
Business entity formation documents
A project budget and use of funds
Financial projections
Recent personal and business tax returns
Collateral documentation
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’s 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.
Absolutely. 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.