A program that would create the ability for small businesses to obtain loans to expand their operations within was given the thumbs down by the Waukesha County Board of Supervisors on Tuesday.
The measure was voted down 13 to 9, according to a Milwaukee Journal Sentinel article. Opposition from supervisors included government subsidies and the length the loan was to be interest free, according to the article, with one supervisor going as far as calling the program "offensive."
The program would have allowed businesses to borrow up to $50,000 interest free for three to five years to fill capital requirements to secure larger funding through banks and other financial sources, states a news release from Waukesha County Executive Dan Vrakas.
The businesses would have paid back the loan in full or converted to an interest-bearing short-term loan, according to the release. Acceptable uses of funds will included working capital for a specific project, inventory, equipment and facility build-out. The first phase of the program will be capped at $300,000.
“This program will provide an outstanding opportunity for businesses located in Waukesha County to ‘leverage’ their capital to secure full funding to expand their business,” Vrakas said in the release. “My hope is that this program will fill a recognized need to ultimately increase job creation and employment as well as retain businesses in Waukesha County.”