Rural Economic Development (RED) Program

The Rural Economic Development (RED) Program is designed to provide working capital or fixed asset financing for businesses. Since it's inception in 1990, the RED program has provided more than $1.4 million to over 110 Wisconsin businesses.

Eligible Applicants

Eligible Applicants include for-profit businesses or cooperatives that, when combined with affiliates, subsidiaries or parent entities, have fewer than 50 employees and meet either criteria A or B:

A. The business is or will be located in a city, town or village with a population of less than or equal to 6,000 people.

OR

B. The business is or will be located in a county with a population density of less than 150 persons per square mile. All but the following counties are eligible:

Brown, Dane, Fond du Lac, Kenosha,
LaCrosse, Milwaukee, Ozaukee, Outgamie,
Racine, Rock, Sheboygan,Washington,
Waukesha, Winnebago

Eligible Activities

• Construction and expansion
• Working capital
• Acquisition and existing businesses, land, buildings and equipment
• Retaining is not eligible

Funding Availability

Although Commerce can provide up to 50% of eligible costs (maximum $100,000), the actual level of participation in any given project is based upon an analysis of the following factors:

• Targeted Business
• Targeted Location
• Competition
• Community Benefit
• Business Viability
• Job Creation/Retention
• Employee Wages/Benefits
• Targeted Hires

The Application Process

First-time applicants for the Rural Economic Development (RED) Program assistance must follow the four steps listed below when applying. However, for previous recipients of Rural Economic Development Early Planning Grants, the Finance Specialist currently assigned to your project will take the place of their Area Development Manager specified in the following steps:

1. Interested applicants must first talk with their local Area Development Manager, who will discuss the project with the applicant, provide a copy of the application manual and identify other programs that could potentially assist the applicant.
   
   
2. The applicant will complete the application manual and submit it to the Department for review by a Finance Specialist.
   
   
3. The Finance Specialist will underwrite the project and make a funding recommendation to the Secretary's Office. The Secretary's Office will:

1. Deny the proposal, in which case the applicant will receive a letter outlining the reasons for denial.

2. OR

3. Make a positive funding recommendation, in which the applicant will receive a preliminary commitment letter fully detailing the terms and conditions of the Department's proposed participation.

4. If a positive recommendation is made, the final step is for the project to be presented to and approved by the Rural Economic Board.

For more information, contact the Area Development Manager in your region, click here.