Interest rates and other terms reflect current market terms for similar loans. SWIB's loans are well suited for financing fixed assets or refinancing existing debt. Loans are sometimes used to acquire another business or to buy out a shareholder. The loans are not suited for short-term uses, such as financing inventory and receivables or routine seasonal operating expenses. The fixed assets of the business are often used as collateral. In some cases, a parent corporation may guarantee the loan. In other cases, a personal guarantee of the owner or major shareholders may be appropriate.

Borrowers are required to pay SWIB’s legal costs for making the loan and other costs, such as environmental assessments or appraisals, as needed. SWIB does not charge an application fee and does not generally charge a commitment fee (the exception being with a subordinated debt investment where a commitment fee is charged). SWIB may also charge a commitment fee if the borrower does not want to draw down the loan proceeds when the loan agreements are signed.

SWIB welcomes the opportunity to review requests for long-term loans to Wisconsin companies. Interested parties should contact the Investment Board to determine what additional information will be necessary for consideration of a private placement loan request.