MADISON (WKOW) – Two organizations are teaming up to provide loan to emerging minority-owned businesses in the developing South Side hub in Madison.
The program is administered by the Urban League of Greater Madison and funded by American Family Insurance.
The development of the South Side hub was announced in July 2020. It is located along Madison’s South Park Street corridor under the leadership of ULGM CEO and President Dr Ruben L. Anthony, Jr., and in partnership with a group of stakeholders, including Madison Black. Chamber of Commerce, city and county heads of government and other neighborhood stakeholders. The project grew out of over two years of community engagement involving hundreds of South Madison residents, nonprofits, elected officials, business leaders and more.
An investment of $ 400,000 to launch the loan program will be provided through the American Family Insurance Institute for Corporate and Social Impact. This will include $ 150,000 for program design and staff, and $ 250,000 to seed the loan fund.
The Urban League aims to grow the fund to at least $ 1 million by June 30 and start giving a mix of loans and grants to a variety of new or “main street” minority-owned businesses. in start-up (retail, restaurants, services, etc.) for the location in the South Side hub. Businesses will meet certain criteria, such as limited revenue or customer traction.
Loans with an average value of $ 20,000 each will be made available to businesses at low interest rates with no collateral required.
In addition to funding, companies will have access to technical assistance, including personalized coaching to develop strategic business plans, links to other business support resources, mentoring and access to a network of business partners. ‘Culturally competent business experts.
The South Side hub project will be inspired by Sherman Phoenix, an entrepreneurial hub in the Sherman Park neighborhood of Milwaukee and also supported by American Family, where space and programming is provided to small businesses of color as well as community and cultural events.