New Funds for Wisconsin Businesses Started During COVID

Tuesday, February 28th, 2023 -- 10:01 AM

(By Gaby Vinick, Wisconsin Public Radio) Hundreds of new companies have been founded in Wisconsin since the start of the COVID-19 pandemic.

According to Gaby Vinick with Wisconsin Public Radio, now the state is getting nearly $80 million to support those startups and small businesses. Gov. Tony Evers is allocating $50 million of those funds to the Wisconsin Economic Development Corporation, or WEDC, which plans to create a new Wisconsin Investment Fund.

The money comes from the federal State Small Business Credit Initiative through the American Rescue Plan Act. "We see over the last few years record fundraising from the venture side of things, but also a lot of success and growth and resiliency from small businesses that are serving Main Street communities as well," said Aaron Hagar, vice president of entrepreneurship and innovation.

Through the $50 million project, the group aims to partner with venture capital funds and early-stage investors to support "better access to capital for tech and growth companies across the state," Hagar said. He called small businesses "the lifeblood" of communities in Wisconsin.

The Evers administration will also allocate the money to some of WEDC's existing programs. Its Technology Development Loan program will receive $8 million. The Capital Catalyst program, which focuses on supporting nonprofit lenders, will get an additional $6 million.

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