Job creation ultimate goal in starting loan program Joining county's effort may be preferable to city going it alone

By ALAN HAMARI

By ALAN HAMARI

The city is considering joining forces with Waukesha County's Economic Development Corporation revolving loan program in an effort to help businesses create more jobs in Brookfield.

If the city partners with the WCEDC, it would contribute a small portion of the money lent to Brookfield businesses and receive a portion of the interest paid on the loan.

Brookfield's Economic Development Committee for the past several months has been talking about using money from the city's economic development fund to establish a loan or grant program of its own that would help new and smaller businesses.

That account, which is funded by a portion of the city's hotel room taxes, has a balance of about $300,000. Committee members and city personnel have discussed using a portion of that money -- $100,000 or so -- to start the program.

But WCEDC President Bill Mitchell this week warned the city about launching its own program, saying it would be more efficient for the city to join the WCEDC's existing efforts.

"It's always a lot more work than you ever imagine," Mitchell said.

Nathan Cunniff, chairman of the city's Economic Development Committee, agreed.

"The administrative burden on this is real," he said. "It's a lot of work."

The WCEDC program offers loans from $25,000 to $200,000, typically at 3 percent interest, for businesses wishing to expand or locate in Waukesha County.

Under the guidelines of the loans, which are provided through the Department of Housing and Urban Development, companies are required to create at least one full-time equivalent job per $35,000 borrowed.

Mitchell said the loan program has created 56 jobs in the last two years, and more than 550 since its inception in the mid-1990s.

Loans are usually paid back within three years, Mitchell said.

Mitchell said while the loans generally don't count for a huge portion of the projects, the program is responsible for keeping jobs and businesses in Waukesha County.

Brookfield Economic Development Coordinator Pat Drinan said the city could be the first municipality to join efforts with the WCEDC's loan program, although Mitchell said Menomonee Falls has expressed some interest, too.

A subcommittee of the Economic Development Committee plans to further discuss the potential partnership in the coming weeks.

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