WEDC Unveils Small Business Development Grant (SBDG) Program

The Wisconsin Economic Development Corporation (WEDC) has created a new program that aims to support small businesses in the state of Wisconsin by encouraging initiatives that offer these businesses increased access to capital. The Small Business Development Grant (SBDG) Program will offer financial incentives for communities and organizations to develop innovative programs that directly support small businesses and small business creation.

Under the pilot program, WEDC has allocated $2 million for fiscal year 2025, with individual grant amounts ranging from $50,000 to $250,000. While the grant program will not require matching funds, applications that provide for matching funds will receive extra points in the scoring process. S coring will also take into account whether the project is in a rural or distressed area.

The competitive grant funds will flow through local economic development organizations, municipalities, tribal governments, and counties to support small business development in their areas. Small businesses should NOT reach out directly to WEDC.

Who is eligible to apply?

  • Local and regional economic development organizations
  • Municipalities
  • Tribal governments
  • Counties

What can grant funds cover?

  • Eligible uses of funds include, but are not limited to, matching grant programs (such as startup, façade, expansion) and small business financing for firms with fewer than 25 full-time equivalent employees.
  • Grant funds may not be used to cover past costs.

Visit wedc.org/regional to identify your regional economic development director who can help you determine if your proposed project meets the criteria to apply. If you are eligible to apply, you will receive an invitation to submit an application through the Network Wisconsin portal.

WEDC Implements Legislative Changes to Business Development Tax Credit

Earlier this year, the Legislature passed, and the Governor signed into law the Business Development Tax Credit Modernization Act (AB 627 – now 2023 WI Act 143) , which was one of WEDA’s top legislative priorities for the session. The bill modernizes Wisconsin’s Business Development Tax Credit (BTC) to align it with current economic relations. More specifically, the legislation changed the BTC from a job creation-centered incentive to more of a capital expenditure-focused program.

We are pleased to report WEDC has updated the BTC guidelines to reflect the recently passed legislation, which gives businesses more flexibility to respond to current market conditions.

The changes include:

  • Allowing businesses to qualify for BTC incentives by making qualified capital expenditures, without any job creation requirements. Previously, in order to qualify for these refundable, performance-based tax credits, an eligible business needed to  increase its employee head count in Wisconsin for each year of the contract term. Under the updated program guidelines, businesses can earn tax credits for capital investment  as long as they do not decrease their Wisconsin employee head count. This change enables businesses to invest in real property and equipment while maintaining and upskilling their Wisconsin workforce.
  • Providing a new incentive to encourage the creation of workforce housing and childcare. A BTC award package can now include tax credits for up to 15% of the value of the capital investments a company makes for these purposes.
  • Reducing the minimum amount of capital investment needed to qualify for the BTC Program from $1 million to $250,000, helping make the program accessible for smaller businesses.

The changes apply to any tax credit project certified on or after Jan. 1, 2024.

CLICK HERE to review the new guidelines.