Entrepreneur FUNDamentals
for Diverse Community Members
Frequently Asked Questions (FAQs)
1. What does this program offer?
Business training, coaching, and funding for entrepreneurs from socially and economically disadvantaged communities in Ashland County, Wisconsin. Specifically, the key components offered will include classroom instruction and individual coaching, mentorship from volunteers who are successful business owners, and down payment grants for entrepreneurs who will be seeking business loans from certified lenders, such as banks.
2. Who is administering this program?
Ashland Area Development Corporation (AADC) developed and will be administering this program in Ashland County. AADC received a grant to implement the Entrepreneur Assistance Program from Wisconsin’s Department of Administration (DOA) through the DOA’s Diverse Business Assistance Program.
3. Who is eligible to participate in this program?
Individuals from historically underrepresented communities (i.e., historically have been denied access to capital or who have historically been underbanked) in Ashland County. This program will serve entrepreneurs from the following ethnic and diverse business communities: Native American, women, people of color, and LGBTQ+.
4. Does a business need to be owned at least 51% by a member of an underrepresented community, or is 50% enough?
The business must be at least 51% owned, controlled, and actively managed by a member of a qualifying minority community, or 51% owned, controlled, and actively managed by a woman.
5. Can a group of people who own a business apply if at least one of them is a member of an underserved community?
At least 51% of the total ownership must meet the eligibility requirements.
6. Does the business owner need to be a resident of Ashland County? If so, is there a minimum residency requirement?
The applicant’s primary residence must have been located in Ashland County for the last 90 days prior to disbursement of the down payment grant award.
7. Does the business need to be located in Ashland County?
Yes
8. Are nonprofit organizations, tribal enterprises, local governments, franchises, and online businesses eligible to apply?
No
9. Are businesses that are part of a franchise eligible to apply?
Yes, if the business that is applying is located in Ashland County, and the business owner(s) resides in Ashland County and meets all eligibility requirements. Franchises, however, are not eligible for this program.
10. What is the cost for participants?
Participation is free.
11. What’s the difference between a grant and a loan?
A loans need to be paid back; a grant does not.
12. What things can this program’s down payment grant be used for?
A down payment grant award can be used when applying for business loans – typically, loans which are used for purchasing buildings and equipment.
13. Can I apply for a down payment grant if I don’t need to borrow money for my business?
No. Only business owners that will be applying for a loan from an approved lender are eligible to apply for a down payment grant.
14. Are existing businesses eligible to apply, or is the grant money only for starting new businesses?
The down payment grants are available for new and existing businesses.
15. Is there a minimum or maximum amount of down payment grant money for which a business can apply?
There is no minimum or maximum set amount. Each application will be judged on its own merit. However, each down payment grant application must be connected to a loan application that has been submitted to a qualified lender.
16. What is a business plan?
A business plan is a written document that guides an entrepreneur through the key stages of launching, operating, and growing a sustainable business. It serves as a roadmap to guide the business owner, and also demonstrates to potential lenders that the owner has reasonably considered all of the challenges and opportunities of creating a sustainable business.
Lenders, such as banks, require a completed business plan in order to consider a loan application. A business plan will also be required in order to apply for a down payment grant through this program. The same business plan can be provided to both the lender and the grantor; you do not need to create two different plans.
17. Is a business plan required to apply for grant money?
Yes, but if you do not have one or you need assistance updating the one you have, you can sign up for this program’s entrepreneur classes and/or one-on-one assistance with one of our coaches.
We encourage every entrepreneur to take advantage of all the resources this program offers when preparing the business plan. Staff will help you ensure your business plan and application is complete before it is submitted to the Review Committee.
18. I don’t need to borrow money for my business right now, so I don’t need a down payment grant. Can I still get help developing a business plan?
Yes
19. Can I apply for a down payment grant if I don’t have a business plan?
No. All applicants must submit a business plan. You do not need to work specifically with AADC to develop your business plan, but it is strongly encouraged and our assistance is free. You may develop the plan on your own or request assistance from another organization. Down payment grant applications that do not include a business plan will not be considered.
20. Does a business owner who has owned and operated a successful business for years still need to submit a business plan?
Yes
21. Will AADC write my business plan for me?
No, but our staff will help guide you through business plan development classes and provide one-on-one coaching.
22. Do I need to attend business classes at AADC in order to be eligible for a down payment grant?
You are not required to attend the training classes. However, you will need to submit a business plan as part of your grant application in order to be considered for a down payment grant.
23. What paperwork do I need in order to apply for the grant?
The program coordinator will provide the application form and help you with the process of applying for the grant.
24. My credit score is not great. Can I still participate in this program?
Yes
25. Can I use the money to help buy something if I’m not taking out a loan?
No. The grant money can only be used as a down payment for a loan.
26. Can the down payment grant be used to buy buildings?
Yes
27. Can the down payment grant be used for construction or remodeling expenses?
No
28. Can the down payment grant be used for land contracts?
No
29. Can the down payment grant be used to buy an existing business from someone who does not belong to one of the underrepresented communities?
Yes, as long as the new owner meets the eligibility criteria.
30. Can I apply for a down payment grant to help finance a loan which I already received for my business?
No
31. If the applicant is starting a new business, can they apply if they already own one or more businesses?
Yes
32. Is there a minimum age requirement to apply for a down payment grant?
Yes, the applicant must be at least 18 years old to apply for a down payment grant. However, an entrepreneur does not need to be 18 in order to participate in the entrepreneur training classes.
33. How does the program ensure that the granted down payment is actually used to secure a loan?
The down payment check will be submitted directly to the bank or qualified organization that is providing the loan.
34. How long will the program be operational? I’m worried the money will run out before I can apply.
The down payment program will end on December 31, 2024, or before that date if the money runs out.
35. How many down payment grants will be given out?
There is not a set number of down payment grants to be awarded. Each grant award amount is individually tied to its application. AADC’s Grant Application Review Committee will recommend approval or denial for each grant application based on the application’s own merits.
36. Are down payment grants considered taxable income?
Yes. Entrepreneurs who receive a down payment grant must report a down payment grant award as income.
3 7. Who will be reviewing and approving the grant applications?
AADC’s Grant Application Review Committee will be reviewing the applications and recommending approval or denial to AADC’s Board of Directors, who will make the final decision.
38. Is there a list of lenders I must choose from to get a loan? Can the loan be from a friend or family member?
The business loan must be from a commercial lender, Community Development Financial Institution (CDFI), or an approved organization that offers business loans.
39. How long does the application review process for a down payment grant take?
You can significantly shorten the application review process by ensuring that you have a completed business plan before you start the down payment grant application. AADC staff will help you develop your business plan.
40. How do I sign up for this program?
Call AADC at 715-682-8344 and say that you would like to schedule an appointment to talk with our program coordinator.
41. Who do I call if I have more questions?
Call AADC at 715-682-8344
for Diverse Community Members
Frequently Asked Questions (FAQs)
1. What does this program offer?
Business training, coaching, and funding for entrepreneurs from socially and economically disadvantaged communities in Ashland County, Wisconsin. Specifically, the key components offered will include classroom instruction and individual coaching, mentorship from volunteers who are successful business owners, and down payment grants for entrepreneurs who will be seeking business loans from certified lenders, such as banks.
2. Who is administering this program?
Ashland Area Development Corporation (AADC) developed and will be administering this program in Ashland County. AADC received a grant to implement the Entrepreneur Assistance Program from Wisconsin’s Department of Administration (DOA) through the DOA’s Diverse Business Assistance Program.
3. Who is eligible to participate in this program?
Individuals from historically underrepresented communities (i.e., historically have been denied access to capital or who have historically been underbanked) in Ashland County. This program will serve entrepreneurs from the following ethnic and diverse business communities: Native American, women, people of color, and LGBTQ+.
4. Does a business need to be owned at least 51% by a member of an underrepresented community, or is 50% enough?
The business must be at least 51% owned, controlled, and actively managed by a member of a qualifying minority community, or 51% owned, controlled, and actively managed by a woman.
5. Can a group of people who own a business apply if at least one of them is a member of an underserved community?
At least 51% of the total ownership must meet the eligibility requirements.
6. Does the business owner need to be a resident of Ashland County? If so, is there a minimum residency requirement?
The applicant’s primary residence must have been located in Ashland County for the last 90 days prior to disbursement of the down payment grant award.
7. Does the business need to be located in Ashland County?
Yes
8. Are nonprofit organizations, tribal enterprises, local governments, franchises, and online businesses eligible to apply?
No
9. Are businesses that are part of a franchise eligible to apply?
Yes, if the business that is applying is located in Ashland County, and the business owner(s) resides in Ashland County and meets all eligibility requirements. Franchises, however, are not eligible for this program.
10. What is the cost for participants?
Participation is free.
11. What’s the difference between a grant and a loan?
A loans need to be paid back; a grant does not.
12. What things can this program’s down payment grant be used for?
A down payment grant award can be used when applying for business loans – typically, loans which are used for purchasing buildings and equipment.
13. Can I apply for a down payment grant if I don’t need to borrow money for my business?
No. Only business owners that will be applying for a loan from an approved lender are eligible to apply for a down payment grant.
14. Are existing businesses eligible to apply, or is the grant money only for starting new businesses?
The down payment grants are available for new and existing businesses.
15. Is there a minimum or maximum amount of down payment grant money for which a business can apply?
There is no minimum or maximum set amount. Each application will be judged on its own merit. However, each down payment grant application must be connected to a loan application that has been submitted to a qualified lender.
16. What is a business plan?
A business plan is a written document that guides an entrepreneur through the key stages of launching, operating, and growing a sustainable business. It serves as a roadmap to guide the business owner, and also demonstrates to potential lenders that the owner has reasonably considered all of the challenges and opportunities of creating a sustainable business.
Lenders, such as banks, require a completed business plan in order to consider a loan application. A business plan will also be required in order to apply for a down payment grant through this program. The same business plan can be provided to both the lender and the grantor; you do not need to create two different plans.
17. Is a business plan required to apply for grant money?
Yes, but if you do not have one or you need assistance updating the one you have, you can sign up for this program’s entrepreneur classes and/or one-on-one assistance with one of our coaches.
We encourage every entrepreneur to take advantage of all the resources this program offers when preparing the business plan. Staff will help you ensure your business plan and application is complete before it is submitted to the Review Committee.
18. I don’t need to borrow money for my business right now, so I don’t need a down payment grant. Can I still get help developing a business plan?
Yes
19. Can I apply for a down payment grant if I don’t have a business plan?
No. All applicants must submit a business plan. You do not need to work specifically with AADC to develop your business plan, but it is strongly encouraged and our assistance is free. You may develop the plan on your own or request assistance from another organization. Down payment grant applications that do not include a business plan will not be considered.
20. Does a business owner who has owned and operated a successful business for years still need to submit a business plan?
Yes
21. Will AADC write my business plan for me?
No, but our staff will help guide you through business plan development classes and provide one-on-one coaching.
22. Do I need to attend business classes at AADC in order to be eligible for a down payment grant?
You are not required to attend the training classes. However, you will need to submit a business plan as part of your grant application in order to be considered for a down payment grant.
23. What paperwork do I need in order to apply for the grant?
The program coordinator will provide the application form and help you with the process of applying for the grant.
24. My credit score is not great. Can I still participate in this program?
Yes
25. Can I use the money to help buy something if I’m not taking out a loan?
No. The grant money can only be used as a down payment for a loan.
26. Can the down payment grant be used to buy buildings?
Yes
27. Can the down payment grant be used for construction or remodeling expenses?
No
28. Can the down payment grant be used for land contracts?
No
29. Can the down payment grant be used to buy an existing business from someone who does not belong to one of the underrepresented communities?
Yes, as long as the new owner meets the eligibility criteria.
30. Can I apply for a down payment grant to help finance a loan which I already received for my business?
No
31. If the applicant is starting a new business, can they apply if they already own one or more businesses?
Yes
32. Is there a minimum age requirement to apply for a down payment grant?
Yes, the applicant must be at least 18 years old to apply for a down payment grant. However, an entrepreneur does not need to be 18 in order to participate in the entrepreneur training classes.
33. How does the program ensure that the granted down payment is actually used to secure a loan?
The down payment check will be submitted directly to the bank or qualified organization that is providing the loan.
34. How long will the program be operational? I’m worried the money will run out before I can apply.
The down payment program will end on December 31, 2024, or before that date if the money runs out.
35. How many down payment grants will be given out?
There is not a set number of down payment grants to be awarded. Each grant award amount is individually tied to its application. AADC’s Grant Application Review Committee will recommend approval or denial for each grant application based on the application’s own merits.
36. Are down payment grants considered taxable income?
Yes. Entrepreneurs who receive a down payment grant must report a down payment grant award as income.
3 7. Who will be reviewing and approving the grant applications?
AADC’s Grant Application Review Committee will be reviewing the applications and recommending approval or denial to AADC’s Board of Directors, who will make the final decision.
38. Is there a list of lenders I must choose from to get a loan? Can the loan be from a friend or family member?
The business loan must be from a commercial lender, Community Development Financial Institution (CDFI), or an approved organization that offers business loans.
39. How long does the application review process for a down payment grant take?
You can significantly shorten the application review process by ensuring that you have a completed business plan before you start the down payment grant application. AADC staff will help you develop your business plan.
40. How do I sign up for this program?
Call AADC at 715-682-8344 and say that you would like to schedule an appointment to talk with our program coordinator.
41. Who do I call if I have more questions?
Call AADC at 715-682-8344