Kewaunee County is giving small businesses that have borrowed from the Revolving Loan Fund – now known as the Business Development Loan Fund – a break on making payments during the COVID-19 crisis. All principal and interest payments are being deferred for April and May, according to a March 30 emergency order signed by Robert Weidner, Kewaunee County Board chair; and Scott Feldt, Kewaunee County administrator. During the deferral period, interest will continue to accrue at the rate provided in the promissory note to borrowers, who still have the option to make payments.
The fund’s purpose has been to provide gap financing for developing and expanding small businesses with a self-replenishing pool of money that uses payments on old loans to issue new ones. It is not an emergency loan fund. Currently, there are about 10 small businesses in Kewaunee County with loans amounting to $400,000 to $500,000 in payments owed to the county. All borrowers have been notified of the emergency order to defer payments.