Lt. Gov. Barbara Lawton arrived in Rhinelander Thursday afternoon for a one-hour press conference promoting new appropriations available through the Small Business Administration (SBA), in conjunction with the American Recovery and Reinvestment Act (ARRA.) The local stop was her third of the day, as she travels through the state with her message.

Rhinelander Mayor Dick Johns introduced Lawton, saying that the city had been working with Downtown Rhinelander Inc. (DRI) to encourage small business growth but that times have been difficult. "We can't do it alone," he said. "That's why we're grateful for your support."

"In Wisconsin, we identify small businesses as representing the values we hold dear such as hard work, circulating money locally and creating jobs," Lawton said. She said these values had been undermined by some who were "working on derivatives," causing the "ground to move underneath" many small businesses. "When one business suffers, you start to see quite a reaction.

"The collapse of financial markets makes it increasingly difficult for small businesses to receive payroll loans, expand inventories or grow in ways that create new jobs," Lawton went on. "The expanded SBA programs reinvest in small business prosperity by helping them access capital immediately and at cheaper rates. I am here today to urge struggling local businesses to talk to their lending institutions about these new options."

Eric Ness, district director for the Wisconsin office of the SBA, accompanied Lawton on her visit. He said that the new appropriations from the ARRA enhance existing SBA loan offerings.

Changes include, Ness said, temporarily eliminating up-front fees on short-term working capital loans (increasing the guarantee to 90 percent) and on fixed-asset, long-term larger loans; expanding funding for the SBA microloan program through Sept. 30, 2010; and increasing the surety bond guarantee program for large construction projects from a maximum of $2 million to $5 million.

"Small businesses need to go to their local lender and they should know what they need. If they don't, the SBA website has answers," Ness counseled.

Lawton also announced that American's Recovery Capital (ARC) Business Stabilization Loans are now available for financially-vulnerable businesses in need of temporary relief to keep their doors open.

This temporary SBA program will provide deferred-payment, interest-free loans of up to $35,000 to viable small businesses that need help making payments on an existing loan for up to six months. The ARC loans, which will be distributed directly by commercial lenders, are 100 percent guaranteed by the SBA and have no SBA fees associated with them.

DRI Executive Director Sue Bessert wanted to know how a local business might demonstrate its need. Ness responded that the SBA is looking for businesses that were viable before the economic downturn but since then have lost access to working capital. "There are a lot of reasons that could be used but they have to be documented," he said.

Ness warned that the programs will be delivered on a first-come, first-served basis and that Wisconsin businesses are competing nationally for the federal funds. "That's why we're here. We want to be sure that Wisconsin businesses get their fair share of these funds," he said.

Lawton agreed. "These are our [federal] tax dollars through the stimulus program and we want to see Wisconsin take advantage of it," she said.