COVID-19 Small Business Emergency Loan Fund

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The Small Business Emergency Loan Fund Oversight Committee has formally issued an invitation for applications from qualified small businesses seeking financial assistance related to impacts from the COVID-19 pandemic. While the program remains a low interest loan with deferred payments, the Oversight Committee may consider requests for loan forgiveness or potential grants for applicants that demonstrate a clear and critical financial need. Awards recommended by the Oversight Committee are subject to formal agreements to be approved by the governing body of the appropriate funding source, as well as funding availability.


The Sun Prairie Small Business Emergency Loan Fund is designed to provide critical financial assistance to qualified small businesses that have been negatively impacted by the COVID-19 pandemic.  Funds from the City of Sun Prairie, the Sun Prairie Chamber of Commerce, the Sun Prairie Business Improvement District and the Bank of Sun Prairie have been pooled to create this fund.  It is specifically meant to be leveraged with other federal and local programs. 

Applicant Eligibility

Eligible applicants include private, for-profit small businesses of 25 or less employees (FTE’s) that have applied for and not received enough funds to cover COVID-19 related expenses, or were not awarded any funds. (e.g. the Paycheck Protection Program (PPP) through the SBA, the Dane County Small Business Fund, etc.)   Businesses must demonstrate that 1) the business was financially viable before Coronavirus, 2) that Coronavirus has directly impacted the business, and 3) that this assistance is likely to keep the business solvent.

Businesses over 25 employees, non-profit organizations, religious organizations, and public education organizations are not eligible for this program.

Eligible Uses of Funds

  • Salaries, Wages & Benefits not covered or awarded by PPP or other programs***NEW
  • Rent costs not covered by PPP
  • Utilities costs not covered by PPP
  • Other Business Related Loan Payments or Leases not covered by PPP
  • Insurance
  • Personal Protective Equipment
  • Cleaning Supplies
  • Lost Inventory
  • Third party fees for point of sale (POS) systems for online ordering and/or delivery management for restaurants (ie Door Dash, East Street, Uber Eats, Grub Hub)***NEW
  • Other operating costs directly related to the business may be considered by the oversight committee at their sole discretion depending upon the number of applications received, the purpose of requested funds, and the availability of funds.

Ineligible Uses of Funds

  • Equipment
  • Marketing
  • Fuel
  • Vehicles or Vehicle Maintenance
  • Payment of Investors
  • Property Taxes
  • ATM fees
  • Personal or Business Distributions

Terms of Financing

  • Maximum Loan Amount: Up to $5,000
  • Interest Rate: Fixed rate at prime at time of approval 
  • Payment Period: Begins 90 to 180 days after loan approval, monthly payments for one to two years after the initial grace period. Monthly payments will be made directly to Bank of Sun Prairie and deposited to a designated City account.
  • Loan agreements will include specific “claw back” provisions that can be enforced on applicants upon a missed payment.
  • Any default on any loan payment may cause the applicant (business or person) to be ineligible for any future financial assistance from the City.
  • There will be no penalty for early repayment of the loan.
  • Final terms shall be set by the oversight committee.

Submission Instructions

For security purposes, application materials may only be submitted by any of the following means:

  1. Mail a hard copy to:  
    Bank of Sun Prairie 
    c/o Deb Krebs, Sun Prairie Small Business Emergency Loan Fund
    228 East Main Street 
    Sun Prairie, WI 53590
  2. Email only allowed by the  Bank of Sun Prairie’s secure email service.  (Creation of an account is required.


Application Materials and Forms


Applications will be reviewed the last week of each month. Submit applications before noon on the following dates to be considered for that month's funding cycle. 

January 22

February 19

March 19


For more information regarding the program please send an email to