Your company is expanding and needs to build. But where will the funding come from?

When it’s time for Madison-area companies to build, most rely to some degree on conventional bank loans, but that’s not the only option. Jeff Grundahl, owner and chief executive officer of Madison-based general contractor JG Development and its divisions (including National Construction) shares other financing options to consider:

Assistance from Municipalities

Tax IncreDuluth Trading Company Exterior Imagemental Financing (TIF) is a tool that a town or city can use to fund development with property tax revenue. The municipality designates a Tax Incremental District (TID) where the development will take place. Property taxes collected on the development over a period of time help pay for the projects. Once the developments are complete and the costs are repaid, the TID is closed. Several of National’s clients have utilized TIFs for funding, including Saco Foods in Middleton and Mount Horeb companies Duluth Trading Company, Botham Investments, and Wyser Engineering.

OPTIONS FOR NEW COMPANIESred and white school building that looks like a barn, blue sky with clouds

The U.S. Small Business Administration (SBA) manages business loans, matches businesses to SBA-backed local lenders, and more. National’s client Academy of Little Vikings in Mount Horeb used SBA to help finance its project.

According to Jeff, “The SBA can be a good resource for start-ups and new businesses. It offers significant advantages as far as interest rates and amortization,” he says. “However, businesses likely cannot refinance existing debt with the SBA, which is why it usually makes more sense for new businesses to explore SBA’s offerings.”


The Wisconsin Economic Development Corporation (WEDC) works with hundreds of statewide partners and offers various tax credits to Wisconsin companies. In addition, says Jeff, “they offer low-interest loans and grants.”

Madison Region Economic Partnership (MadREP) partners and collaborates with WEDC, state agencies, counties and more to find and provide financing for growth. Jeff says, “they are a unique entity in that they will help a company find a building site.”


two women handling papers and writing in a notebookEstablished businesses may have access to lines of credit from their banks. According to Jeff, lines of credit “are not usually used for new building projects, but they can work for expansions.” He adds, “A line of credit can fill the funding gap until after construction. A business can refinance the line of credit after the project is complete.” This option is less common because of the possibility of liens, and it also depends on the financial status of the company that is expanding, but in certain instances a line of credit can be a good option.


There are many other financing options available based on the size, type and location of the project. Check out these other resources to see what might work for your business:


Thinking of expanding your business? We’d love to talk to you, no matter where you are in the planning process. Get in touch with us, or explore recent and current projects on our website!

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