Capital Catalyst Program

The Capital Catalyst Program is administered by the Wisconsin Economic Development Corporation (WEDC), a state-level economic development agency focused on advancing business growth, entrepreneurship, and innovation throughout Wisconsin. The program is funded through the U.S. Department of Treasury’s State Small Business Credit Initiative (SSBCI), which is designed to expand access to capital for small businesses. WEDC created this initiative to strengthen local entrepreneurial ecosystems by equipping community-based organizations with the financial resources necessary to support early-stage business development. The primary purpose of the Capital Catalyst Program is to stimulate the creation and growth of high-potential startups and emerging companies by increasing the availability of seed-stage funding. Rather than funding businesses directly, WEDC provides grants to eligible organizations that establish and manage investment funds. These funds are then deployed locally to provide loans or equity investments to startups and early-stage companies, particularly those with strong growth potential or those transitioning research into commercial applications. This approach ensures that funding decisions are made by entities closely connected to regional economic conditions and entrepreneurial networks. Grant funds may be used to capitalize investment vehicles that provide loans, equity investments such as SAFE or convertible notes, or royalty-based financing to eligible businesses. However, funds cannot be used for operational expenses, past costs, business relocation within Wisconsin, or direct grant-making to businesses. Returns generated from investments, including loan repayments or equity gains, may be recycled into the fund to support additional businesses or distributed proportionally between WEDC and the recipient organization, subject to approval. Eligibility for this program is limited to nonprofit and community-based organizations, including foundations, educational institutions, tribal entities, units of government, and similar entities operating within Wisconsin. Applicants must demonstrate strong organizational capacity, including the ability to manage investment funds, provide entrepreneurial support services, and maintain a formal investment selection process. Additionally, applicants are required to provide matching funds at a minimum ratio of 1:1 relative to the grant amount requested, and this match must be documented prior to disbursement. The application process begins with prospective applicants contacting a WEDC Account Manager to determine project fit. If aligned with program goals and eligibility requirements, applicants are invited to submit a formal application through the Network Wisconsin platform. Applications undergo underwriting and review by WEDC, with consideration given to past performance, economic impact potential, and alignment with statewide strategic priorities such as industry focus, rural development, and diversity initiatives. The program operates on a continuous application basis, meaning there is no fixed deadline for submission. However, awards are limited, with funding allocated annually and typically supporting a small number of organizations per cycle. Once awarded, recipients must comply with extensive reporting requirements, including quarterly performance reports detailing investments made, economic impact metrics such as job creation and business growth, and financial activity within the fund. Additional compliance requirements are imposed due to SSBCI funding, including adherence to federal guidelines related to private financing and business eligibility. Key contacts for the program include Ed Javier, Entrepreneurship Program Director, and Nichole Crust, Director of Entrepreneurship Access and Inclusion, both of whom can provide guidance on eligibility, application readiness, and program expectations. Recipients are also subject to audit requirements and must retain documentation for at least three years after the final report submission. Overall, the Capital Catalyst Program represents a strategic investment in Wisconsin’s entrepreneurial infrastructure by empowering local organizations to drive innovation and economic growth.

Ensure strong documentation of investment strategy organizational capacity and matching funds readiness as WEDC evaluates past performance and economic impact potential