Technology Development Fund (TDF)

The Technology Development Fund (TDF) program was established to help Wisconsin businesses research and develop technological innovations that have the potential to provide significant economic benefit to the state.

Eligible Applicants:

Any Wisconsin business or consortium can apply for TDF funds. A consortium is an association between a Wisconsin business and a Wisconsin higher educational institution.

Eligible Activities:

Eligible activities include research and development that:

1. Will lead to new or significantly improved products or processes.
   
   
2. Has a high probability of commercial success.
   
   
3. Will provide significant economic benefit to Wisconsin.

Eligible Costs:

Only costs directly associated with the proposed research project are eligible. These include:

• Salaries of applicant personnel (owner salaries are not eligible)
• Professional services provided by independent third parties
• Equipment critical to the research project
• Supplies and materials

Funding Availability:

TDF provides gap financing.  That is, TDF funds a portion of eligible project costs. The actual level of TDF participation in any given project is based upon an analysis of the project's:

1. Scientific and technical merit
2. Commercial potential
3. Economic impact
4. Business viability
5. Fund availability

Terms:

In order to achieve its goals, the TDF program is structured so that Commerce shares in both the risks and benefits associated with the project. For example, if the product or process being researched is successfully commercialized, repayment of the loan is required (typically a low interest loan amortized over 5 to 7 years). If the project is not commercially viable, the loan may be forgiven.

The Application Process:

The TDF application process involves four steps:

1. Interested applicants must first talk with the local Area Development Manager (ADM). The ADM will discuss the project with the applicant to gather preliminary project information. In addition, the ADM may identify other programs that could potentially assist the applicant.
   
   
2. The applicant completes a Prospect Data Sheet.  The ADM will submit this project information to Commerce for review by a Finance Specialist.
   
   
3. The Finance Specialist will underwrite the project and make a funding recommendation to the Secretary's Office. The Secretary's Office will:

1. Deny the proposal, in which case the applicant will receive a letter outlining the reasons for denial.

OR

B. Make a positive funding recommendation, in which case the
applicant will receive a preliminary commitment letter fully detailing
the terms and conditions of Commerce's proposed participation.

4.If a positive recommendation is made, the final step is for the project to be presented at the next
Wisconsin Development Finance (WDF) Board meeting for approval.

Business Information:

Business should have the following information available when they meet with the local ADM:

• Background information on the company.
• A description of the project.
• A detailed project budget.
• A project timeline.
• Balance sheet, profit and loss, and cash flow statements for the last three fiscal years, and the most recent interim statement.
• Personal Financial Statements for principals with ownership of 20% or greater. Statements should be signed and include Social Security numbers, phone numbers and home addresses.

For more information, contact the Area Development Manager in your region, click here.