Temporary Loan Forbearance Enacted for RACK Loan Holders

FOR IMMEDIATE RELEASE. March 20, 2020.

In light of the expanded reach of the COVID-19 virus (Coronavirus) in the United States, the State of Wisconsin and Outagamie County, City of Kaukauna Mayor Tony Penterman declared a Public Health Emergency on Tuesday, March 17.

In these extraordinary times, we understand that Kaukauna businesses may experience unanticipated drops in visitation by customers and decreased cashflow. However, these businesses need to continue to pay their employees, suppliers, vendors, etc. The Redevelopment Authority of the City of Kaukauna (RACK) has been in a unique position to support our small business community through our low interest loan program for nearly 30 years. Many of our Redevelopment Authority loan holders over this timeframe have been small, family-owned businesses, and a number have been bar/restaurants and downtown retail/service businesses. In these unprecedented times, we hope to find a small way to reduce the financial stresses placed on our small business community.

At the urging of Mayor Tony Penterman, the Planning and Community Development Department, which oversees loan servicing and management on behalf of the Redevelopment Authority of the City of Kaukauna loan portfolio, has enacted a temporary loan forbearance option for Redevelopment Authority loan holders who are current on their loan payments. These qualifying loan holders have been contacted by mail this week regarding this temporary forbearance option. This forbearance option does not apply to Property Assessed Clean Energy (PACE) loans at this time.

Business entities currently repaying a Redevelopment Authority loan will have the option to enter into temporary loan forbearance through the end of May 2020. This effectively alleviates loan holders from the need to make their March, April and May 2020 payments. During this time period, interest accrual would pause and loan holders can resume their regular payments beginning in June without penalty. City staff and the Redevelopment Authority of the City of Kaukauna will reevaluate the status of the COVID-19 virus in May to determine future action beyond that time.

Loan holders with questions should contact the City of Kaukauna Planning and Community Development Department: (920) 766-6315 | [email protected].