Rise Business Funding

Subordinated Debt in Wisconsin

Wisconsin's diverse economy spans manufacturing in Milwaukee and Green Bay, agriculture across the central plains, healthcare systems statewide, and a thriving food and beverage sector. Rise Business Funding connects Wisconsin small businesses with subordinated debt solutions designed to support growth, acquisitions, and capital improvements across every region of the state.

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Funding in 30 to 90 Days

Typical funding time is 30 to 90 days to close, depending on the lender and your documents.

Funding $250K to $10M

Amounts range from $250K to $10M, based on your revenue and credit profile.

All 50 States Covered

Whether you are in Milwaukee, Madison, Green Bay, or a rural Wisconsin county, our lender network serves you.

About Subordinated Debt in Wisconsin

Most Wisconsin manufacturers carry a capital gap they cannot close with a single senior lender. A Fox Valley fabricated metal shop upgrading its press brake line, or a Milwaukee industrial machinery supplier adding a second shift to serve the Menomonee River Valley corridor, often needs $500,000 or more in growth capital that a conventional bank will not fully underwrite. Subordinated debt fills that gap by sitting behind senior debt in the repayment stack, giving lenders the comfort to say yes while giving your business the full funding it actually needs. Wisconsin's manufacturing sector generated $73.7 billion in GDP in 2024 and exported roughly $24 billion in goods, so the demand for capital at this scale is real and persistent.

The same funding structure suits industries outside the factory floor. A biohealth company near the Froedtert and Medical College of Wisconsin campus in Milwaukee, or a life sciences spinoff at Madison's University Research Park, often carries thin early revenue against heavy equipment and staffing costs. Healthcare business loans and manufacturing business loans can complement subordinated debt when your capital stack has multiple layers. For insurance and financial services firms in Milwaukee or Sheboygan building out compliance technology or acquiring a book of business, subordinated debt provides a patient, non-dilutive source of growth capital that does not force you to give up equity. Wisconsin hosts roughly 457,000 small businesses, and the ones scaling fastest typically combine senior credit with a subordinated tranche rather than waiting for one approval to cover everything.

Lenders in the Rise Business Funding network structure subordinated debt for Wisconsin businesses that have revenue, a clear use of proceeds, and a senior lender already in place or being arranged simultaneously. If your situation calls for a faster bridge while the full stack is assembled, bridge financing or a business line of credit can hold the position. Use the business funding calculator to model your payment structure before you apply.

Financing Options in Wisconsin

Subordinated Debt

Subordinated debt sits below senior loans in the capital stack, allowing Wisconsin businesses to access additional leverage for acquisitions, expansions, or buyouts. Lenders in our network structure deals around cash flow and enterprise value, not just hard collateral.

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Term Loans

Term loans provide Wisconsin businesses with a lump sum repaid over a fixed schedule, ideal for equipment purchases, real estate improvements, or working capital needs. Senior term loans can be paired with subordinated debt to build a complete capital stack.

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SBA Loans

SBA-backed loans offer Wisconsin small businesses competitive rates and longer repayment terms with partial government guarantees. These products work well alongside subordinated debt when structured financing is needed for acquisitions or major capital projects.

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Line of Credit

A revolving business line of credit gives Wisconsin companies flexible access to working capital they can draw and repay as needed. This product complements longer-term subordinated debt by covering short-term cash flow gaps between larger capital events.

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Long-Term Loans

Long-term business loans provide extended repayment windows suited to major Wisconsin business investments such as facility builds, technology infrastructure, or multi-year growth initiatives. Pairing a long-term loan with subordinated debt can fund complex deals efficiently.

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Revenue-Based Financing

Revenue-based financing allows Wisconsin businesses to repay a funding advance as a percentage of monthly revenue, providing flexibility during slower sales periods. This product suits businesses with strong recurring revenue that prefer payments tied to performance.

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Requirements to Qualify

Personal FICO Score

680+

Subordinated debt is a sophisticated product for established businesses with strong financial profiles. Higher credit standards reflect the complexity and size of these transactions.

Annual Revenue

$500,000+

Subordinated debt is designed for businesses with significant revenue. This is not a startup product; lenders need confidence in your ability to service both senior and subordinated obligations.

Time in Business

3+ years

Lenders require a substantial operating track record. Your financial statements, growth trajectory, and management experience are closely evaluated.

Existing Senior Debt

Typically required

Subordinated debt is usually layered on top of existing senior financing. The total capital structure, senior plus subordinated, must be sustainable for your cash flow.

How Rise Works

1

Submit Your Application

Complete our secure online application in minutes and share your recent business bank statements. No hard credit pull is required to apply, and there are no upfront fees.

2

Get Matched and Get a Decision

Rise Business Funding reviews your application and matches you with lenders in our network suited to your business. The lender then underwrites your application in full.

3

Receive Your Funds

Once you accept an offer and finalize documents with the lender, funds go to your business bank account. Typical funding time is 30 to 90 days to close.

Why Business Owners Choose Rise Business Funding

  • Funding in 30 to 90 Days

    Typical funding time is 30 to 90 days to close, depending on the lender and your documents.

  • Free to Apply, No Obligation

    Applying costs nothing, and you're never obligated to accept an offer.

  • Compare Before You Commit

    See the options you qualify for side by side, then pick the one whose payments fit your cash flow.

Wisconsin-Specific Resources

Wisconsin businesses building a complete capital stack often benefit from pairing private subordinated debt with public and mission-driven programs. The Wisconsin Economic Development Corporation offers gap financing through its Business Development Loan Program and Technology Development Loans that can anchor a senior tranche before Rise Business Funding layers in subordinated capital. WBD, Inc., the Madison-based Certified Development Company with more than $1 billion in active financing, specializes in SBA 504 loans for real estate and equipment that frequently coexist with subordinated structures. The Wisconsin Small Business Development Center Network, operating from 11 campuses statewide and helping clients raise over $132 million annually, provides the loan-readiness coaching that prepares owners to approach subordinated lenders with clean financials. None of these programs replaces private subordinated debt, but each one can make your full capital stack stronger.

Wisconsin Economic Development Corporation

Wisconsin's lead public-private economic development agency providing the Business Development Loan Program for gap financing, Technology Development Loans for startups and growth companies, Qualified New Business Venture tax credits of up to 25 percent of equity investment, and Small Business Development Grants of $50,000 to $250,000 awarded to local organizations that pass 100 percent of funds directly to small businesses.

wedc.org

Wisconsin Women's Business Initiative Corporation

Treasury-certified CDFI and SBA Community Advantage lender headquartered in Milwaukee that has deployed over $125 million in loans since 1987, offering direct small business loans from $1,000 to $350,000 to women, men, minorities, and low-income entrepreneurs statewide, with paired one-on-one technical assistance and financial wellness training across six regional offices.

wwbic.com

First American Capital Corporation, Inc.

Wisconsin's first Treasury-certified Native CDFI (certified 2004) and the first Native American CDFI in the nation designated as an SBA Microloan Intermediary Lender, providing revolving loan fund loans and SBA Community Advantage 7(a) loans up to $250,000 primarily to Native-owned businesses and other underserved borrowers across Wisconsin, with pre- and post-loan technical assistance.

faccwi.org

WBD, Inc.

SBA-designated Certified Development Company headquartered in Madison that has financed over 3,500 businesses and created over 76,000 jobs across Wisconsin and Minnesota since 1981, specializing in SBA 504 loans for owner-occupied commercial real estate and long-term fixed equipment with fixed interest rates, terms up to 25 years, and down payments as low as 10 percent. Maintains a lending portfolio exceeding $1 billion and ranks consistently among the top ten most active CDCs nationally.

wbd.org

SBA Wisconsin District Office

The single SBA district office serving all 72 Wisconsin counties, connecting small businesses to SBA 7(a) loans, 504 loans, and microloans through approved lenders, plus free counseling, federal contracting certifications, and disaster recovery assistance from offices in Milwaukee and Madison.

sba.gov

Wisconsin Small Business Development Center Network

Nationally accredited statewide network hosted at 11 Universities of Wisconsin campuses plus a Southwest Wisconsin office, providing no-cost confidential consulting and business education to over 6,300 clients annually, helping entrepreneurs raise over $132 million in capital per year through loan readiness coaching, market research, and referrals to lenders.

wisconsinsbdc.org

Frequently Asked Questions

About Funding in Wisconsin

What is subordinated debt and how does it work for Wisconsin businesses?

Subordinated debt is a form of financing that ranks below senior loans in the repayment hierarchy. For Wisconsin businesses, this means a lender in our network provides a junior capital layer that complements existing senior bank debt. Because subordinated lenders accept more risk, they typically price this product at a higher rate than senior debt, but the structure allows businesses to access more total capital than a single conventional loan would permit. It is commonly used for acquisitions, management buyouts, and large-scale growth projects where a senior loan alone would leave a funding gap.

What credit score do I need to qualify for subordinated debt in Wisconsin?

Most lenders in our network require a minimum personal FICO score of 680 to consider a subordinated debt application. For this type of financing in Wisconsin, a stronger credit profile, combined with solid revenue history and clear cash flow, tends to produce better terms and larger approved amounts. Lenders evaluating subordinated debt typically place significant weight on business fundamentals like enterprise value and debt service coverage, so credit score is one factor among several rather than the sole qualifier.

How fast can a Wisconsin business get funded through Rise Business Funding?

After submitting your application, most Wisconsin business owners receive a funding decision. Subordinated debt typically takes 30 to 90 days to close. Once you accept an offer, funds are generally disbursed to your business bank account in 30 to 90 days. The exact timeline can vary depending on the complexity of the transaction and the documentation required by the specific lender in our network. Subordinated debt transactions for acquisitions or buyouts may require additional due diligence and take slightly longer than simpler working capital products.

Can a Wisconsin LLC or S-Corp qualify for subordinated debt?

Yes. Lenders in our network work with a wide range of business entity types, including LLCs, S-Corps, C-Corps, and partnerships. The entity type itself is generally not a disqualifying factor. What matters most is the business's revenue consistency, cash flow, operating history, and the purpose of the financing. Wisconsin businesses structured as LLCs or S-Corps pursuing subordinated debt for growth transactions should ensure their financials are clean and well-documented before applying.

What documents are typically required to apply for subordinated debt in Wisconsin?

Most lenders in our network will request business bank statements for the prior three to six months, recent profit and loss statements, a current balance sheet, business tax returns, and details about the intended use of funds. For acquisition or buyout transactions, you may also need to provide information about the target company, a purchase agreement, and projections. Having these documents organized before you apply helps Wisconsin businesses move through the process more efficiently and improves the quality of offers received.

How is subordinated debt different from a standard term loan for Wisconsin businesses?

A standard term loan is typically a senior secured product backed by specific collateral such as equipment or real estate. Subordinated debt sits below that senior loan and is often evaluated on cash flow and enterprise value rather than hard assets. For Wisconsin businesses, this distinction matters because subordinated debt allows you to layer additional capital on top of existing bank financing without needing to pledge additional collateral. It is a more flexible tool for complex transactions, though it generally carries a higher cost of capital than senior debt due to the junior repayment position.

Are there Wisconsin-specific programs that complement subordinated debt financing?

Yes. The Wisconsin Economic Development Corporation administers capital access programs and the state's SSBCI deployment, which can complement private subordinated debt by providing additional lending capacity or credit support. The SBA Wisconsin District Office offers 504 and 7(a) programs that can serve as the senior debt layer in a capital stack, with subordinated debt filling the gap between the senior loan and the equity contribution. Wisconsin businesses in rural areas may also qualify for USDA Business and Industry loan guarantees. Combining these programs with private subordinated debt from lenders in our network can make larger transactions achievable.

Can a Wisconsin startup qualify for subordinated debt?

Subordinated debt is generally best suited to established Wisconsin businesses with a track record of revenue and cash flow, not early-stage startups. Most lenders in our network require at least three years of operating history and at least $500,000 in annual revenue. Early-stage businesses that cannot meet those thresholds may find products like short-term business loans or revenue-based financing more accessible as a starting point. Once a business demonstrates consistent revenue and operational stability, subordinated debt becomes a viable option for larger growth or acquisition goals.

Subordinated Debt in Wisconsin Cities

We serve businesses in Milwaukee. Pick your city for local programs, qualification specifics, and city-tailored FAQs.

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