Good news was announced in Viroqua last week as the city was awarded a $90,000 Rural Business Enterprise grant from the US Department of Agriculture Rural Development office.

The city will match the grant by contributing $10,000.

The money, which is part of the American Recovery and Reinvestment Act, will be used to establish a revolving loan fund for small and emerging businesses in Viroqua. Loans from $1,000 to $50,000 will be available at 4 percent interest for 60 months for start-up and expanding businesses that create or save jobs.

"When the money is paid back, it replenishes the fund the city has and will grow with interest," city administrator Matt Giese said. "It can be given out again and again to people who apply."

Loans may be used to finance working capital, inventory and all classes of fixed assets. Both direct loans and participating loans will be available.

Viroqua’s was one of 44 projects awarded from $4 million in grants and the only award in Wisconsin.

Jeff Gohlke, Viroqua Development Authority Development coordinator, applied for the grant on the city’s behalf in mid-August 2009. He volunteered to do administration of the grant under his city-paid position.

According to Giese, the main role of the VDA is to oversee the industrial park. However, VDA is a separate business that is linked to the city.