234.75(2)
(2) "Eligible contract" means a contract entered into with the federal government, this state, a state agency, a local governmental unit or a financially secure business.
234.75(3)
(3) "Eligible project" means the work to be performed under an eligible contract by a person who seeks financial assistance under
s. 234.765.
234.75(5)
(5) "Financially secure business" means a business with annual gross revenue of at least $10,000,000 and that has a high credit rating.
234.75(10)
(10) "State agency" means any office, department, agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law which is entitled to expend moneys appropriated by law, including the legislature and the courts, and the authority, the Bradley center sports and entertainment corporation, the University of Wisconsin Hospitals and Clinics Authority and the health and educational facilities authority.
234.75 History
History: 1989 a. 31,
359;
1995 a. 27.
234.76
234.76
Qualifications for financial assistance. 234.76(1)
(1) A natural person qualifies for financial assistance under
ss. 234.75 to
234.802 if the authority determines that all of the following apply:
234.76(1)(a)
(a) The person has a reputation for financial responsibility among his or her creditors and employers and other persons who know the applicant.
234.76(1)(c)
(c) The person is unable to obtain adequate business financing on reasonable terms and at least one of the following applies:
234.76(1)(c)2.
2. The person is a minority group member and the unemployment rate for members of that minority group in this state exceeds a rate that the authority determines is significantly higher than the statewide average rate.
234.76(1)(c)3.
3. The person is a woman and the unemployment rate among women in this state exceeds a rate that the authority determines is significantly higher than the statewide average rate.
234.76(1)(d)
(d) The person meets at least one of the requirements of
sub. (4).
234.76(2)
(2) A person that is not a natural person qualifies for financial assistance under
ss. 234.75 to
234.802 if all of the following apply:
234.76(2)(a)
(a) The person is at least 51% owned by residents of this state who have a reputation for financial responsibility.
234.76(2)(b)
(b) The person is unable to obtain adequate business financing on reasonable terms and at least one of the following applies:
234.76(2)(b)2.
2. The person is at least 51% owned by minority group members and the unemployment rate for members of those minority groups in this state exceeds a rate the authority determines is significantly higher than the statewide average rate.
234.76(2)(b)3.
3. The person is at least 51% owned by women and the unemployment rate among women in this state exceeds a rate the authority determines is significantly higher than the statewide average rate.
234.76(2)(c)
(c) The person meets at least one of the requirements of
sub. (4).
234.76(4)(a)
(a) The annual gross revenue of the person, together with any parent, subsidiary or affiliate corporation, does not exceed $2,500,000.
234.76(4)(b)
(b) The person, together with any parent, subsidiary or affiliate corporation, employs fewer than 25 employes on a full-time basis.
234.76 History
History: 1989 a. 31,
359;
1993 a. 16.
234.765
234.765
Small business loan guarantees. 234.765(1)
(1) The authority may use money from the Wisconsin development reserve fund under
s. 234.93 to guarantee a loan if all of the following apply:
234.765(1)(c)
(c) The proceeds of the loan are used primarily to pay expenses necessary to perform on an eligible contract.
234.765(1)(d)
(d) The total amount for which the authority may be held liable on the guarantee, including interest and other expenses, does not exceed $200,000.
234.765(1)(e)
(e) The borrower previously applied for a loan on equivalent terms without a guarantee and the application was denied.
234.765(3)
(3) The authority shall establish the terms and conditions of guarantees under this section.
234.765(4)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under
sub. (1). The authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.765(4)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $2,000,000.
234.80
234.80
Applications for small business financial assistance. 234.80(1)(1) A person seeking financial assistance under
s. 234.765 shall submit an application in a form established by the authority. The authority may require the person to provide any information that the authority considers necessary in the application.
234.80(5)
(5) Before acting on an application submitted under this section, the authority may require a balance sheet or other financial statement audited by a certified public accountant.
234.80 History
History: 1989 a. 31.
234.802
234.802
Financial assistance; fees. The authority may establish premiums, fees or other charges for providing financial assistance under programs guaranteed by the Wisconsin development reserve fund.
234.802 History
History: 1989 a. 31,
359;
1993 a. 394.
234.82
234.82
Business improvement or start-up loan guarantee program. 234.82(1)(a)
(a) "Eligible business" means any of the following:
234.82(1)(a)1.
1. A business that is primarily engaged in or derives a substantial percentage of its annual gross revenue from furnishing goods, services, lodging, recreation facilities or amusement facilities to tourists or from furnishing goods or services to such businesses.
234.82(1)(a)2.
2. A business that derives more than 50% of its annual gross revenue from furnishing lodging.
234.82(1)(b)
(b) "Tourist" means a person who resides away from his or her permanent residence for a continuous period of less than 31 days or on a seasonal basis.
234.82(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a business improvement or start-up loan if all of the following apply:
234.82(2)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (3).
234.82(3)
(3) Eligible borrower. A person qualifies as an eligible borrower if all of the following apply:
234.82(3)(b)
(b) The annual gross revenue of the person, together with any parent, subsidiary or affiliate corporation, does not exceed $2,500,000 or, if the person intends to engage in an eligible business under
sub. (1) (a) 2., the annual gross revenue of the person, together with any parent, subsidiary or affiliate corporation, will not exceed $2,500,000.
234.82(3)(c)
(c) The person, together with any parent, subsidiary or affiliate corporation, employs fewer than 25 employes on a full-time basis or, if the person intends to engage in an eligible business under
sub. (1) (a) 2., the person, together with any parent, subsidiary or affiliate corporation, will employ fewer than 25 employes on a full-time basis.
234.82(3)(d)
(d) The person is unable to obtain adequate business financing on reasonable terms.
234.82(4)
(4) Eligible loan. A loan may be eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following requirements are met:
234.82(4)(a)
(a) The borrower uses the loan proceeds for upgrading, renovating or expanding an eligible business under
sub. (1) (a) 1. or for start-up costs for an eligible business under
sub. (1) (a) 2. Loan proceeds may be used for direct or related expenses associated with the purchase or improvement of land, buildings, machinery, equipment or inventory. Loan proceeds may not be used to refinance existing debt or for operating or entertainment expenses.
234.82(4)(b)
(b) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.82(4)(c)
(c) The loan term does not extend beyond 10 years after the date on which the financial institution disburses the loan unless the loan is extended by the authority.
234.82(4)(d)
(d) The total principal amount of all loans to the borrower that are guaranteed under this section may not exceed $100,000.
234.82(4)(e)
(e) The financial institution obtains a security interest in physical plant, equipment, machinery or other assets.
234.82(4)(f)
(f) The financial institution believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.82(4)(g)
(g) The financial institution agrees to the percentage of guarantee established for the loan by the authority.
234.82(6)
(6) Interest subsidy. Annually, from the Wisconsin development reserve fund, the authority may pay a financial institution that makes a loan to a borrower that is guaranteed under this section an amount equal to up to 3.5% of the outstanding balance of the loan.
234.82(7)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under
sub. (2). The authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.82(7)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $8,000,000.
234.83
234.83
Targeted development loan guarantee program. 234.83(1)(1)
Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:
234.83(1)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (2).
234.83(2)
(2) Eligible borrower. Any of the following qualifies as an eligible borrower if unable to obtain adequate business financing on reasonable terms:
234.83(2)(b)
(b) The elected governing body of a federally recognized American Indian tribe or band in this state.
234.83(3)(a)(a) A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.83(3)(a)1.
1. The borrower uses the loan proceeds for a business development project in a targeted area. Loan proceeds may be used for direct or related expenses associated with the purchase or improvement of land, buildings, machinery, equipment or inventory.
234.83(3)(a)2.
2. Loan proceeds are not used to refinance existing debt or for operating or entertainment expenses.
234.83(3)(a)3.
3. The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.83(3)(a)4.
4. The loan term does not extend beyond 15 years after the date on which the financial institution disburses the loan unless the loan is extended by the authority.
